Before digging into some quite fascinating info regarding customer service, it’s essential to understand what it’s all about. So, if you’ve ever had any questions regarding customer service statistics, fear not. You’re about to get all the answers.
In this article, we’ll discuss the importance of customer service, its effects on customer experience, and its impact on revenue.
So, if you want to find out more, just keep on reading!
10 Satisfying Customer Service Statistics for 2021
- By 2028, the global Customer experience management market is expected to be worth $27.12 billion.
- 91% of customers will make another purchase if they experience excellent customer service.
- 96% of customers will leave a brand if the customer service is bad.
- 76% of customers contact customer service via phone.
- US businesses lose about $62 billion each year as a result of poor customer service.
- In 2020, 40% of US customers stopped doing business with a brand because of bad customer service.
- Statistics on customer service report that 65% of social media users expect businesses to respond through public posts or private messages.
- Retailers use AI to take care of 50% of customer service tickets.
- 62% of marketers are oriented towards personalizing customer services.
- Personalized customer services can improve conversion rates by roughly 8%.
Customer Service Industry Overview
How important is customer service to consumers and brands?
1. In 2021, the customer care centers industry in the US reached $10.3 billion in market valuation.
(IBIS)
After witnessing a year-to-year growth of 0.9%, on average, since 2016, the market size is expected to see an increase of 2.1% during 2021.
2. When choosing a brand, 50% of global consumers believe customer service is “very important.”
(Microsoft)
At the same time, 40% of global customers think customer service is “somewhat important,” whereas a mere 10% believe it’s “not important.”
3. Based on the customer service statistics from 2020, 91% of customers would make another purchase if they experience great customer service.
(Salesforce Research)
Customer service is all about positive feedback, so much that 78% of customers would forgive a company if their customer service was flawless. Moreover, 71% of shoppers made a purchasing decision based on customer service quality.
4. Personalized customer services can improve conversion rates by roughly 8%.
(Trust Pilot)
According to personalized customer service statistics, the best way of drawing traffic to your website is to include personalized customer service.
In short, customers prefer browsing through their smartphones while on the go — hence why recommendations and suggestions go a long way (and save plenty of time).
5. 96% of customers will leave a brand if the customer service is bad.
(Forbes)
The only reason why businesses are losing money is that their competitors often have something more to offer, as stats on bad customer service suggest.
Based on one survey, 27.9% of people would be “extremely willing,” another 32.7% would be “very willing,” and 35.5% would be “somewhat willing” to leave a brand due to bad customer service.
6. In 2020, 40% of US customers stopped doing business with a brand because of bad customer service.
(Statista) (Ring Central)
Bad customer service refers to not having a communication strategy, being unhelpful in chat, transferring customers from one representative to another, lacking empathy, and making the customers wait.
7. Customer service statistics report that 1 in 3 people share their customer experience with other people.
(CFI Group)
Most of the time, people share their experiences on social media (36%), which includes Facebook (39%), Instagram (15%), YouTube (15%), and Twitter (13%).
8. 76% of customers contact customer service via phone.
(CFI Group)
Although phones are the most used method for contacting customer service, 20% of customers use emails, 14% go through interactive (online) chats, 10% try online contact forms, 4% prefer Facebook, and 2% use Twitter.
9. Customer service statistics for Australia show the car manufacturing industry has the highest percentage of customer satisfaction — namely, 92.3%.
(Statista)
Aussies love their cars, and their trust in car manufacturers is pretty high. In 2020, the most trusted brand in Australia was Toyota, followed by Tesla and Mazda.
That said, when it comes to customer satisfaction, hardware stores take second place (90.8%), followed by chemists and pharmacies (90.5%) and clothing retailers (90.2%).
On the flip side, risk and life insurers have the lowest percentage of customer satisfaction (65.1%).
10. By 2022, Canadians are expected to spend $18.6 billion on customer experience technology.
(Statista)
As per customer service statistics from Canada, the country already spent $15.8 billion in 2019 on customer experience technology. Additionally, due to a growing number of consumer electronic devices, brands can now collect as much information on customers and their needs.
Similarly, according to Walmart Canada stats, the retail giant plans to spend $3.5 billion on customer experience and technology over the next five years to provide the best possible customer service.
11. Retail and e-commerce witnessed a 46% growth in post-Covid customer engagement.
(Vonage)
Customer service statistics on Covid also show that five more industries experienced a growth in customer engagement, them being:
- Transportation and logistics (41%)
- Education (39%)
- Media/Entertainment (35%)
- Banking, finance, and insurance (27%)
- Healthcare (25%)
12. First Direct has the best customer service satisfaction rate in the UK.
(This is Money)
As of January 2021, First Direct has an 85.5 score on the customer service satisfaction list. John Lewis takes second place with 85.1, followed by Marks & Spencer (84.1%) and Amazon (83.6%), according to customer service statistics for the UK.
13. Amidst the pandemic, 65.6% of Brits valued customer service workers more than before.
(ICS)
More than half of UK residents appreciated the work of customer service employees during the pandemic, in contrast to 32.6% who didn’t change their opinion and 1.8% who valued customer service employees’ roles less than before.
