Bad Customer Service: Seven Ways to Identify and Fix it

Six in 10 Americans will walk away from a brand they actually like if it consistently delivers bad customer service — with almost two in 10 not giving it a second chance at all!  

Don’t give your customers a reason to switch — at least not because of bad customer service. When it comes to customer service, your customers are smarter than ever. They know what good service is because the best companies have taught them.  

Companies like Amazon, Apple, Nordstrom, The Ritz-Carlton and others that are recognized as customer service rock stars in their industries promise great service — and they deliver. As a result, they have educated your customers on what they can expect when they deal with an excellent company. 

Another thing to note is customers no longer compare you only to your direct competition. They compare you to the best service they have ever received from anyone. That could be the aforementioned rock star companies or maybe it’s a small business they encounter in their work or in their personal lives. If you think you only must be better than your direct competitor, you may be wrong. Sure, it’s good to be better than your competition, but the benchmark may be set by companies outside your industry. These companies have given your customers their customer service education. 

In short, you don’t get to decide if your customer service is good, decent or bad. Your customer is the judge and the jury.  

Nonetheless, there are ways to avoid the pitfalls that signify terrible customer service and its aftermath. Issues are hidden opportunities; you need to know how to identify them and what could be done about them. Before we go ahead dissecting bad customer service, its impact, real-life examples and how to fix them, let’s start with the basic definition of bad customer service.  

What is bad customer service?   

Bad customer service is when a business or an organization fails to meet customer expectations in terms of product or service quality, response time and overall customer experience. 

Poor customer service can arise from several reasons, but it’s mostly characterized by tell-tale signs like: 

• Prioritizing company policies over customer needs 
• Hard-to-reach agents 
• Impersonal, unempathetic tone of voice 
• Slow response 
• Mismanaged social customer care 
• Ignored customer feedback 
• Disjointed support experience 
• Lack of accountability 

It’s like being stuck in a never-ending queue at the airport security check during a holiday rush. Well, some may say it’s an airport, combine it with a holiday, what do you expect? Truth is customers will expect a smooth experience, it doesn’t matter if it’s a normal day or a holiday. Failure to meet those expectations means bad customer service. 

Poor customer service is often characterized by a reactive approach where issues are only addressed as they arise, leaving customers feeling neglected. Circling back to our airport example. Communication is poor, with unclear instructions and minimal updates, the staff is unfriendly or indifferent, leaving customers stranded and dissatisfied.  Many vent out on social media and review platforms, finally drawing the airline’s attention that reacts too little, too late. This is a classic example of terrible customer service.  

The airline’s brand reputation is irreversibly ruined, and it lost the goodwill and trust of loyal customers– huge costs to pay in a hypercompetitive business ecosystem where customers are spoilt for choice.  

Impact of bad client service  

When customers are at the receiving end of bad service, their reaction can range from mild irritation to extreme public backlash, due to which companies face the following repercussions:   

1. Brand health takes a hit 

A bad customer experience is like a spark in the forest which has the potential to set the whole forest on fire. As per a survey, 33% of customers use their social media presence to vent their anger via negative reviews and ranting tweets. These posts become discussion points amplifying the message of how bad you are as a brand, driving away potential customers. Also, negative reviews have a long life and they stay on aggregator sites for a long time. 

👉 Learn More: How Should Brands Manage Their Online Reputation 

2. Customer retention becomes difficult 

Roughly six in 10 Americans will walk away from a brand they like if it consistently delivers poor customer service. This indicates that even established loyalty is fragile when service quality falters. Remarkably, almost two in 10 won't give the brand a second chance at all, highlighting the critical need for consistently positive interactions.

This statistic manifests a fundamental truth for all businesses – even a well-established brand cannot rely solely on its reputation to retain customers.  

Loyalty is not a static asset. It must be continuously earned through consistent, high-quality customer service.   

3. Overall revenue takes a hit 

Bad customer service directly leads to fewer sales as existing customers leave and potential ones avoid the brand. Agitated customers often head straight to your direct competitors and never return (especially Boomers, per our analysis). Sometimes, competitors use social listening to home in negative reviews and jump in at opportune times to poach your customers/leads. Consequently, revenue and market share suffer. Decreased revenue impacts overall profitability, undermining financial stability and growth prospects. 

