by Erik Abrahamyan
BDO Armenia is a member of BDO Group of Companies. BDO runs over 1,264 offices in 144 countries around the world and is considered the fifth largest corporation in the world. BDO Group of Audit Companies has carried out a survey to find the bearing of poor customer service on financial performance of companies.
The "Service 2020: Return on Service" study by BDO was published in prestigious The Economist. The study, for the first time, reveals the link between the good customer service and strong financial performance.The poll surveyed 832 leading companies in Europe, North America and Asia. Almost 59% of survey respondents say a customer service failure has had significant financial impact on their company, according to the report.
The poll shows poor service quality has made 27% of respondents lose customers; 15% had their stocks dropping and 23% had to offer compensation to clients.
Some 84% of the companies surveyed said customer service is either very or moderately important to their financial performance but they still struggle to recognize and measure its impact.
Customer service is under-represented at board level, and globally only 28% of companies have a head of customer service on the board. Customer service operations are often represented by the heads of sales and marketing or human resources. Another issue for company leaders is that executives do not see being customer-focused as especially helpful to their careers.