The Side Effects Of Bad Customer Service On A Business



The following are the side effects of bad customer service on a business:

  • 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 you.  They will take their business to your competitors.  After all, with their money in their wallet, nothing stops them from taking their business elsewhere.

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. One negative news spread by an unhappy customer can rob you of about 10 potential customers.

For example, if a customer leaves your shop angrily due to poor customer service, chances are that such customer will never recommend your business to his family, friends and associates.

Bad Customer Service Affects Your Reputation

Poor customer service can affect your reputation in many ways, including:

  • inability to enjoy the trust of your suppliers, lenders and the general public.
  • You cannot retain your existing customers because of poor customer service.
  • People will be reluctant to do business with you because your reputation has a question mark.

Therefore, it is very important that you put effective and efficient customer service reps at the front desk. Customer service officers project the image of your business because they relate directly with the public. Their roles are very crucial to the survival of 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 . Every employee wants a steady a job which should enable him to take care of himself and his family.

Causes Low Customer Retention

Yet another consequence of bad customer service is that, firstly, it leads to poor customer retention. In other words, it will be difficult for you to keep your existing customers because they are unhappy with the quality of their user experience in your shop.

Remember that you can only retain satisfied customers. An unhappy customer will simply walk away and would never think of coming back to you.

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

Inability To Attract New Customers

Another side effect of bad 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 because 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

Another side effect of bad customer service is that your sales will continue to drop by the day. In other words, as customers are exiting , your sales will be reducing. Without customers you will only remain in business for a short  while.

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, friends and associates.

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, your your business will go under.

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

Causes Business Failure

The worst side effect of bad customer service is that your business could fail. The effects of a business shut down are not something anybody would want to think of or experience.

The importance of effective and efficient customer service in your business cannot be over-emphasized. It is for this reason that big companies spend tons of money training and retraining their customer service representatives. Poor customer service can stand in the way of the success of your business.

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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