Customer expectations have evolved to become a critical factor that can make or break a company’s reputation.
A good customer service experience has become synonymous with success, as satisfied customers not only return for repeat business but also spread positive word-of-mouth.
On the flip side, a poor customer service experience or bad customer service can lead to detrimental consequences. When businesses fail to meet or exceed the expectations of their clientele, they risk damaging their brand image and losing valuable customers.
Therefore, investing in a robust customer service strategy is not just about addressing issues; it’s about ensuring that each interaction contributes to a memorable and good customer service experience.
Customer service is essential to the success of any enterprise, and having excellent customer service teams can make it even more possible.
Unfortunately, it can be difficult to quantify the impact of customer service, making it hard to determine how it affects a company’s bottom line.
To remain competitive, businesses must understand the latest statistics and trends in customer service and use them to their advantage.
This article will discuss important customer service statistics and trends that might significantly help businesses achieve quality service.
Customer service statistics 2023
“89% of consumers are more likely to make another purchase after a positive consumer experience”
– Source: Salesforce
“Consumers are willing to spend 17% more on companies with exceptional customer service”
– Source: American Express
“43% of customers would pay for greater convenience“
– Source: PwC
“38% of consumers are more likely to recommend the company if it has good consumer service“
– Source: Qualtrics XM Institute
“A 10% increase in customer retention can lead to a 30% increase in the company’s value“
– Source: Bain & Co.
“Companies can grow revenues between 4% and 8% when they prioritize customer service experience“
– Source: Bain & Co.
“Firms that build relationships with customers have an upsell rate of 25%“
– Source: Deloitte
“Customers prefer human interaction for complex customer service issues“
– Source: Microsoft
“34% of companies plan to use AI and ML to improve customer service“
– Source: Salesforce
“81% of customers prefer self-service solutions“
– Source: NICE Consumer Report
“Global chatbot market size is projected to expand at a compound annual growth rate (CAGR) of 25.7% by 2030“
– Source: Grand View Research
“At least 54% of respondents are willing to use chatbots for simple inquiries“
– Source: Userlike
“Companies investing in omnichannel customer service have jumped from 20% to 80% since 2012“
– Source: PwC
“Around 27% of small enterprises outsource customer service“
– Source: Clutch
The power of excellent customer service
When it comes to customer service, businesses have the opportunity to make a lasting impression on consumers. Excellent customer service can be a business’s number one asset.
Offering good customer service also means an eagerness to go above and beyond, which can lead to increased profitability and overall business growth.
Here are some of the benefits of good customer service and some statistics demonstrating its importance:
Boosts customer loyalty
Good customer service is a critical factor in building customer loyalty. It can create an environment of trust and reliability.
Salesforce’s latest study revealed that 89% of consumers are more likely to make another purchase after a positive consumer experience.
This shows that customer service can directly impact customer loyalty and that companies should strive to provide the best customer service possible.
Having a positive customer experience is an essential factor in customers’ decisions to purchase from a company. For instance, research from American Express found that consumers are willing to spend 17% more on companies with exceptional customer service.
These statistics demonstrate the importance of providing excellent customer service to build customer loyalty.
By doing so, businesses can create loyal purchasers who will likely recommend the company and spend more money on its products and services.
Consumers often make their buying decisions based on the quality of service they receive, leading to many organizations trying to provide the best customer service possible.
Clearly, this can directly impact the profits of a company. The following customer service statistics can support this point.
A 2017 PwC study reported that 43% of customers would pay for greater convenience, and 42% would give a friendly and welcoming consumer experience.
Moreover, bear in mind that happy customers will likely endorse a business to others, which can be a factor in swelling returns.
According to Qualtrics XM Institute’s 2020 study, 38% of consumers are more likely to recommend the company if it has good consumer service. That said, word-of-mouth marketing is one of the most effective ways to attract new customers and a great way to increase financial gain.
Overall, these customer service statistics suggest that investing in upgrading customer service will likely lead to increased customer satisfaction and greater profits.
It’s no surprise that organizations prioritizing customer service are successful. It has a direct and positive effect on businesses bottom line.
Customer service statistics have even shown that good client support has the power to boost conversions.
For instance, Bain & Company’s surveys found that a 10% increase in customer retention can lead to a 30% boost in the company’s value.
Another study by the same researcher discovered companies could grow revenues between 4% and 8% above their market when prioritizing customer service experience.
The statistics above show that companies with good customer service will be rewarded with higher conversion rates and further loyal customers.
Up-sell and cross-sell opportunities
As organizations strive to keep consumers happy and ensure their loyalty. These statistics demonstrate how quality customer service can directly affect up-sell and cross-sell opportunities.