14. Customer service representatives in the US earn an average of $32,628 per year.
(Glassdoor)
Financial services representatives earn the most — $40,508 per year, followed by customer service specialists ($36,650 per year). In contrast, customer service associates and call center representatives earn the least — $30,244 and $30,166, respectively.
Social Media Customer Service Statistics
How often do people use social media to contact a brand’s customer services?
15. 65% of social media users expect businesses to respond through public posts or private messages.
(Khoros)
75% of consumers that use Twitter expect businesses to respond through a private message, while a smaller percentage (68%) expects a public response (tweet/post/comment).
Similarly, on Instagram, 73% of users expect a public or private brand response.
16. Businesses and customers exchange about 1 billion messages on Facebook Messenger each month, as per social media customer service stats.
(Hootsuite)
Because 64% of people would rather use messages than phone calls, experts predict that during 2021, digital customer service interactions will grow by 40%.
17. 50% of Twitter users expect the brands to respond within three hours.
(Khoros)
Additionally, 47% of Facebook and 55% of Instagram users expect the same. When we compare all three social media platforms (namely, Twitter, Instagram, and Facebook), Instagram users have the highest expectations when it comes to communicating with brands.
18. Customer service statistics show men are more likely than women to contact brands through Twitter.
(Khoros)
More precisely, 81% of men contacted brands via Twitter compared to just 68% of women. Likewise, men have less patience than women — 27% expect to get a response from brands within an hour, whereas merely 22% of women hope for the same fast response.
Small Business Customer Service Statistics
How do small businesses deal with customer services?
19. US businesses lose about $62 billion each year as a result of poor customer service.
(Chat Desk)
A vast majority of people value customer service over anything else. In fact, 17% of Americans would be willing to spend even more money if they are provided with excellent service.
20. 66% of people expect brands to understand their expectations and needs.
(Salesforce)
Why is customer service important?
For one, customers don’t like being treated like numbers. Hence, more than half of them have high expectations from brands. For example, they expect personalized offers, innovative products and services, and the latest data protection measures.
21. Retailers use AI to take care of 50% of customer service tickets.
(Netomi)
Many retailers use Artificial Intelligence to help them manage operations and improve their customer service. For example, besides human agents, they use AI for quick resolutions. Based on retail customer service statistics, by 2022, the global spending on AI will reach $7.3 billion per year.
22. 1/3 of customer service workers report feeling drained after a day of work — both physically and mentally.
(Quantum Workplace)
Being a customer service worker isn’t easy. Namely, meeting customers’ needs can often drain a lot of energy, seeing how you have to live up to both employer and customer expectations.
23. B2B customer service statistics report that 62% of marketers are oriented towards personalizing customer services.
(Ledger Bennett) (Acquire)
Personalized customer services refer to providing assistance to customers tailored to suit their specific needs. This way, the customer feels more connected to the brand. Similarly, 49% of marketers are involved in personalizing customer communications.
That said, personalization can be implemented by personalized emails, automated individualization, or automatic product recommendations.
Millennial Customer Service Statistics
What do Millennials like/dislike when it comes to customer services?
24. Due to the pandemic, 20% of millennials had higher customer service expectations.
(Zendesk)
The pandemic left a mark on both customers and businesses, as well as their expectations. Whereas 62% of millennials had no expectations, 18% had lower expectations.
Likewise, in 2021, 53% of millennials cared more about the quality of the customer service than they did in the prior year.
25. According to customer service facts, 53% of millennials would choose another company after one bad customer service experience.
(Zendesk)
Only 23% of Millennials would stay loyal to the brand even after a bad experience with customer services.
On the other hand, Gen Z is less tolerant towards inadequate services. For example, 64% would switch to another brand after multiple negative experiences, compared to 16% that wouldn’t.
26. 61% of millennials would pay more money to receive quality customer service.
(Statista)
As customer service stats suggest, Gen Y cares more about the quality of customer services than any other generation.
Over 50% of millennials were willing to pay more money in 2019 to get better customer service, whereas Gen X (53%) and Baby Boomers (53%) were less enthusiastic about the idea of spending money.
27. Amidst the pandemic, millennials were looking for customer service more often than before.
(Salesforce)
According to Salesforce customer service statistics, Millennials were the pack leaders with 51%, Gen Z was close behind with 42%, followed by Gen X (25%), and Baby Boomers (11%).
28. 62% of millennials would rather use non-company guidance than customer service to resolve their issues.
(Gartner)
Younger generations, like millennials and Gen Zers, are more likely to seek information about a particular problem via non-company guidance (like YouTube videos, subreddit,or Google search). Unlike older generations, such as Gen Xers and Baby Boomers, that prefer customer services over DIY experimentations.
Interesting Customer Service Statistics
Can a customer service representative save a life, which company has the worst customer service, and how big is the global customer experience management market?
29. 95% of people would prefer slower support if the quality of the help was better.
(HelpScout)
Even though people like to do things faster, above all, they want quality. This is why customers don’t mind spending more time on customer support if the help they provide pays off, as HelpScout customer service stats reveal.
