Businesses Failing to Face Ugly Truth of Their Customer Service Shortcomings, Research Finds

CAMBRIDGE, Mass., May 15, 2019 /PRNewswire/ -- Businesses are out of touch with their customers and overestimate the quality of the customer service they provide, according to new research from Pegasystems Inc. (NASDAQ: PEGA), the software company empowering digital transformation at the world's leading enterprises. Research firm Savanta surveyed 12,500 global customers, businesses executives, and customer-facing employees for a one-of-a-kind, three-dimensional perspective on the state of customer service today.

The research identified key customer service frustrations and revealed that many businesses don't know their customers well enough to provide the level of service their customers want. It also found that many organizations aren't fully committed to providing the level of service they aspire to and run the risk of losing customers to competitors as a result. The good news? Customers, employees, and business leaders all agree on what matters most, so a clear roadmap exists. Key findings of the study include:

    --  Business decision makers are out of touch: Four times the percentage
        business leaders (40 percent) as customers (10 percent) rate the current
        standard of customer service as 'excellent,' while only 23 percent of
        customer-facing staff rate their organization's service the same way. 
        Similarly, an overwhelming 89 percent of decision makers and 73 percent
        of employees feel their organization provides an overall positive level
        of customer service, but only 54 percent of customers feel the same way.
        In addition, 71 percent of business leaders think they provide better
        customer service than their competitors - a number that is
        mathematically impossible to achieve.
    --  Are businesses really committed to providing good customer service?
        While 81 percent of business decision makers consider customer service
        as either their main or key competitive differentiator, 33 percent of
        customer-facing employees say they face no consequences for providing
        bad customer service. Meanwhile, 48 percent of customer-facing employees
        say they face barriers to providing good service.
    --  Poor service is driving customers mad: 88 percent of customer-facing
        employees say that customer service is a priority within their business,
        but the customers tell a different story. Only 11 percent of consumers
        say contacting customer service is an enjoyable experience. Of those who
        are dissatisfied, 63 percent would rather clean the toilet than contact
        a customer service team. Only 10 percent say their typical customer
        service experience is 'excellent.'
    --  Customers feel like organizations don't know them well enough: Despite
        87 percent of business decision makers believing they know their
        customers well, the vast majority of consumers feel differently. Just 23
        percent of consumers say businesses understand them as a person and
        their customer service preferences 'extremely well,' while 63 percent
        think organizations should make getting to know them better their top
        priority.
    --  Poor customer service can cost businesses customers: Seventy-seven
        percent of customers agree the standard of customer service they receive
        is a major determining factor in their brand loyalty. In addition, 89
        percent say receiving poor customer service from a business damages
        their impression of the brand. Significantly, 75 percent also say they
        have previously stopped doing business with an organization because of
        poor customer service. Forty-four percent report that if they receive a
        negative customer service experience, they immediately stop the purchase
        and move to another vendor. Despite this, only 35 percent of business
        decision makers say they lose customers 'all the time' or 'fairly
        regularly' as a result of providing poor customer service.
    --  Customers know what they want: Consumers highlighted specific areas of
        frustration within customer service -- providing businesses with a clear
        roadmap for improvement.  Their top three frustrations include taking
        too long to receive service (82 percent), having to repeat themselves
        when switching between channels or agents (76 percent), and not knowing
        the status of the query (64 percent). When asked what made for a
        positive customer service experience, 59 percent agree that a quick
        resolution of their issue or question mattered most, followed by a need
        for knowledgeable service agents (48 percent) and a fast response (47
        percent).

Quotes & Commentary:

"Good customer service can be the difference between success and failure. This study tells us that organizations still have a long way to go before they are able to fully meet the expectations of their customers," said Tom Libretto, chief marketing officer, Pegasystems. "The good news is that there is overall agreement on what matters most. Solutions are available to help businesses understand and proactively address customer issues, while also arming customer-facing staff with the tools they need to provide more contextual, relevant, and knowledgeable service. Customers win, employees win, and positive business outcomes are delivered as a result.

Supporting Resources:

    --  Read 'The good, the bad, and the ugly: 2019 global customer service
        insights' report here: www.pega.com/2019-customer-service-insights

Notes
Pega surveyed three audiences to get a three-dimensional perspective on the state of customer service being provided today. The results include responses from 7,000 consumers, 3,600 employees, and 1,900 decision-makers from across the globe, including the United States, United Kingdom, France, Germany, the Netherlands, Japan, and Australia.

About Pegasystems
Pegasystems Inc. is the leader in software for customer engagement and operational excellence. Pega's adaptive, cloud-architected software - built on its unified Pega Platform(TM) - empowers people to rapidly deploy, and easily extend and change applications to meet strategic business needs. Over its 35-year history, Pega has delivered award-winning capabilities in CRM and digital process automation (DPA), powered by advanced artificial intelligence and robotic automation, to help the world's leading brands achieve breakthrough business results. For more information on Pegasystems (NASDAQ: PEGA) visit www.pega.com.

       
              Press Contact:       
     
              Press Contact:



       Jon Brigden                     
     Sean Audet



       Pegasystems                     
     Pegasystems



       
              jon.brigden@pega.com 
     
              sean.audet@pega.com



       +44 (0) 118 9398 584            
     617-528-5230



       Twitter: @pega                  
     Twitter: @pega

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SOURCE Pegasystems Inc.