CUSTOMER EXPERIENCE & SERVICE FACTS
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For every customer complaint, there are 26 other unhappy customers who have remained silent – Lee Resource
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96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back – 1st Financial Training services
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A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people. – White House Office of Consumer Affairs
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Happy customers who get their issue resolved tell about 4-6 people about their experience. – White House Office of Consumer Affairs
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An unhappy customer will become a loyal consumer if you fix his complaint and do it quickly. Eighty percent (80%) of these folks will come back to you if you've treated them fairly. That percentage rises to the upper 90s if you respond immediately
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A customer is 4 times more likely to defect to a competitor if the problem is service related than price or product related – Bain & Company
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70% of buying experiences are based on how the customer feels they are being treated – McKinsey
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55% of customers would pay extra to guarantee a better service – Defaqto research
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Price is not the main reason for customer complaints, it is actually due to the overall poor quality of customer service – Accenture global customer satisfaction report 2008
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Customer who rate you 5 on a scale from 1 to 5 are six times more likely to buy from you again, as to if they ‘only’ gave you a score of 4.8. – TeleFaction data research
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It takes 12 positive experiences to make up for one unresolved negative experience – “Understanding Customers” by Ruby Newell-Legner
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It costs 6 – 7 times more to acquire a new customer than retain an existing one – Bain & Company
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An average company loses between 10 – 30% of its customers annually – McKinsey
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Dissatisfied customers whose complaints are taken care of are more likely to remain loyal, and even become advocates, as those that are ‘just’ customers – Strauss & Seidel
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The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% – Marketing Metrics
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A 2% increase in customer retention has the same effect as decreasing costs by 10% – Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy
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Customer profitability tends to increase over the life of a retained customer – Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy
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Research shows that a 10% increase in customer retention levels result in a 30% increase in the value of the company – Bain & Co.
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76% of companies motivate employees to treat customers fairly, and 62% provide effective tools and training to gain trust with their customers – Peppers and Rogers Group, 2009 Customer Experience Maturity Monitor
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81% of companies with strong capabilities and competencies for delivering customer experience excellence are outperforming their competitors – Peppers and Rogers, 2009 Customer Experience Maturity Monitor
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Even in a negative economy, customer experience is a high priority for consumers, with 60% often or always paying more for a better experience. – Harris Interactive, Customer Experience Impact Report
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85% of business leaders agree that traditional differentiators alone are no longer a sustainable business strategy – Shaw & Ivens
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71% of business leaders believe that customer experience is the next corporate battleground – Shaw & Ivens
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55% of current marketing spend is on new customer acquisition – McKinsey
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33% of current marketing spend is on brand awareness – McKinsey
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Only 12% of current marketing spend is on customer retention – McKinsey
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The top three drivers for investing in customer experience management are:
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1. Improve customer retention – (42 %)
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2. Improve customer satisfaction – (33 %)
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3. Increase cross-selling and up-selling (32 %)
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Source: Aberdeen report – Customer Experience Management: Engaging Loyal Customers to Evangelize Your Brand
