Can Word of Mouth Win Back A Lost Customer?

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Customer service software giant Kayako recently carried out a survey in which 1000 customers were asked if they would ever return to a company after a terrible service experience when the brand was recommended again by a trusted peer.

The customers were asked:

You’ve received bad customer service from a company in the past. How likely would you be to try them again if a trusted friend recommended them based on incredible service?

The findings of this experiment are exciting and insightful, and you might have to re-think what you already know about word-of-mouth and customer service. Here are the key findings  –

#1. Positive word of mouth seems to mean very little once a customer has already had a bad experience.

Almost 60% of consumers were unlikely or very unlikely to return to a business they had experienced poor customer service from, even if a trusted friend said the service had improved.

Only 12.5% of consumers said they would be likely or very likely to try a company again.

Image: kayako.com

#2. Age Differences Matter

Age had a subtle effect on whether people would be more likely to return to a company after poor service based on peer recommendation. The experiment found that millennials are less skeptical and more willing to consider the opinions of their peers.

Image: kayako.com
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Customers are becoming less tolerant of poor service, and when they make up their minds to switch to competition, not even peer recommendation can bring them back.

It is only in a Monopoly that organizations can get away with terrible service, as consumers have little or no choice. But even at that, such service gap leaves the organizations vulnerable, as potential competitors can exploit this with a value proposition that offers consumers high-quality service (pre & post sales).

See also  How To Handle Service Failure

Read: 15 Steps To Great Customer Service [Video]

 

Kelechi Okeke
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