Globally, a staggering $3.7 trillion in consumer spending is at risk due to bad customer experiences, according to a Qualtrics XM Institute study. Having worked with numerous brands, we can tell you that this significant risk often begins with small, preventable mistakes.
That’s why we’ve created this guide. We’ll walk through clear examples of poor customer service and provide a practical roadmap to help you build an experience that not only prevents customer churn but also fosters deep, lasting loyalty. Let’s start now!
Why poor customer service is a silent brand killer
Poor customer service is a silent brand killer because its damage isn’t loud or sudden; it’s a slow leak that quietly drains your business’s foundation. It erodes your brand from three interconnected angles: revenue, reputation, and loyalty.
When customers feel unheard, they don’t just complain; they also tend to disengage. They leave, taking their money with them and damaging your revenue stream. Many will then share their negative experiences online, tarnishing a reputation that took years to build and scaring away potential new customers.
This threat is more powerful today because customer expectations are higher than ever. In the modern digital era, people expect:
- Speed: Quick and effective solutions without long waits.
- Empathy: To be treated with understanding and respect.
- Multi-channel support: A smooth experience whether they reach out via chat, email, or phone.
Failing to meet these basic standards has immediate consequences. A report from PwC found that 32% of all customers would stop doing business with a brand they loved after just one bad experience. This proves how unforgiving the landscape is; one slip-up can silently sever a relationship for good.
15 Common poor customer service examples
We all know how it feels when a company lets you down. Sometimes it’s just annoying, but other times, poor customer service makes you want to never deal with that brand again. Across every industry, even giant companies have slipped up in ways that hurt their reputation and bottom line. Let’s walk through the most common poor service mistakes out there, with real stories that show just how costly these blunders can be.
Long wait times and slow responses
Nothing tests a customer’s patience like being stuck on hold, endlessly refreshing a chat window, or waiting days for a reply that never comes. Delta Airlines made headlines when elite frequent flyers had to wait up to 41 hours to speak with an agent during a service crisis. Even callback options didn’t resolve the pain, and the brand’s reputation suffered widely after the story broke.
Comcast is often cited for infamously long waits and unresolved support tickets. This not only frustrates customers but also lowers their satisfaction score across the telecom industry.
Takeaway: Slow responses scream “we don’t value your time,” and they cost real money as frustrated customers leave or vent online.
Rude, unprofessional, or untrained staff
Courteous, knowledgeable staff are the heart of good service. However, when team members act dismissively or are unfamiliar with their own products, it’s a disaster. A real example: a major retailer (as shared in Zendesk’s Brand Loyalty Survey) ignored shoppers wanting to make a big purchase, leading them to exit empty-handed and swear never to return. According to Zendesk, 72% of customers say great service matters more than price.
Even renowned brands slip up, whether it’s a rude sales associate, a team member with poor product knowledge, or a manager unwilling to help, word spreads quickly and loyalty erodes.
Takeaway: A single rude encounter can lose lifelong customers.
Giving wrong, misleading, or inconsistent information
Conflicting or misleading info is a quick trust-breaker, and false advertising makes it worse. Brands often pay a steep price for deceptive claims. For instance, Volkswagen’s “Dieselgate” scandal cost it tens of billions. The company marketed “clean diesel” cars that secretly used “defeat devices” to cheat on emissions tests, polluting up to 40 times the legal limit. This deception across 11 million vehicles shattered customer trust worldwide.
On a different scale, Red Bull’s “gives you wings” slogan resulted in a $13 million settlement. A lawsuit claimed it was misleading advertising because the drink didn’t provide superior energy benefits compared to coffee. Although Red Bull admitted no wrongdoing, the case showed even playful marketing can have costly consequences.Takeaway: When information is wrong or deceptive, customers feel betrayed. The consequences range from public embarrassment to staggering financial penalties and a permanent loss of brand trust.
Ignoring customer feedback and complaints
Ignoring customer feedback makes people feel invisible and is a fast way to lose their business. When companies dismiss complaints, they’re actively damaging their reputation.
