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Why Poor Customer Service Is Costing Businesses $3 Trillion

Customers demand better service, but companies keep failing. The price? Lost loyalty—and a staggering $3 trillion on the line.

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1 min read
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Why Poor Customer Service Is Costing Businesses $3 Trillion

Customer expectations are evolving, with service quality now being a significant factor in business success. A recent study shows that 91% of people prioritize customer service when choosing where to spend their money. However, despite this demand, more customers are reporting negative experiences with businesses.

In 2024, 38% of customers reported having more bad experiences with companies than in previous years. By 2026, that number had increased to 42%. This trend suggests growing frustration, even though 83% of customers still claim to be satisfied with the service they receive.

The stakes are high for businesses. Poor customer service now puts an estimated $3 trillion in revenue at risk. A significant 66% of customers admit they will stop using a company if the service is poor, even if they like the product.

Customers no longer judge service based solely on direct competitors. Instead, they compare every interaction to the best experience they've ever had with any business. This shift raises the bar for companies trying to meet expectations.

The study also highlights what matters most to customers today. Product quality remains the top factor at 96%, followed closely by trust at 95% and price at 94%. While convenience still plays a role, its importance has decreased compared to previous years.

Interestingly, 74% of customers believe delivering good service should be easy for businesses. However, the rising number of negative experiences suggests many businesses are struggling to meet this expectation.

The data reveals a clear gap between what customers expect and what they actually receive. With service quality now a deciding factor for 91% of shoppers, companies face pressure to improve. Failure to do so could cost them loyal customers and a share of the $3 trillion at risk.

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