Based on research, what percentage of customers who experience poor service will NOT complain but will stop buying from the firm again?

Enhance your preparation for the CII Certificate in Insurance - Customer Service in Insurance (IF9) Test. Explore flashcards, multiple-choice questions, and detailed explanations to ace your exam!

Research indicates that a significant majority of customers who encounter poor service do not take the step of formally complaining. Instead, they choose to stop doing business with the company entirely. The statistic that around 96% of customers who experience dissatisfaction will not voice their complaints but will instead decide to switch to a different provider underscores the crucial importance of customer service in retaining clients.

This phenomenon can be attributed to a couple of behavioral patterns in consumers: many individuals prefer to avoid confrontation or feel that their complaints will not lead to any improvements. Consequently, they may choose to simply take their business elsewhere without communicating their grievances. Understanding this statistic highlights the need for businesses to prioritize exceptional customer service proactively, as fostering loyalty and addressing issues preemptively can lead to improved customer retention and satisfaction.

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