As per Deloitte’s 2017 Global Contact Center Survey, firms that actively work on building relationships with customers reported an average up-sell rate of 25%
Additionally, a survey by SQM Group found that when customers’ concerns are resolved, their cross-selling acceptance rate increases by up to 20%.
Clearly, customer service can aid organizations in boosting revenues and remaining competitive in their respective markets.
Customer service statistics: Importance of human touch
Although technology has allowed firms to reach new customers at a lower cost, many organizations overlook the importance of the human touch in customer service.
Many customer service statistics show that consumers look for a personalized experience with the brands they interact with.
Microsoft’s 2016 study found that customers preferred human interaction when it came to complex customer service issues and were willing to pay more for it.
Whatever the case, providing a personable customer experience can be an invaluable asset for firms to remain competitive in the digital age.
In fact, in PwC’s survey, three-quarters of consumers preferred human interaction in the future. This suggests that the human touch helps create a more personalized, tailored experience which can help create a stronger bond between the business and its consumers.
Businesses can create strong relationships with their consumers by making customers feel heard, valued, and ensuring customer satisfaction.
Top customer service trends for 2023
To stay ahead of the competition, it’s important to stay up-to-date on the latest trends to provide the best possible experience for consumers.
Here are popular customer service trends, from AI-powered chatbots to personalized customer service that can help your business:
Automation will continue to improve
Automation is becoming increasingly important as it offers more efficient and cost-effective solutions for companies. In the coming years, automation will continue to be integral to customer service, improving customer engagement and satisfaction.
According to Salesforce’s latest report, 34% of companies plan to use AI and ML to improve customer service.
With the right customer service solutions, businesses can ensure that their customers have a positive experience. In turn, these patrons will remain loyal to their brand.
Investment in self-service
Self-service technology is becoming prevalent for companies looking to reduce costs and provide customers with a better experience.
According to NICE’s 2022 customer experience report, 81% of customers prefer self-service solutions, and businesses believe 53% of consumers are very satisfied with their self-service and provide good customer feedback.
Technological innovations such as interactive voice response (IVR), chatbots, knowledge bases, and virtual assistants provide an efficient customer service experience.
As companies look for ways to augment their customer service strategies, self-service technology is an ideal option. With the growing demand for more efficient customer service experiences, a lot of companies are expected to invest in self-service technology in the coming years.
Chatbot growth continues
The customer service industry is rapidly changing due to the emergence of new technologies, for instance, chatbot technology.
As a matter of fact, Grand View Research’s latest report revealed that the global chatbot market size was valued at USD 525.7 million in 2021. It is projected to expand at a compound annual growth rate (CAGR) of 25.7% by 2030.
Chatbots are an attractive option since they can provide a personalized experience and are cost-effective, as they require minimal resources to maintain and operate.
Userlike’s research claimed that 54% of its respondents are willing to use chatbots for simple inquiries such as product specifications, order status, or shipping policies.
Whether it is chatbots or AI, this kind of technology indicates that there will be continued growth in years to come. As such, businesses should stay ahead of the curve by implementing them into their customer service strategies.
No more silos
The future of no silos in businesses is promising, but there is still much work to be done to embrace this approach truly.
Businesses are now adopting a more holistic, cross-functional approach to customer service. In this case, customer service will become more integrated and less siloed.
As stated in McKinsey’s research, communication and knowledge sharing improved productivity by 35%. With organizations investing in this technology, it ensures that all departments work together towards a unified goal.
The future of omnichannel customer service
With the rise of digital technology, customers increasingly demand personalized and efficient service across all channels. Thus, the customer service statistics mentioned clearly reflect this.
Businesses are turning to omnichannel customer service, a unified approach with great potential for improvement and innovation. According to PWC’s 2020 study, the number of companies investing in omnichannel customer service has jumped from 20% to 80% since 2012.
With omnichannel customer service, customer service representatives can strive for consistency across all channels so that customers don’t have to switch between channels.
The potential for omnichannel customer service is immense, and businesses should take advantage of it as this can amplify their customer service in the future.
Shape your customer service through outsourcing
Customer service statistics and trends can also help businesses make informed decisions about outsourcing.
Companies can better understand the customer service landscape through the available customer service statistics and trends. Further, there are a lot of advantages when organizations outsource their customer service.
Outsourcing customer service can be an effective way to save time and money and improve the efficiency and quality of customer service.
In fact, Clutch’s latest research shows that around 27% of small enterprises outsource customer service to work more efficiently.
Outsourcing customer service can give companies access to the latest technologies and a larger pool of experts. Businesses can free up energy and focus on their core products and services while enjoying an increased bottom line.
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