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Monday, October 05, 2015

Poor Customer Service Costs India $2.46 Billion Every Year
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Poor Customer Service Costs India $2.46 Billion Every Year  
Businesses in Australia, New Zealand and India lose a combined $5.6 billion in revenue due to inability to meet customer expectations, reveals a survey.   
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Friday, August 14, 2009 Businesses in India lose revenues up to $2.46 billion every year due to poor customer service over the Web, in the contact centre, or via mobile devices as consumers abandon transactions or end relationships when companies do not meet their expectations, reveals the findings of a survey. On the other hand, in Australia, businesses lose more than $2.191 billion per year and the cost of poor customer service in New Zealand totals more than $995.6 million.

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According to the survey conducted by Greenfield Online, businesses in Australia, New Zealand and India suffer significant losses amounting to $5.6 billion per year due to poor customer service. The 28-­question survey includes 500 consumers in each of the three countries -- Australia, New Zealand and India -- for a total of more than 1,500 diverse participants representing virtually every age and income bracket.

In India, 56 per cent of consumers say they have ended a relationship due to poor customer service, and 50 per cent had an experience that made them more likely to do so in the past year. The average value of a relationship that was ended in India was $121.81. The average consumer ended 1.84 relationships.

While in most cases the individual will turn to a competitor for the business, in a surprising number of instances, over 30 per cent, the consumer simply decides not to spend any money, an individual decision that potentially undermines local economies, the survey points out.

In India, for transactions abandoned due to poor customer service, an identical number turned into business for a competitor (62 per cent), and a large portion were completely abandoned and lost to all companies (38 per cent), confirms the survey.

In all three countries, people prefer to deal with a company by phone. In India, the phone remains the first choice of a preferred channel of interaction (60 per cent), but e-mail (17 per cent) is only slightly more favoured over SMS via mobile phone (13 per cent).

Automated self service was an issue for the survey participants in the three countries. Respondents say some of their key annoyances are automated, difficult to navigate, self service programmes that don't let them reach a human agent, working with agents who are not empowered to make decisions, and having to repeat information -- such as name and account number -- every time their call is forwarded to another department.

In India, consumers feel the most challenging communication channel is live contact centre agents (35 per cent) than e-mail (14 per cent), followed closely by automated self-service or voice recognition (12 per cent) and SMS (11 per cent).

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