106 Customer Service Statistics You Must See: 2021 Data & Analysis

A new version of this article, featuring the latest data and statistics is available. Check out our report on Customer Service Software Statistics for 2022.

Customer service continues to play a vital role in business. Companies are equipping their agents with the right knowledge and skills to let them meet customers’ needs. Just look at the most current customer service statistics, and you’ll see how much customer service has changed.

Companies invest in new technologies to give the best customer service possible. Hence, excellent customer service is now equal to improved customer experience. Checking out customer service market research will confirm this. But to provide excellent customer assistance, you will need to go for the most reliable customer service software.

COVID-19 has brought the entire world to a sudden halt. For corporate front-liners like customer teams, it has also compelled a paradigm shift on how organizations think about what customer service means. In times of crisis such as this pandemic, a customer’s interaction with a business can bring about a quick and lasting impact on whether she or he continues to be loyal or decide to switch to another brand.

Here, we have listed the most relevant customer statistics available. Read through the article and find ways to improve your customer service.

1. State of Customer Service Statistics

Customer service has kept its role in business growth. Hence, the rise in the customer service market size. Meantime, its importance has pushed companies into revisiting their customer service strategies. Most managers are trying very hard to address the effect of COVID-19 on their operations, and one of the most-affects is customer service.

Before, during, and after the ongoing pandemic, organizations will always focus on providing customers with the best customer experience possible. Here, we focus on general customer service statistics and how it has benefited both businesses and their clients.

• 90% of consumers worldwide consider issue resolution as their most important customer service concern. (KPMG, 2020)
• 63% of consumers see value as the main factor that differentiates one company from another due to COVID-19. (KPMG, 2020)
• 50% of Americans think that customer service continues to improve. (Microsoft, 2019)
• 80% of consumers expect brands to provide more efficient customer support during the coronavirus pandemic. (HiverHQ, 2020)
• 64% of US consumers contacted customer service in 2017. (Aspect, 2020)
• 47% of consumers around the world say companies should act on customer feedback. (Microsoft, 2019)
• 600% to 1,400% – The lifetime value of a customer experience promoter to a business compared to that of a detractor. (Bain, 2015)
• 63% of customers worldwide perceive that customer service continues to improve every year. (Microsoft, 2019)
• 55% of consumers from around the world say that they have higher customer service expectations than the previous year. (Microsoft, 2019)
• 75% of brands measure customer engagement but cannot define it. (HuffPost, 2017)

2. Brand Loyalty and Brand Building Statistics

Brand building is a very critical process, build your brand, and customers will come swarming. However, there is also the matter of establishing brand loyalty. Now, it is a fact that repeat customers boost revenue, which is what doing business is all about. Moreover, loyal customers that bring in more income is far better than looking for new customers. Just take a look at the following customer service data on brand building and loyalty and see how they have been impacting organizations.

• 75% of consumers expect agents to know who they are, what they have purchased, and to have insights into their previous engagements. (Microsoft, 2019)
• 89% of customers would have switched to brands that offer better customer engagement and experience in 2020. (Ameyo, 2016)
• 50% of customers who switched to another brand due to poor personalization think that the number of invasive ads is increasing. (Accenture, 2019)
• 66% of consumers are willing to disclose more of their personal data in exchange for a more customer-centric experience. (Accenture, 2019)
• 89% of customers view brands favorably if they proactively invite and welcome customer feedback. (Microsoft, 2019)
• Companies that use customer journey maps experience a significant 81% improvement in customer satisfaction. (MyCustomer, 2018)
• 73% of customers say they stay loyal to brands because of friendly customer service agents. (HubSpot, 2021)

3. Good Customer Service Statistics

More than knowing how bad customer service can hurt your business, you should be aware of how excellent customer service can elevate it. Customer service that comes with a unique customer experience is now the rave, with many consumers calling for outstanding customer service. Any timely customer service report will affirm this development. Read and find out how the following statistics reflect this development.

