It’s a proven fact: when every business is fighting for attention, it’s service that separates the good from the great, that separates those that thrive from those that disappear. According to a PwC study, 73% of consumers say customer experience is a key factor in their purchasing decisions.
Customer service is no longer just a support function – it defines how your brand is perceived, valued and ultimately chosen. It has become a defining factor in purchasing decisions, and a widely understood marker of long-term value. A single bad interaction can spiral into a viral complaint, and a lack of follow-through can lose a customer forever. Yet, despite this, many businesses still underestimate the cost of poor customer service.
Mark Mitchell, Chief Client Officer at Ignition CX, has spent decades helping brands navigate the ever-changing customer experience landscape. His view is simple: neglect CX and it will cost you.
“In the early days, customer service was seen as a cost centre – something you had to do, but didn’t want to invest in,” he says. “That mindset cost businesses more than they realised. Over the years, I’ve seen time and again how poor customer experiences directly drive churn, damage reputation and stall growth.”
And the numbers back him up. According to a report from PwC, 32% of customers will stop doing business with a brand they love after just one bad experience. Add the rising cost of acquisition into the mix, and it becomes clear: keeping your existing customers happy isn’t just good service – it’s good business.
What is bad customer service?
Not feeling heard
Customers want to know that their concerns matter. They want to be heard. When a business responds with scripted replies or shows little emotional awareness, it sends the message that no one is really listening. Without empathy, even a small issue can feel like a major slight, and that feeling lingers long after the interaction ends.
Time wasted is trust lost
Every minute a customer spends waiting, whether on hold, refreshing an inbox or repeating themselves, is a minute where their trust is slipping away. Slow service communicates disorganisation and a lack of respect for the customer’s time. In a world where speed equals service, delay is a deal-breaker.
The cost of disrespect
Rudeness in customer service, whether through tone, language or attitude, has an immediate and lasting impact. It tells the customer they’re not valued and it reflects poorly on the entire brand. Even one disrespectful exchange can undo years of loyalty.
Not understanding the problem
When support agents don’t understand the customer’s issue, or the product or service itself, the experience becomes frustrating and circular. Customers shouldn’t have to explain themselves multiple times or feel like they’re solving the issue alone. A lack of clarity from the business side leads to a lack of confidence from the customer.
No time to listen
Customers can tell when they’re being rushed, and when interactions feel hurried or transactional, people walk away feeling unimportant. Taking a few extra moments to fully understand and respond can make all the difference between a one-time user and a loyal advocate.
The hidden costs of poor CX
Poor customer service doesn’t always look like angry customers shouting at call centre agents. Sometimes, the damage is subtle and long-term:
Churn: Customers rarely explain why they leave – they just quietly take their business elsewhere.
Reputation: Negative reviews and social media callouts can dent your brand, even if they’re based on a single bad interaction.
Team morale: Frontline agents who are undertrained or under-supported often face the brunt of customer frustration, leading to burnout and high attrition.
Lost opportunities: Upselling and loyalty-building only happen when customers feel heard, helped and valued. Poor CX kills that pipeline.
Mitchell notes, “It’s easy to track call volumes or handle times. It’s harder to measure the trust you’ve lost by failing to resolve an issue. But that’s where the real cost lies.”
Avoiding the pitfalls: what great CX looks like
So how do you avoid these common traps? It starts with mindset and extends through strategy, culture and technology.
1. Make CX a leadership priority
Customer service shouldn’t be an afterthought. Companies that lead in CX invest in it from the top down, ensuring the function has a seat at the strategic table.
2. Invest in people, not just platforms
Technology is a powerful enabler and AI has revolutionised aspects of the contact centre, from smarter routing to real-time sentiment analysis. But Mitchell warns against over-relying on automation, “AI can enhance speed and scalability, but it can’t replace the emotional intelligence that customers expect, especially when they’re frustrated or vulnerable.”
3. Empower your frontline
Your customer service team isn’t just executing processes; they’re managing emotions, defusing tension and building loyalty in real time. Give them the training, autonomy and support to do it well.
4. Close the feedback loop
Don’t just collect feedback, act on it. Use customer insights to improve your products, processes and service culture. Customers notice when they’re heard.
5. Be consistent across channels
Whether it’s via chat, phone, email or social media, the tone, speed and quality of your service should remain consistent. Fragmented experiences lead to frustration.
What good customer service does
Customer retention: Good customer service keeps people coming back. When customers feel heard and valued, they’re far more likely to stick around. Retaining existing customers is also more cost-effective than constantly chasing new ones, which makes great service a smart long-term strategy.
Positive ROI: Investing in customer service delivers measurable returns. Satisfied customers spend more over time and are more likely to recommend your business to others. From increased revenue to reduced churn, strong service pays for itself many times over.
Competitive advantage: In markets where products and pricing are similar, service is what sets a business apart. A helpful, human experience creates a powerful differentiator, especially when competitors fall short. Good service becomes your brand’s secret weapon.
Customer loyalty: Exceptional service builds emotional connections. When customers feel genuinely cared for, they become more than repeat buyers – they become brand advocates. Loyalty built on trust and positive experience is far more resilient than loyalty built on price.
The future of CX is human-centric but tech-enabled
At Ignition CX, the belief is clear: while AI and automation can improve efficiency, the real differentiator in customer experience is still the human touch. Technology should support, not replace, the ability to connect, empathise and resolve.
Mitchell puts it this way, “The best customer experiences happen when people feel seen and supported. That doesn’t change just because technology evolves. If anything, it makes the human side even more valuable.”
In the race to digitise and scale, many brands lose sight of the one thing that truly matters: how customers feel after an interaction. Poor customer service may seem like a small crack in your operation, but left unchecked it can fracture trust, loyalty and growth.
Don’t let that happen, partner with a customer experience management (CXM) specialist who can make sure you’re one of those brands people speak about for the right reasons. When you outsource to the right experts, great CX becomes a growth engine, not just a support function.