A stark example comes from Amazon. A woman in Georgia was mistakenly charged $7,455 for shipping three cartons of toilet paper. For two months, she pleaded with the company, but they refused to help, blaming a third-party seller for the error. It was only after she shared her story with the media, causing public outrage, that Amazon finally relented and refunded the money.
Takeaway: Listening and taking immediate ownership would have prevented the negative headlines and reinforced customer trust, rather than shattering it.
Over-promising and under-delivering
Failing to deliver on promises is a fast way to destroy customer trust. A textbook case is the launch of the video game Cyberpunk 2077. For years, developer CD Projekt Red marketed the game as a revolutionary, seamless masterpiece. However, upon release, it was plagued by bugs and performance issues, rendering it nearly unplayable on older consoles.
The backlash was immediate and severe. Sony removed the game from its digital PlayStation Store, and the company was forced to offer widespread refunds, wiping out years of customer goodwill. The launch caused significant financial and reputational damage.
Takeaway: Broken promises can erode years of brand loyalty overnight, resulting in severe financial consequences.
Hiding behind rigid or unfair policies
Hiding behind rigid or unfair policies can quickly alienate customers. A clear example is AT&T’s long-standing reputation for inflexible service rules. One case involved customers discovering unauthorized charges on their bills. Even when complaints were valid, AT&T limited refunds to just two billing cycles. This meant many overcharged customers were denied fair compensation simply because they noticed the issue too late.
The backlash was strong. The FTC fined AT&T $105 million, and the story spread widely, reinforcing its image as a company that values policies over people. Customers saw the rigid rules as proof that their concerns didn’t matter.
Takeaway: When companies refuse to bend unfair policies, they not only incur financial losses from fines but also risk losing customer loyalty that may never return.
Failure to resolve issues effectively (no ownership)
Failure to resolve issues effectively (no ownership) quickly breeds frustration. A clear case is United Airlines: musician Dave Carroll’s $3,500 Taylor guitar was broken in transit, and after 9 months of going in circles, the airline still wouldn’t take responsibility.
The backlash was swift. Carroll’s “United Breaks Guitars” video went viral, topping 9 million views early on, and it was widely reported that United’s stock fell about 10% (≈ $180 million) within four weeks of the video’s release, fueling a storm of negative headlines.
Takeaway: Own the problem and fix it quickly. Accountability can turn a bad moment into an opportunity for advocacy; deflection turns it into a PR and financial hit.
Poor product or service knowledge from staff
Employees lacking product knowledge frustrate customers and hurt sales. At IKEA, recent restructuring led to chronic understaffing and undertrained workers in U.S. stores. Customers complained about not being able to find staff who could answer questions or help with products. One survey revealed that 83% of shoppers felt they knew more than the retail workforce, highlighting a significant perception gap.
Low morale and poor training meant staff couldn’t effectively assist customers, resulting in frequent missed sales and falling satisfaction. Instead of boosting service, the new policy increased complaints and staff turnover, ultimately damaging IKEA’s once-stellar reputation in the process.
Takeaway: Uninformed staff don’t just let customers down. They send them straight to competitors, shrinking loyalty and revenue.
Lack of empathy or human touch
Robotic replies and indifference destroy customer trust. In a notable case, Verizon repeatedly billed a woman for her deceased father’s account, refusing to cancel it without a PIN even after she provided a death certificate. The company only relented after the story went public, creating a PR disaster.
Takeaway: Empathy isn’t a soft skill; it’s a business necessity that prevents customer churn.
Limited or inaccessible customer support channels
Customers expect help to be available when and where they need it, but some companies intentionally make it difficult. A notable example is Meta (Facebook), which has faced widespread criticism for its lack of accessible, live human support for its billions of users.
When users get locked out of their accounts, have their pages hacked, or face harassment, there is no direct phone number or live chat option available to the general public. Instead, they are directed to a maze of automated help center articles and community forums, which often fail to resolve urgent or complex issues.
