Brand Experience

Ghosting Companies: The Rising Trend Among Dissatisfied Customers

13 July, 2023

is the takeaway from this study? It’s simple: customer service is the key to customer retention.

A recent study conducted by Coveo has shed light on the evolving landscape of customer service and its impact on customer retention. In a highly competitive market with an uncertain economy, businesses are feeling the pressure to retain their customers more than ever. The study reveals that customer service plays a pivotal role in attracting and retaining customers.

The study found an alarming trend of customers ‘ghosting’ companies, a trend that has been on the rise for the last three years. This year, 56% of customers reported they rarely or never complain about a negative customer service experience, compared to 46% last year. This is even more pronounced among Gen Z customers, with 60% of them stating they rarely or never complain about a negative experience.

This trend points to a significant risk for businesses, especially for those in industries like gym marketing or advertising for gyms. A poor customer service experience could lead to losing potential gym members. Therefore, businesses must focus on improving their customer service experience to retain their customers and attract new ones.

The study also highlighted that customers are less brand loyal and more likely to shop at affordable stores. Around 60% of respondents indicated they prefer affordable stores, with Gen Z customers being the most likely to do so. Furthermore, they are likely to abandon a brand after just two negative experiences, down from three last year.

One major area of frustration for customers is post-sale customer support, with 55% of respondents reporting it as a significant pain point. This frustration isn’t just limited to contact centers; half of the respondents stated they would rather have no service at all if the self-service is poor.

When it comes to what makes a poor self-service experience, the top response was difficulty in connecting with a representative, followed by conflicting information from customer service reps, inability to find information on their own, and inconsistent experiences across different touchpoints of the company.

So how can businesses improve their customer service experience? The study provides several key insights. One crucial step is making service content readily available so customers can understand how to get the most out of your offerings. This can be especially beneficial for businesses focused on gym lead generation or running Facebook ads for gyms.

Companies should also focus on providing consistent information and experiences and improving findability through intelligent search. When customers have simple questions, they should not have to sift through lengthy documentation to find answers. This can lead to frustration and even abandonment.

In addition, businesses should proactively offer relevant information throughout the customer journey. This extends beyond just marketing content and knowledge base to what consumers prefer today. This approach can be particularly lucrative in attracting prospects who usually conduct extensive research before making a purchase.

Lastly, for industries struggling with a poor reputation, it’s essential to build and maintain a feedback loop with your audience. Digital avenues provide an excellent way to understand what your customers want and need.

In conclusion, as customer expectations evolve, it is imperative for businesses to get their customer service right. Delivering a positive customer service experience proactively can result in better customer acquisition and retention. After all, customer service is not just about resolving issues; it’s about building lasting relationships with your customers.