• A 5% rise in customer retention of merely 5% can result in a 25% increase in profit. (HubSpot, 2021)
• 67% of repeat customers are more likely to spend more with a brand because of excellent customer service. (HubSpot, 2021)
• 93% of customers are likely to make repeat purchases with businesses that offer great customer service. (HubSpot, 2018)
• 70% of previously dissatisfied consumers who had their problems resolved by customer service are willing to shop with the brand anew. (Mathew Sweezey, 2020)
• The cost of acquiring new customers is greater for brands that only allocate an insignificant amount of investment in customer service. (HubSpot, 2021)
• 85% of the time – The response rate of companies to customer service queries. (Microsoft, 2017)
• 35.2% of US customers give 5-star ratings mainly because of good customer service. (Netomi, 2020)
• 70% of previously dissatisfied consumers who had their problems resolved by customer service are willing to shop with the brand anew. (Mathew Sweezey, 2019)
• 31% of customers worldwide prefer talking with knowledgeable customer agents. (Microsoft, 2019)
• 85% of the time – The response rate of companies to customer service queries. (Microsoft, 2019)
• 50% of customers increase their purchasing with a brand after a positive experience with that company. (NewVoiceMedia, 2017)
• 68% of American consumers consider positive reviews tend to influence them to use a business. (Bright Local, 2020)
• 87% of consumers read online reviews for local businesses in 2020. (Bright Local, 2020)
• 72% of consumers share their good customer experience with others. (Salesforce, 2018)

4. Bad Customer Service Statistics

Everyone knows that poor customer service is terrible for business. However, just how bad is poor customer service for your company? You may consider today’s breed of customers impatient and demanding. However, customers drive your business and making their experiences with your company as great as possible should be your focus. Learn more about how bad customer service can affect your company by reading the stats below.

• 1/3 of consumers would consider switching companies after a single instance of bad customer service. (American Express, 2017)
• 58% of US customers have left a brand because of poor service. (Microsoft, 2019)
• 84% of consumers consider customer service to be a key factor when deciding whether to make a purchase or not. (Zendesk, 2019)
• 27% of US consumers say that the difficulty to reach a live agent is among their top frustrations with bad customer service. (Microsoft 2019)
• 36% of 18-34-year-old customers worldwide say that their greatest frustration is dealing with a poorly-informed/trained agent. (Microsoft, 2019)
• 28% of consumers say the most frustrating issue is simple but hard to find information. (Drift, 2018)
• 63% of American consumers have switched brands due to bad customer service. (Microsoft, 2019)
• 2/3 of consumers report that the most frustrating customer service aspect is waiting on hold or having to explain the same things to several reps. (HubSpot, 2018)
• 33% of Americans say they’ll consider switching companies after just a single instance of poor service. (American Express, 2017)

5. Customer Communications Statistics

The way consumers get in touch with businesses also plays a role in customer service quality. Companies have been increasingly using different communication channels to link up with customers. Here, we provide you with customer communication stats to fill you in on how customers are contacting businesses.

• Over 40% of companies’ Covid-19-related calls involved sharing customer frustrations. (Harvard Business Review, 2020)
• The number of calls rated as “difficult” have increased from 10% to 20% during the onset of the pandemic. (Harvard Business Review, 2020)
• 71% of consumers worldwide have used a telephone to contact customer service. (Microsoft, 2019)
• 54% of customers looked favourably on a brand that answered customer service questions via social media. (Microsoft, 2019)
• 66% – Percentage of customer service interactions worldwide that start with self service rather than with an agent. (Microsoft, 2019)
• 16% of customers worldwide use mobile devices for contacting customer service. (Microsoft, 2019)
• 49% of consumers have used 3-5 communication channels to contact customer service. (Microsoft, 2019)
• 54% of consumers worldwide favor brands that respond to customer service questions or complaints on social media. (Microsoft, 2019)
• 52% of customer service engagements around the world begin online. (Microsoft, 2017)
• 40% of customers prefer to talk to a real person over the phone for more complex interaction like payment disputes. (American Express, 2017)
• 86% of consumers expect companies to provide an online customer service portal. (Microsoft, 2019)
• 53% of customers worldwide prefer to use online self-service customer service channels. (Microsoft, 2019)
• 91% of consumers say customer service reviews influence their expectations of businesses. (Salesforce, 2019)
• 64% of customers prefer to communicate with businesses through email. (Salesforce, 2019)
• 43% of customers in the automobile insurance sector say it would be easier for a single service rep to manage claim processes. (Qualtrics, 2020)

6. Social Media in Customer Service Statistics

Social media has proven itself not only as a useful marketing tool, but it has also cemented its worth when it comes to customer service. The platform has become a top-rated channel for communicating customer service requests, a development that shows no sign of stopping. Below are some of the most current stats on the use of social media in customer service.