30. By 2028, the global Customer experience management market is expected to be worth $27.12 billion.
(Grand View Research)
The global Customer experience management market reached $8.79 billion in 2021. Based on estimations, it should witness a CAGR of 17.5% between 2021 and 2028.
North America (primarily the US and Canada) had the largest market share (over 44%). Likewise, key players included Adobe, Avaya Inc., Clarabridge, Freshworks Inc., Genesys, and IBM.
31. Employees deserve the same attention and care as the customers, as internal customer service statistics indicate.
(HubSpot)
Internal customer service deals with workers’ problems, i.e., it provides help to employees. The best example is an IT desk. For instance, if customer service workers have technical issues, they will reach out to the IT team for help.
32. A Comcast customer service representative once saved a man’s life.
(Today)
Kimberly Williams, a worker at the Comcast cable call center in Mississippi, talked on the phone with a client, Dan Magennis, about problems with lost channels when the man started to speak strangely.
Williams quickly realized that the man showed symptoms of a stroke, and she immediately called 911, which saved his life.
33. Ironically, based on recent customer service statistics, in 2020, Comcast had the worst customer service in the US.
(Statista) (Fierce Video)
In 2020, Comcast was the company that had the highest percentage of negative responses linked to bad customer service. Not only did the company lose 227,000 residential video subscribers in Q4 2020, but it also lost 21,000 business video customers.
Wells Fargo and DIRECTV had the second-worst customer service in the US.
34. The most common customer complaint is being held on the phone for too long.
(HubSpot)
Customers will hang up the phone after about two minutes of waiting, and 34% won’t call back.
Other common complaints include:
- out of stock or unavailable products
- repeating the problem to customer service representatives
- uninterested customer service representatives
- poor product (receiving a broken product or a product without a simple usage explanation)
- no fast call resolution (customers expect their issues to be solved after the first call)
- lack of follow-ups (no ongoing updates about the issue).
FAQs
What are the 7 minimums of customer service?
If brands want to provide exceptional customer service, they need to focus on:
- Offering quick resolutions
- Providing 24/7 support (supported by agents, chatbots, and a knowledge base)
- Communicating with customers through the channels they prefer (email, phone, social media)
- Having a helpful and proactive customer service
- Offering personalized experience
- Offering assistance to customers on how to resolve the issue on their own
- Using customer feedback to improve the customer’s experience
Why is customer service important for stats?
First of all, customer service portrays the brand’s values and purpose. Second, it’s a way of communication with customers directly, convincing them of the brand’s standards and strengths.
Next, good customer service equals loyal customers and better insight into customer experiences. And lastly, having good customer service allows brands to stand out from the competition.
What percentage of customers need customer service?
Based on one survey, 58% of US customers contacted customer service in 2020. The most common reasons why people reach out to customer service are:
- Customers are planning to buy a product from the brand, so they require more details about the product
- Customers are not satisfied with the goods or the service they received
- Customers have trouble with the brand’s website
- Customers want to communicate with the brand’s representative
What percentage of customers pay more for customer service?
People hold exceptional customer service in high regard, so much that 86% would pay more money to get an exceptional customer experience.
Millennials are most likely to pay an extra dollar to get quality customer service (61%), followed by Gen X (53%) and Baby Boomers (53%).
That said, people like to see that the business in question cares about them and their needs.
How many people will a customer tell if they have a good experience?
77% of happy customers will share their positive experiences with other people. In a nutshell:
- 46% will tell their friends about the brand
- 44% will share their positive customer service experience
- 24% will recommend the brand on social media
- 23% will send positive feedback back to the company
- 20% will write a positive review
- 16% will write a compliment on social media
- 7% will write a blog post about their positive experience with the brand
What percentage of customers will actually complain when they are dissatisfied with service?
Merely 4% of customers will complain about bad service, whereas 96% choose to remain silent. However, the same percentage of unsatisfied customers (96%) will tell 9–15 people that they had a bad experience, and another 13% will tell 20 people.
In addition to that, 91% of unhappy customers won’t return to the brand after a bad experience.
Conclusion
Whether you are a business owner, an employee, or merely a customer, it doesn’t matter — customer service reigns supreme.
So, whatever you do, make sure your customers are fully satisfied and that all their needs are met to inspire positive customer service statistics. After all, a happy customer is a loyal customer; and a loyal customer makes a great brand advocate!
Sources:
- Acquire
- Andy Beal
- CFI Group
- Chat Desk
- Conversational
- Fierce Video
- Forbes
- Gartner
- Glassdoor
- Grand View Research
- HelpScout
- Hootsuite
- HubSpot
- HubSpot
- HubSpot
- ICS
- IBIS
- Khoros
- Ledger Bennett
- Microsoft
- Netomi
- Quantum Workplace
- Ring Central
- Salesforce Research
- Salesforce
- Salesforce
- Statista
- Statista
- Statista
- Statista
- Statista
- Statista
- SuperOffice
- This is Money
- Today
- Trust Pilot
- Vonage
- Zendesk
- Zendesk
