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Magnetic North research reveals the cost of poor customer service

Poor customer experience is costing UK brands at least £234 billion a year, as customers abandon online purchases in frustration and take their business elsewhere, according to new research from cloud-based contact centre solution provider Magnetic North.

New report reveals the impact of poor customer service on consumer buying behaviour.
New report reveals the impact of poor customer service on consumer buying behaviour.

The report, Customer Experience to Revenue, explores the impact that poor customer service is having on consumer buying behaviour across multiple market sectors. It reveals that 92% of consumers have had a poor customer experience and one in three have acted on their frustration by abandoning a purchase because they couldn’t find the information they needed.

The research highlights a preference for dealing with businesses via the web, with 62% preferring to research online and 69% preferring to make a purchase online. The web is also the preferred channel for negative feedback, with 41% of consumers preferring to make complaints online, compared to 24% on the phone, showing that brands need to make the whole customer experience multichannel right through to the feedback process.

UK consumers are not just abandoning one-off purchases, they are also switching long-term allegiance as a result of poor customer service. Almost half (46%) of consumers have moved to a competitor because of poor customer service. Top reasons for switching to a competitor include difficulty finding out how to contact customer service (71%), waiting in contact centre queues with no call back option (66%) and dealing with a contact centre agent who has no knowledge of the customer’s previous interactions (66%).

Commenting on the research, David Ford, Managing Director of Magnetic North, said: “The customer experience landscape has changed, customers now hold the power and they won’t hesitate to take their business elsewhere if brands can’t meet their demands. Businesses will have to adapt to becoming more customer centric in order to stay competitive.”

The Magnetic North report, Customer Experience to Revenue is available for free download now at

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