• 39% of customers spend more of their time on social media for various purposes such as customer service. (Valassis, 2020)
• 48% of customers expect companies to respond to social media queries within 24 hours. (Statista, 2018)
• 84% of US consumers who sent customer service requests through social media say they have received a response from the company. (Statista, 2018)
• 33% of US consumers do not expect a response to questions asked through social media. (Statista, 2018)
• 33% of US consumers have used social media to complain about a brand or its customer service. (Microsoft, 2019)
• 80% of consumers aged 18 to 34 say social media is an effective customer service channel. (Microsoft, 2019)
• 59% of consumers aged 35 to 54 have praised a brand or its customer service through social media. (Microsoft, 2019)
• 67% of consumers approve proactive customer service notifications. (Microsoft, 2019)

Best Customer Service Software

1. Freshdesk. This software has best-in-class customer service features that enable you to provide the best customer support possible to your consumers. This Freshdesk review offers more details about the platform.
2. Zendesk. Even if you choose the most economical plan of this software, you get access to great tools that enable you to provide the best customer service. Find out how you can use those features to the fullest in our Zendesk review.
3. Freshservice. A ticketing system plus quick access to a knowledgebase are only a couple of features this platform offers. You can find out more in our Freshservice review.
4. LiveAgent. This intuitive application empowers new users to maximize the solution’s capabilities from the get-go. Have a comprehensive look into the product through our LiveAgent review.
5. Vision Helpdesk. Improving customer assistance is a breeze with the monitoring features this solution offers. Our Vision Helpdesk review can show you what else you can achieve with this software.

7. Customer Review Statistics

Consumer reviews have become one of the most important factors affecting business growth. This, as customers’opinions have gained increased importance in brand building. Companies benefit from consumer reviews as they allow them to leverage customer feedback to boost profits. They are also critical to customer satisfaction, retention and loyalty. Here, we provide you with key statistics on how customer reviews have been impacting customer service.

• Consumer engagement in making product reviews has increased by 104% at the onset of the pandemic. (Power Reviews, 2020)
• 63.6% of consumers first check reviews on Google over other sites before making a purchasing decision. (ReviewTrackers, 2018)
• 31% of consumers say they started to read more reviews because of Covid-19. (Bright Local, 2020)
• 67% of customers will not use a business if reviews mentioned it doesn’t use COVID-19 health and safety measures. (Bright Local, 2020)
• 53% of consumers expect companies to reply to their online reviews within a week. (ReviewTrackers, 2018)
• 21% of consumers expect companies to respond to negative reviews within 24 hours. (MyCustomer, 2019).
• 17% of customers provide feedback when given the opportunity. (Microsoft, 2018)
• 15% – The percentage of customer churn from failure to reply to reviews. (Chatmeter , 2019)
• Consumers who have had bad customer experiences are more likely to make a review than those who had positive experiences.  (PowerReviews, 2020)
• 68% of customers have left a review for a local company when given the chance. (Bright Local, 2020)
• More than two-thirds of customers prefer brands that proactively connect and engage with customers. (Microsoft, 2019)

8. Millennials and Customer Service Statistics

Millennials have emerged as a top customer base, an opportunity that many companies have been exploiting. Targeting this age group makes for good business, considering their purchasing behavior. However, don’t get comfortable just yet, like most other age groups, millennials have their downsides. They are known for their sensitivity to lousy customer service. Find out more about this demographic by reading the statistics we have compiled.

• 70% of 18 to 34-year-olds believe their customer service expectations have risen. (Microsoft, 2019)
• US millennials are the only demographic that tells more people of good customer service experiences. (American Express, 2017)
• 31% of customers report reaching out to a business through Twitter. (Forrester, 2018)
• 80% of young adults say their perception of a brand improves if it responds  to social media inquiries. (Microsoft, 2019)
• 26% of customers rely on Facebook to contact customer service. (Microsoft, 2019)

9. Customer Service and CX Statistics

With all the developments in customer service, it is but fitting to find out how customers view current practices. The most notable of these is how most react to the experiences that they encounter when seeking customer service. Companies’ focus on CX and their recognition of customer experience management tools benefits have resulted in improved CX. Take a look at how customer experience has been affecting customers’ view of customer service.

• A single negative review can only be neutralized by around 40 positive customer experiences. (Inc., 2018)
• 62% of customers share their bad customer experiences with others. (Salesforce, 2018)
• 45.9% of businesses say that customer experience is their top priority for the next five years. (SuperOffice, 2021)
• 58% of consumers worldwide have stopped doing business with a company after a bad customer service experience. (Microsoft, 2019)
• 86% of consumers are willing to spend more to have a great customer experience. (PWC, 2020)

10. Customer Churn Statistics

When customers start abandoning their relationships with businesses, it’s time to push the panic button. For online companies, a customer is considered churn when a long period of time has elapsed since a customer has last transacted with the business. Customer churn is harmful to any business as it can involve increased marketing costs and revenue loss. Check out the following statistics on customer churn.

