Customer service delays in Singapore result in businesses losing S$1.24B in wages

SINGAPORE: There have been more customer service delays in Singapore, with recent figures revealing a staggering cost of S$1.24 billion in lost wages.

The average Singaporean finds themselves spending 16.1 hours waiting on hold to address service complaints, according to a study released by ServiceNow.

Singapore Business Review reported that last year, Singaporeans collectively endured over 30 million hours on hold, a concerning statistic that points towards businesses taking more time in resolving customer-related issues. This translates to approximately two full working days (16.1 hours) per individual, contributing to a substantial nationwide wage loss.

Findings also suggest a growing frustration among consumers. One in three Singaporeans reported spending more time on hold in 2023 compared to the previous year. Additionally, one in two respondents believe that the time taken to resolve issues has increased.

ServiceNow has issued a warning that sluggish service solutions could escalate business operating costs. On average, employees are dedicating 4.7 working days to resolve each customer issue, highlighting the need for more efficient customer service processes.

The reasons behind prolonged wait times are varied, with issues such as staff lacking decision-making authority (52%), lack of responsibility and ownership in between departments (48%), inefficient internal communication (48%), understaffed or overwhelmed customer service departments (47%), and a perceived lack of listening skills among customer service staff (40%).

The deteriorating quality of customer service is a growing concern among consumers, with seven in ten Singaporeans attributing it to companies cutting costs.

According to Mr Wee Luen Chia, managing director at ServiceNow Asia, “Businesses that empower their employees and teams to collaborate quickly and transparently to resolve issues will succeed in 2024.”

“Frustrating wait times, little resolution and abrupt service disruption are costing Singapore its patience along with National productivity, too,” he added.

According to the study, Singaporeans have clear expectations of what constitutes good customer service. These include expedient issue resolution (67%), prompt accessibility via phone, chat, or in-person (52%), empathy from customer service agents (47%), ability to monitor progress (46%), and comprehensive knowledge of service details by agents (42%). /TISG

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