This creates a sense of powerlessness, leaving users with no clear path to get help. The problem has become so severe that people have resorted to paying for Meta’s premium verification service just to get access to a real person for support.
Takeaway: Making support channels hard to find or use doesn’t reduce problems. It just amplifies customer frustration and shows a disregard for their safety and security.
Passing customers around without solving the problem
Being bounced from agent to agent is a classic source of irritation. Big banks like Wells Fargo has been called out for repeatedly transferring customers between departments, often with no resolution.
Takeaway: Empower frontline staff to own problems and solve them the first time.
Not respecting customer privacy or mishandling data
Data breaches or careless handling of personal information shatter trust. In 2018, Facebook’s mishandling of user data in the Cambridge Analytica scandal led to a $5B fine and millions of lost users. More recently, Marriott faced legal trouble for exposing the records of over 300 million guests through poor security practices.
Takeaway: Protect privacy at all costs; a single breach can cause mass exits and long-term damage.
Unexpected fees, hidden charges, or deceptive pricing
Nobody likes surprises that drain their wallet. Wells Fargo has been fined multiple times for charging customers unauthorized fees, including a $3 billion settlement in 2020 over its fake accounts scandal and a $3.7 billion penalty in 2022 for illegal fees tied to auto loans and mortgages. The backlash damaged both its finances and reputation.
In air travel, Spirit Airlines has become a poster child for hidden costs, adding charges for baggage, seat selection, and even Wi-Fi. The airline also agreed to an $8.25 million settlement after being sued for failing to disclose bag fees upfront, leaving travelers frustrated and distrustful.
Takeaway: Be upfront about costs. Surprise fees may boost short-term revenue, but they ultimately erode customer trust and loyalty.
Failure to personalize the customer experience
Modern buyers want brands to know their history and preferences. Netflix sets a high bar here: its recommendation engine is loved for personalizing experiences.
On the flip side, many banks and insurers still treat everyone the same, leading to generic offers and missed opportunities. According to a HubSpot survey, 80% of customers are more likely to buy from brands that offer personalized experiences.
Takeaway: Personal touches retain customers and boost satisfaction.
Not keeping customers informed during service disruptions
Silence during a breakdown is worse than the disruption itself. In October 2021, a misconfiguration caused Facebook, Instagram, and WhatsApp to go offline for nearly 6–7 hours, leaving billions of users and businesses stranded. With no immediate updates, frustration spread quickly as people turned to rival platforms just to learn what was happening.
A year later, during the December 2022 holiday season, Southwest Airlines canceled almost 17,000 flights, stranding over 2 million travelers. The U.S. Department of Transportation found the airline failed to provide timely notifications, and Southwest was later fined a record $140 million for mishandling the crisis.
Takeaway: Customers are far more forgiving when brands keep them in the loop. A timely update, even if it’s just “we’re working on it”, can prevent confusion from spiraling into anger.
How to turn poor service into opportunities?
The first step is always to recover with care. This involves a simple, three-part process:
- Apologize sincerely: Acknowledge the mistake and the customer’s frustration without making excuses.
- Offer a solution: Empower your team to solve the problem quickly. This could be a refund, a replacement, or another form of compensation that makes things right.
- Follow up: Check in afterward to ensure the customer is happy and feels valued.
Beyond fixing one-off issues, the real growth comes from creating customer feedback loops. This means actively collecting, analyzing, and acting on customer complaints and suggestions to prevent future problems.
Brands like Slack and Starbucks have built their success on this principle. Starbucks, for example, launched My Starbucks Idea, which collected about 150,000–190,000 suggestions over its run. From those, roughly 277 became real changes, like Cake Pops, Hazelnut Macchiato, free in-store Wi-Fi, and mobile ordering, making customers feel like true partners in the brand’s growth.
When you publicly showcase how you’ve used feedback to improve, whether by fixing a faulty product or streamlining a frustrating process, you build powerful authority and trustworthiness. It tells all your customers, “We listen, we care, and we’re committed to getting better.” This turns a past failure into a public promise of future excellence.