• 1 out of 26 unsatisfied customers complain. (HuffPost, 2017)
• 5.60% – The overall average churn rate across industries. (Recurly Research, 2020)
• 15% – The risk of increasing customer churn from not replying to reviews. (Chatmeter, 2018)
• B2C companies experience higher churn than B2B, at 7.05% versus 5.00%. (Recurly Research, 2020)
• 11% of customer churn can be prevented through company outreach. (HuffPost, 2017)
• The average voluntary churn is 4.21%, while 1.39% is the average for involuntary churn among SAS firms. (Recurly Research, 2020)
• 67% of customers churn can be prevented by resolving a customer issue during the first engagement. (HuffPost, 2017)
• 85% of customer churn stemming from poor customer service can be prevented. (HuffPost, 2017)

11. Customer Service and AI Statistics

Let’s admit it, there’s no stopping artificial intelligence (AI) from touching businesses–and customer service is no exception. Companies have been using AI to augment their customer service and automate tasks. Customer service agents have found an ally in AI, allowing them to abandon repetitive tasks and attend to more urgent matters. And then there are those ways to achieve real-time customer service, one of which is through the use of AI. Find out more how AI has been revolutionizing customer service in the statistics below.

• 52% of businesses intend to postpone or reduce AI investments because of COVID-19. (PWC, 2020)
• 36% of customers worldwide think that chatbots are ineffective. (Microsoft, 2019)
• 77% of instant responses come from online chat. (Drift, 2018)
• 82% among world-class firms are zeroing in on human experience using AI. (PWC, 2018)
• 51% of agents who do not use AI spend more time on mundane tasks. (Salesforce, 2019)
• 187% – The expected growth in the use of AI in the travel and hospitality sectors. (Salesforce, 2019)
• 82% of service industry executives say they need to transform customer service. (Salesforce, 2019)
• 62% of customers are open to the use of AI to improve their experiences. (Salesforce, 2019)
• 30% of consumers worldwide think that chatbots are highly effective. (Microsoft, 2019)
• 71% of Americans would rather interact with a human than a chatbot or other forms of automation. (PWC, 2018)
• 21% of American customers say that chatbots have been very helpful in resolving issues. (Microsoft, 2019)
• 55% of consumers say the greatest chatbot benefit is instant response time. (Drift, 2018)
• Chatbot effectiveness has slightly declined as only 28% of users are able to resolve their product or service issues. (Microsoft, 2019)

Customer Service: Points to Ponder

As customer service and customers themselves continue to evolve, businesses have no choice but to keep up with the times. Changes in customer preferences and attitudes have resulted in a renewed focus on the customer experience. Also, customer service channels have increased, allowing consumers to get in touch with companies from the comfort of their computers and mobile devices. Besides, there are methods for using AI in customer service, which is a growing trend among organizations. As a result, no business can claim not having received a specific service request, which further enhances customer service.

And then there is the use of new technologies that allow companies to address high volumes of concerns, upping customer service capabilities. For example, reaping customer service software benefits have improved the way businesses manage CX. Changes are meant to address the needs of a new breed of customers. Millennials, now a very important customer demographic, deserve their unique place in the customer service arena. Besides, changing customer behavior has made prompt and accurate customer service the new norm, making the process a crucial part of business competition.

Customer-related issues that are mainly due to COVID-19 have significantly exacerbated the intensity of customer anxiety and emotion during interactions with service teams. From requests for bill payment extensions to unanticipated air travel cancellations and arguments over insurance coverage, these issues had made jobs that are already difficult for agents on a regular shift had become more demanding.

After reading our customer service statistics compilation, we expect you to be able to improve the way you manage your customer service. You may also find customer support stats very useful to your organization. Additionally, you will have developed a better appreciation of statistics. Insights derived from this information can be used to boost customer service by being able to know who you are serving and what your competitors are doing.

References:

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By James Anthony

A senior FinancesOnline writer on SaaS and B2B topics, James Anthony passion is keeping abreast of the industry’s cutting-edge practices (other than writing personal blog posts on why Firefly needs to be renewed). He has written extensively on these two subjects, being a firm believer in SaaS to PaaS migration and how this inevitable transition would impact economies of scale. With reviews and analyses spanning a breadth of topics from software to learning models, James is one of FinancesOnline’s most creative resources on and off the office.