Businesses and consumers have a very different relationship than they did a few decades ago. Back then, what mattered most to customers were low prices and high quality. Advertisements were more product-oriented, focusing on the tangible benefits of the product and how high quality correlated with a better brand.

Nowadays, many advertisements are becoming consumer-oriented, focusing on the positive experiences that will result from a customer's use of the product. This is due to the increasing emphasis on the customer experience.

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While customers still care about price and quality of products, a new factor in choosing between competing brands is customer service. Customers would rather invest in a brand that focuses on their needs and constantly provides value beyond the initial purchase.

There are many ways to make your brand more customer-focused. Consider the following statistics on customer service to help you brainstorm new strategies for strengthening your service team.

40 Customer Service Stats to Know in 2021

The Importance of High-Quality Customer Service

1. 90% of Americans use customer service as a factor in deciding whether or not to do business with a company. (Microsoft)

2. Investing in new customers is between 5 and 25 times more expensive than retaining existing ones. (Invesp)

3. 58% of American consumers will switch companies because of poor customer service. (Microsoft)

4. 89% of consumers are more likely to make another purchase after a positive customer service experience. (Salesforce Research)

5. 63% of consumers expect businesses to know their unique needs and expectations, while 76% of B2B buyers expect the same thing. (Salesforce Research)

The Power of Great Customer Service

6. If the company’s customer service is excellent, 78% of consumers will do business with a company again after a mistake. (Salesforce Research)

7. Nearly three out of five consumers report that good customer service is key for them to feel loyalty toward a brand. (Zendesk)

8. A good customer service experience heavily impacts recommendations. Consumers who rate a company’s service as “good” are 38% more likely to recommend that company. (Qualtrics XM Institute)

9. 93% of customers are likely to make repeat purchases with companies who offer excellent customer service. (HubSpot Research)

The Cost of Poor Customer Service

10. Roughly 50% of customers say they would switch to a new brand after one bad experience. (Zendesk)

11. After more than one bad experience, around 80% of consumers say they would rather do business with a competitor. (Zendesk)

12. Only one in five consumers will forgive a bad experience at a company whose customer service they rate as “very poor.” Nearly 80% will forgive a bad experience if they rate the service team as “very good.” (Qualtrics XM Institute)

13. 78% of customers have backed out of a purchase due to a poor customer experience. (Glance)

The Best Channels for Customer Service

14. More than 50% of customers across all age groups typically use the phone to reach out to a service team, making it the most used channel for customer service. (Zendesk)

15. The effectiveness of bots in resolving issues has fallen to 28%. American consumers do not find bots effective, with 40% relying on other channels to reach out to service teams. (Microsoft)

16. Customers prefer knowledge bases over all other self-service channels. (Forrester)

17. 79% of American internet users are on Facebook, making it the most popular social media platform. (Lyfe Marketing)

18. Millennials prefer live chat for customer service over every other communication channel. (Comm100)

The Frustrations Customers Face

19. 33% of customers are most frustrated by having to wait on hold. 33% are most frustrated by having to repeat themselves to multiple support reps. (HubSpot Research)

20. In a similar study, nearly 60% of customers feel that long holds and wait times are the most frustrating parts of a service experience. (Zendesk)

21. 53% of shoppers believe their feedback doesn't go to anyone who can actually act on it. (Microsoft)

22. A customer is four times more likely to switch a competitor if the problem they're having is service-based. (Bain and Company)

Sharing Customer Service Experiences

23. 36% of consumers overall will share their customer service experience, whether good or bad. More than a third report posting on Facebook, followed closely by Instagram. (CFI Group)

24. 94% of American customers will recommend a company whose service they rate as “very good.” (Qualtrics XM Institute)

25. Only 13% of consumers will recommend a company whose customer service they’ve rated as “very poor.” (Qualtrics XM Institute)

26. 50% of customers say they don’t share their bad or good service experiences through social media. (CFI Group)

The Business Opportunity of Customer Service

27. Nearly 90% of consumers trust a company whose service they’ve rated as “very good” to take care of their needs. (Qualtrics XM Institute)

28. Increasing customer retention rates by just 5% can increase profits by between 25% and 95%. (Bain and Company)

29. Businesses can grow revenues between 4% and 8% above their market when they prioritize better customer service experiences. (Bain & Company)

30. 89% of companies with "significantly above average" customer experiences perform better financially than their competitors. (Qualtrics XM Institute)

Customer Experience Statistics

31. 70% of the customer's journey is based on how the customer feels they are being treated. (McKinsey)

32. Your online conversion rate can improve by roughly 8% when you include personalized consumer experiences. (Trust Pilot)

33. On average, customer service agents only ask for a customer's name 21% of the time. (Glance)

34. 71% of consumers (age 16 - 24) believe that a quick response from your service team can drastically improve their customer experience. (Comm100)

35. Almost 90% of customers report trusting a company whose service they rate as “very good.” On the other hand, only 16% of those who give a “very poor” rating trust companies to the same degree. (Qualtrics XM Institute

Customer Satisfaction Statistics

36. 90% of customers rate an "immediate" response as important or very important when they have a customer service question. 60% of customers define "immediate" as 10 minutes or less. (HubSpot Research)

37. More than 70% of consumers believe that companies should collaborate on their behalf, so that they don’t have to repeat information to different representatives. (Zendesk)

38. Nearly 70% of customers are irritated when their call is transferred from department to department. (Zendesk)

39. 69% of consumers first try to resolve their issue on their own, but less than one third of companies offer self-service options such as a knowledge base. (Zendesk)

40. An NPS® promoter score has a customer lifetime value that's 600% - 1400% higher than a detractor. (Bain & Company)

The importance of customer service can’t be overstated. Investing in a strong service team will improve customer satisfaction, reduce churn, and increase revenue.

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Originally published Feb 19, 2021 3:56:00 PM, updated March 15 2022


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