Each lost customer costs small businesses £4,910

A nationwide survey carried out for T-Mobile, has revealed that, on average, small firms are missing out on £4,910 of profit for each lost customer. Small businesses are therefore suffering significantly reduced profits due to losing customers.

The survey identified that a lack of responsiveness is viewed as the biggest cause of poor customer service. Key survey findings are;

• Each lost customer costs small businesses £4,910

• 37% state that lack of responsiveness is to blame for poor customer service

• 90% of small businesses aim to reply to customer calls and emails within 24 hours
• Small Business Owner Managers spend, on average, 37% of their time away from the office

• Over a fifth of small businesses believe that mobile technology increases responsiveness by more than 50%

In examining the approaches taken by small firms to customer communication, 88% reply to customer emails and 93% return customer calls within 24 hours. A third of businesses respond to customer complaints immediately.

While 56% of respondents stated that they believe small businesses are best at providing customer service, Derek Williamson, Head of Business Marketing at T-Mobile UK, warns that to remain competitive, speed of response should be re-considered.

“Evidence suggests that larger competitors are much quicker to respond to customers and this is a significant threat for small businesses. An immediate response to customers is the ideal but small companies should, at the very least, examine ways in which queries, either via email or phone, can be replied to within a maximum of one to three hours.”

He adds, “By their very nature, small businesses are highly adaptable and are ideally placed to capitalise on the customer service opportunity. But at the same time resources can be limited. Therefore, it’s important to consider how technology, especially internet enabled mobile devices, can be used to ensure that customer relationships are never jeopardised through a lack of responsiveness.”

On average, Small Business Owner Managers (SBOMs) spend 37% of their time away from the office and for those that have access to mobile technology, the ability to respond to customers (35%) and progress emails (24%) whilst on the move are the two key benefits. Over a fifth of small companies (24%) stated that mobile technology had increased responsiveness by more than 50%.

Although 62% of small firms invite customers to provide feedback on their services or products, just a fifth (20%) provide their staff with customer service training. Similarly, 55% do not conduct any research or analysis to monitor changes in customer needs.

“Superior customer service is not a mysterious art that only large firms with thousands of employees can ever hope to deliver. By focusing on a commitment to delivering great service by exceeding expectation, small businesses can, not only compete, but thrive,” concludes Williamson.