The Consequences of Bad Customer Service On A Business



The consequences of bad customer service on a business include the following:

  • Customers will leave
  • Spread negative news
  • Your reputation will be affected
  • Good employees will leave
  • Poor customer retention
  • Inability to attract new one
  • You cannot get funding
  • Sales will drop
  • Profits drop
  • Your business will shut down

Bad customer service can  hurt your business in many ways, including the following:

Bad Customer Service: Customers Will Leave

One of the major consequences of bad customer service is that good customers will leave yous,  They will take their business to another vendor..  After all, nothing stops them from taking their business elsewhere. They have their money with them in their pocket. Besides. they also have choices.

Exiting Customers Spread Negative News

Another side effect of bad customer service is that as the customers are leaving you, they will be spreading negative news about your business.

Remember that bad news travel faster than good news and that it is easier to destroy a relationship than to build and keep one.

For example, if a customer leaves your shop angrily due to poor customer service, that customer can never recommend your business.

Bad Customer Service Affects Your Reputation

Poor customer service can easily damage your reputation. Firstly, making promises and not keeping them is one way your reputation can be affected.

Secondly, if you place a rude and inefficient customer service personnel at the front desk, that could affect your reputation as a business owner.

Beyond that, when customers leave because of bad user experiences in your shop, that will affect the way suppliers look at you. Similarly, that should affect how the public looks at you and your business.

Good Employees Will Leave

Poor customer service makes good employees leave. This is because when good employees begin to notice that customers are only trickling in, good employees will begin to look elsewhere for more secure jobs.

Besides, some of the exiting employees may also spread negative news about your inability to organize your business efficiently.

Every employee wants a steady a job which should enable him to take care of himself and his family.

Bad Customer Service Causes Low Customer Retention

Yet another consequence of bad customer service is that, firstly, it will make it very difficult for you to retain your existing customers.

After all, you can only retain satisfied customers. You cannot expect to keep a dissatisfied customer just as you would not expect him to recommend your business.

Secondly, no matter the quality of your products or services, bad customer service will scare away your customers. Customers will simply walk away, never ever thinking of coming back to your shop.

Therefore, your ability to keep your present customers should depend on your ability to meet and exceed customers’ expectations.

Inability To Attract New Customers

Another consequence of poor customer service is that it will be very difficult for you to attract new customers. Potential customers will have heard of the poor experiences of customers who have left you.

Think about it. If you cannot keep your present customers due to bad customer service, how can you acquire new ones?

You Cannot Get Funding

One of the results of poor customer service Is that lenders will not like to fund your business.  Obviously, they will hear of the bad customer service in your business. Consequently, they will not like to put their money in a risky business that could fail any time.

Bad Customer Service Drops Sales

A major consequence of poor customer service is that your sales will drop drastically. You can only make sales if you have regular customers. You need steady customers to remain in business.

In other words, repeat customers are the most profitable segment of your customer base. You need them to remain in business.

Most importantly, do not forget that business is based on trust and connection. Customers who are leaving because of poor customer service will never recommend your business to their family and friends.

Profits Will Drop

Poor customer service leads to drop in profits. You know as much as I do, that you need profits to remain in business. You can only make profits when you make sales.

If nobody is buying from you because of bad customer service, you will not make profits. And without profits, you will only remain in business for a short while.

Therefore, when  customers are moving away due to bad customer service, that is a warning for you to upgrade your customer service.

Bad Customer Service Causes Business Failure

The worst consequence of poor customer service is that your business will shut down. The effects of a business shut down are not something anybody wants to think of.

In conclusion, you can see the reason why many companies spend tons of money to train and retrain their customer service personnel. The train them because:

  • They represent the image of your business
  • And they relate with your customers and the general public on daily basis
  • They provide solutions to poor services
  • Customer service is where business is won or lost

Therefore, you should pay special attention to customer service in your business. Bad customer service can make an otherwise profitable business to fail. Related:How To Manage Small Business Finances Efficiently


By Samuel Ijenhi

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