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What is customer service?

To understand customer service, it is important to first define what customer service means.

Customer service is essentially providing help and assistance to customers before and after a purchase. It applies to both prospective customers and existing customers.

Why Is Customer Service Important?

Good Customer Service is Important to Growing your dropshipping businessspan size=”font-weight 400 ;”>. The following statistics on customer service will demonstrate the importance of good customer service in marketing and sales, as well as your brand image.

Due to the interconnectedness, a single bad customer service experience could result in the loss of loyalty to brands and customers.

If you’re prepared, let’s get straight to the 10 customer service statistics that you must know by 2023!

1. Global Customer Experience Management Market Size

Let’s start by looking at the size of the market for customer experience.

Fortune Business Insights reported that the global customer experience management market was valued at $11.34 billion by 2022. (Fortune Business Insights 2022). The market value was $10.11 billion, up 12.2 percent from 2021. It is expected to reach $32.53 billion in 2029.

The market will not only continue to grow, but it will also maintain this impressive rate of growth. The compound annual growth (CAGR), which is projected to be 16.2 percent, will occur from 2022-2029.

The increasing number of companies adopting artificial and augmented realities to enhance the buyer’s experience is driving this growth. Brands are investing more in tools and technology that will help them grow. They recognize the importance of good customer service to retain customers and increase company visibility.

2. Customer service influences purchase decisions

Do you believe that customer service is only for solving problems with new customers? Here’s some statistics to prove otherwise: 81% say that a positive experience in customer service increases their chances of making a second purchase (Zendesk 2022).

This means that good customer service is important from the initial prospecting phase before consumers make any purchases to far beyond. It can also be influential enough to discourage buyers or encourage them to keep buying from you.

Today, the majority consumers consider customer service as one of the factors that influences their buying decisionsspan size=”font-weight 400 ;”>. 70% of consumers have made a purchase based on the customer service they received. Approximately 78 percent will switch brands if their experience is bad.

3. Customer Service is the Key to Brand Loyalty

When you are setting up the customer service for your brand, keep in mind that good service should not end after the sale.

Good customer service can help build trust with your customers. This next statistic shows that it’s a great way to encourage customers to come back and increase your lifetime value.

94 percent of consumers state that they are more likely to buy from a brand if the customer service is good (Salesforce 2022). It’s so bad that 80 percent say they are willing to forgive a company for mistakes if it provides excellent customer service.

You may consider providing excellent customer service in order to keep your current customers coming back.

4. Human Touch: It’s Important

In spite of the digital age we live in, a large number of customers still prefer human interaction when dealing with customer service.

A study found that 36 percent of customers prefer to wait until they can speak to a human when seeking customer support (CSG International 2022). Despite the existence of automated solutions such as AI-powered virtual assistance, this is still true. 83 percent of people who contact a business expect to be able to speak with someone right away.

While businesses can use automation and technology to solve customer service issues, they should also have human representatives on hand to help them when necessary. As we will see in our next customer service stat, not providing this option can lead frustration and be costly to businesses.

5. The Cost of Poor Customer Services

You should pay attention to the following statistic if you have ever wondered, “Why customer service is important?” as an ecommerce business owner.

Customer service is less forgiving than baseball, where the rule “three strikes” means you’re out. After a bad customer service experience, more than six out of 10 consumers will switch to another company (Zendesk 2022).

The importance of good customer service is emphasized by the fact that customers will switch brands after a single bad experience.

6. Poor customer service is the worst.

Automated telephone systems are the bane for all customer service experiences. More than half of all consumers (56%) cite it as the worst part of a poor customer service experience.

The frustration of customers with automated systems is largely due to the difficulty in contacting a human agent. This, as we have seen in a previous section, is still a very important factor in their eyes.

Apart from automated phone systems, other aspects of customer support that are disliked include being only able to contact customer support during certain hours and repeating the same information repeatedly. HubSpot’s survey shows that customers dislike the automated telephone systems so much, that they would rather “hand out parking fines.”

7. The best aspect of good customer service

The next statistic on customer service shows that time is crucial when solving problems.

A third of consumers believe that the best customer service experience is to solve their problems in one sitting, regardless of how much time they spend (Statista 2019).

This shows that most consumers prefer to resolve their issue on the spot, rather than have to contact them again later.

It even beats dealing with knowledgeable representatives of customer service, which a relatively smaller (31%) percentage of global consumers says is the most significant aspect of a positive customer service experience.

8. Poor Customer Service Experiences Are Shared

You’ll want your brand to be protected by avoiding even a single bad customer service experience.

The word-of-mouth method of marketing has two sides. Word-of-mouth marketing can be both a powerful tool to drive sales and boost marketing, but it can also have the opposite effect, especially when it is a result of a bad customer service experience. A report by Salesforce (2018) shows that 6/10 consumers will share their negative experiences.

As an additional incentive to invest time and effort into customer service the same survey shows that 72 per cent of customers share positive experiences with others. Do your customer service right and you will get a boost in reputation simply through word-of-mouth.

9. Customers prefer to contact customer service via phones

Today, most people send an email ;”>, or use social media to communicate with their family and friends. Customer service is one area where this trend has not yet taken hold.

A study of buyer behavior in 2022 shows that nearly three-quarters (59%) of consumers still prefer to use the traditional method of calling customer service representatives. (Salesforce 2022). Phones are the preferred channel, followed by emails (57%) and in-person (46%), as well as online chat (42%) ).

The proportion of customers who prefer to call customer service has actually increased in the last couple of years. In the same study conducted two years earlier, it was found that 54 percent of consumers prefer to call customer service in 2020 – five points less than in 2022. The percentage of customers who prefer to email customer service in 2020 was higher – 65 percent.

10. Customers Will Pay More For Good Customer Service

You can raise prices slightly if you provide good customer service. This statistic will prove it: 68 per cent of consumers are willing to pay more for products or services from brands that offer excellent customer service (HubSpot 2019).

It is important to consider the increasing expectations of customers – 46 per cent of those surveyed said they expected more customer service in the past year. They are also demanding faster and more efficient resolutions of problems, the elimination of repetition, and a fluid, irrespective contact channel, process.

Keep in mind that customers often complain about being treated as if they were cases and receiving contradictory answers when dealing with various representatives.

Conclusion

These customer service statistics should have helped you understand the importance of customer service and how to provide your customers with a great experience.

Good customer service is a must for your business.

Are you looking for some great ideas to improve your customer service? is the place to start!

Summary of Customer Service Statistics

Here is a summary of Customer Service Statistics that you should know by 2023:

In 2022, the global market for customer experience management will be worth $11.34 Billion.
81 percent of customers say that a good customer service experience will increase their chances of making another purchase.
After a positive experience with customer service, 94 percent of consumers say they are more likely to purchase from that brand again.
Despite automated solutions being available, 36 percent still prefer to speak to a person.
Sixty-one percent of consumers will switch to a rival after a single bad customer service experience.
Over half of consumers believe that automated telephone systems are the most frustrating aspect of poor customer service.
A third of customers say that the ability to solve their problem in one session is an important part of good customer service.
Six out of ten consumers share their bad shopping experiences.
A majority of consumers (59%) prefer to contact customer service via telephone.
Sixty-eight percent of consumers would be willing to spend more for better customer service.

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Author: Ying Lin

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