4. Low lead conversion 

When your brand reputation takes a hit, people who were previously interested in your products or services will shy away from signing on the dotted line, eroding your lead generation efforts.  

5. Operational costs go overboard 

Poor customer service drives up operational costs due to increased time spent handling complaints, processing refunds and managing escalations. Repeated issues require additional resources to resolve, leading to higher staff turnover and training expenses. 

👉 Learn More: Reduce Costs & Agent Workload with Self-Service Portals

Bad customer service vs. good customer service  

The repercussions of bad customer service are horrifying, isn’t it? To avoid them, one of the basics you need to know is the difference between good customer service and bad customer service.  

Three real-life examples of poor customer service 

Poor customer service can turn a simple interaction into a frustrating ordeal, leaving customers feeling undervalued and disrespected. Here, we explore real-life examples of customer service blunders, shedding light on how these mistakes can seriously impact a brand’s reputation and customer loyalty.  

1. When insurance guarantees fail, trust erodes 

Andrew Karaman shared his story of bad customer service on Quora, recounting how he shipped a few radiation detectors from the UPS store. Because the instruments were fragile and expensive, he insured the shipment for $10,000, costing him over a hundred dollars. Three days later, Andrew received an email from UPS staff informing him that the package had been damaged and the detector had broken, with attached photos as evidence. It took a few months for the damage to be fixed and cost him $360. 

Expecting a refund due to the insurance, Andrew visited the UPS website to find information on filing an insurance claim but found nothing. Seeking answers, he went to the local UPS store, where staff directed him to contact UPS Customer Service. With no live chat available on the website, Andrew sent an email describing the incident. This began a frustrating month-long process, with UPS repeatedly asking for more information and photos. 

Exhausted from waiting, Andrew eventually called customer support. The situation worsened as he was bounced from one representative to another, re-explaining his story multiple times. Finally, he reached someone who refused to honor the insurance claim, with no alternatives or opportunities to appeal. Frustrated and disappointed, Andrew vowed never to ship with UPS again, a sentiment reflecting the severe impact of poor customer service on customer loyalty. 

Consequence: This negative experience cost UPS not only a loyal customer but many more potential ones. The brand lost consumer trust and brand reputation when the incident came to light.  

2. When online and offline contradict each other 

A major telecom provider promotes a special unlimited data plan on its website, but when customers visit its store and call customer support, they receive contradictory information about data limits and pricing. The store clerk insists the plan includes a data cap, while customer service on the phone confirms it does not. 

Consequences: Customers are confused and frustrated by the conflicting details, which leads to higher-than-usual plan cancellations and disputes. The telecom provider faces increased customer churn and dented credibility. 

📲 A Pro-tip to Harmonize Your Customer Service Across Channels    

Keeping up with customers hopping through multiple channels needs vigilance and attention. Be at ease by deploying a powerful contact center as a service (CCaaS) solution that unifies all your customer service channels. 

3. Avoid bureaucratic processes when resolving customer issues 

A customer at a national bank encounters a minor error in their statement and needs it corrected. To address the issue, they must navigate through an automated phone system, submit a written request and visit a branch, each step involving long waits and repeated explanations of the issue. 

Consequences: The lengthy and cumbersome process frustrates the customer, leading to a loss of trust in the bank's efficiency and a decline in overall customer satisfaction.  

Common reasons for bad customer service and their fixes 

To err is human, to correct it is divine! Now that you understand what bad customer service is, let’s delve further and learn how to fix common customer service failures. 

1. Prioritizing company policies over customer needs 

Rigid, company-centric policies can hinder personalization of the support experience and turn it into an impersonal affair. As a result, customers might end up feeling like a mere number, not a valued person. It in turn dwindles their emotional investment in your company and offerings. They will easily move to any competitor who offers them service with a human touch.  

👉 Learn More: How to Preserve the Human Touch in Customer Service

How to fix it? 

Build flexible support policies prioritizing customer satisfaction over success metrics. Adapt your policies for reasonable customer needs and build a customer-centric culture that percolates top-down in your organization.  

👉 Learn More: What Is Customer Centricity and How to Build It    

2. Hard-to-reach agents 

Customers often struggle to reach support agents due to factors such as limited availability, inefficient routing systems, long wait times and inadequate staffing. This can lead to increased frustration, dissatisfaction and a negative perception of the company.  

