The danger in hostage marketing

Share this content:
Ernan Roman
Ernan Roman

The customer service experience is get­ting worse. Results from our Huffing­ton Post study indicate serious problems.

Only 32% report that their customer service call center experience was positive. For the balance: 47% had a negative experi­ence and 21% were neutral.

This quote aptly reflects the frustration: “I daydream about suing them. From the product to the reps, they just don't care about their customers.”

Most troubling is that customers realize that they are treated poorly because firms think of them as hostages: “We are hostag­es, unable to go elsewhere”; and “I would be done with most of these companies if I had any choice in the matter.”

The impact of these experiences on three critical business metrics is major. Decreased likelihood to buy from the company: 64%. Creates a negative perception of the company: 85%. Decreased likelihood to recommend the company: 77%.

More than 64% would stop buying from the company if they were not “hostages,” with few or no alternatives.

There were clear rewards for providing a positive call center experience. Likelihood to buy from that company: 94%. Positive perception of the company: 94%. Likeli­hood to recommend the company: 86%.

Given the significant impact of a posi­tive experience, it is incomprehensible that companies do not invest in appropriate training and resources for their customer service call centers.

Given that it's seven to 10 times more expensive acquiring new customers versus selling to existing customers, companies should view their customer service center as a revenue and profit center, rather than as a cost center where they can save money. Post-sales experiences have a major impact on the likelihood of repeat purchases.

Calculate the financial cost of lost busi­ness resulting from poor customer service. Do not cut back on training, quality con­trol procedures and investment in cus­tomer service centers. Positive customer service experiences solidify the relationship with customers.

Customers expect quality care, whether the center is in-house or outsourced.


Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above