Best practices to avoid poor customer service
The best way to handle poor customer service is to prevent it from happening in the first place. This means building a proactive live chat system with the right tools and training. Here are some of the most practical ways to ensure your team delivers a great experience, every time.
1. Leverage technology to be faster and smarter
Modern tools can automate repetitive tasks, allowing your team to focus on handling complex issues. A powerful AI assistant and CRM can provide instant, accurate answers 24/7.
For example, a platform like Chatty centralizes all your customer conversations from email, live chat, Facebook Messenger, and WhatsApp into a single inbox. Its AI assistant, powered by ChatGPT-4, learns your entire product catalog, policies, and FAQs to instantly answer customer questions.
This means customers can receive product recommendations, check their order status, or find compatibility information at any time, without waiting for a human agent.
2. Train your team in empathy and problem-solving
Technology is a tool, but your people provide the human touch that builds loyalty. To empower your team to handle any situation with confidence and care, invest in regular soft skills training.
Actionable training tips include:
- Teach agents to listen and repeat back the customer’s issue.
- Use role-play to practice dealing with upset customers.
- Let staff offer fixes (like a refund or discount) without waiting on a manager.
- Keep a set of ready-made replies for common questions to save time.
3. Provide smooth multi-channel support
Customers expect to contact you on their preferred channel and receive a consistent experience. A disjointed process where they have to repeat themselves is a major source of frustration.
To build a smooth multi-channel experience:
- Be available on the channels customers prefer (chat, email, social).
- Use one helpdesk that keeps all conversations linked.
- Maintain a friendly and consistent tone throughout.
- Let customers switch easily from a bot to a live agent.
4. Set realistic expectations
Trust is built on promises kept. Most service failures happen when a brand over-promises and under-delivers. Prevent disappointment by being honest and transparent from the start.
Here’s where to set clear expectations:
- Shipping: Show delivery dates on product and checkout pages. If delayed, let customers know quickly.
- Product: Be honest about what it can and can’t do. Skip the hype.
- Support: Inform customers about the expected response time for chat or email replies (e.g., within 24 hours).
5. Monitor and respond to reviews quickly
Online reviews are your public report card. Actively managing them shows both current and potential customers that you are listening and committed to their satisfaction.
A simple process for managing reviews:
- Set up alerts: Use tools like Google Alerts to know when people mention your brand.
- Reply to all reviews: Thank people for good ones. For bad ones, answer within 24 hours, say sorry, and offer to fix it offline.
- Look for patterns: Reviews show free insights. If many people complain about the same thing, that’s where you can make improvements.
FAQ
Can poor customer service go viral?
Yes. In the age of social media, a single negative experience can spread to millions in hours. Studies reveal that 95% of customers talk about a poor experience, and around 13% go as far as telling 15 or more people.
What’s the difference between bad service and a one-time mistake?
A one-time mistake is an isolated slip, like a wrong coffee order that’s quickly corrected. Bad service is a repeated pattern caused by poor systems, training, or culture (long waits, rude staff, or no accountability). Customers usually forgive a single error if recovery is good, but they won’t stay with a brand that fails them consistently.
Is poor customer service worse than a bad product?
Yes. A strong product can’t make up for rude or unhelpful service, while good service can smooth over product flaws. Zendesk reports that about 50% of customers switch after one bad service experience, rising to 80% after the second.
How can customers deal with poor service?
- Be clear and calm: Explain the issue directly and state what you want as a resolution (e.g., a refund, a replacement, or an apology).
- Use multiple channels: If you get no response from one channel, try another. A public tweet or a formal complaint email can often get more attention than a phone call.
- Escalate if necessary: If a frontline agent can’t help, politely ask to speak with a manager or supervisor.
- File a formal complaint: For serious issues, you can file a complaint with organizations like the Better Business Bureau (BBB) or the Federal Trade Commission (FTC), which can mediate on your behalf.
Recap
The poor customer service examples we’ve walked through highlight the high cost of getting it wrong. Let’s move forward with these lessons in mind and build a customer-first culture that not only avoids these pitfalls but also creates lasting loyalty.