How to fix it? 

Offer support through different customer service channels such as phone, email, chat and social media to accommodate different customer preferences. Ensure adequate staffing during peak hours to handle high volumes of inquiries and leverage skill-based routing to direct customers to the most appropriate agent or department.   

3. Impersonal, unempathetic tone of voice 

An impersonal and unempathetic tone can occur due to lack of proper training, high-stress environments or agents being focused more on resolving tickets quickly rather than understanding customer concerns.  

How to fix it? 

Conduct regular training on empathetic communication and active listening to ensure agents understand the importance of a personal touch. Review and provide feedback on agent interactions. It ensures your agents align with customer empathy and personalization standards. Provide a supportive work environment to reduce stress and improve agent well-being, enabling them to engage more positively with customers.  

👉 Learn More: 13 Customer Service Phrases to Win Over Customers  

4. Slow response 

Slow responses can be caused by high inquiry volumes, inefficient processes, lack of prioritization and insufficient use of automation. This can frustrate customers and create a perception of inefficiency and neglect. 

How to fix it? 

Define and communicate service level agreements (SLAs) for response times and adhere to them to set customer expectations. Implement chatbots and automated responses to handle routine queries quickly and efficiently. Use a priority system to address urgent and high-impact issues more quickly.  

5. Mismanaged social customer care

Mismanaged social customer care can result from inconsistent monitoring, lack of dedicated resources and unclear protocols for handling social media interactions.  

How to fix it? 

Use a unified platform to monitor and respond to social media inquiries from one place, ensuring consistency. Establish clear protocols and guidelines for social media interactions to ensure timely and appropriate responses.  

👉 Learn More: How to Implement Social Media Customer Service Successfully

6. Ignored customer feedback

Customer feedback is often ignored due to a lack of a structured feedback management process, insufficient analysis or failure to act on insights.   

How to fix it? Use customer surveys, behavior analytics and direct communication to gather customer opinions systematically. Leverage customer feedback management techniques to analyze feedback. Implement changes based on customer suggestions and insights. Follow up with customers who provided feedback to let them know how their input has been used.  

7. Disjointed support experience 

A fragmented support experience can occur due to siloed systems, inconsistent information and lack of integration across support channels.  

How to fix it? Use a centralized customer support platform to provide a seamless experience across all channels and touchpoints. Develop standardized processes and a comprehensive knowledge base to ensure consistent information and service.    

💡 Did you know? 

Successful companies leverage data and insights to understand their customers deeply. They use advanced tools and technologies to track customer interactions, predict satisfaction levels and identify potential issues before they escalate.  

90% of such companies use Sprinklr's AI-powered reporting and analytics solution that goes beyond measuring customer service metrics. With Sprinklr, you can visualize your data with relevant dashboards, gaining valuable insights into customer behavior and engagement.   

Check the dashboard below: - 

The dashboard breaks down the tickets raised by customers and segregates them by pain points, tracking trends across a specific timeframe. For a contact center, this report is invaluable since it simplifies reporting for various clients.   

If you use Sprinklr's analytics and reporting software, you get access to many such customer interaction analytics and reports – standard and curated specially for your brand, audience and goals. 

Sign up for a free trial today and experience the power of AI-driven analytics first-hand 👇. 

START YOUR FREE TRIAL

Ready to elevate your brand with better customer service?  

If it’s your aspiration to become a customer service legend like Ikea, Starbucks and Apple, you will need to optimize your customer service process, people and tools.  

Exceptional customer service is a product of strategic personalization, customer engagement and comprehensive feedback management, driven by comprehensive customer service solutions like Sprinklr Service.  

With customer-centricity built into its core, Sprinklr powers 9 out of 10 leading enterprises to deliver memorable customer support experiences on the back of:  

📈 Advanced analytics to gain deep insights into customer behavior, enabling data-driven personalization.  

🔄 Generative AI-enriched experiences, ensuring human-like support and hyper-personalization. 

🌐 Seamless omnichannel support, managing interactions across 35+ platforms from one interface.  

🔍Quality management helps assess service quality and measure agent performance. 

Impressive, isn't it? Transform your customer service with Sprinklr today and make your customers fall in love with your brand. Click the button below to start your journey with a FREE 30-day trial of Sprinklr today.