It makes sense to invest in improving service for your existing customers

This infographic on customer experience by the marketing firm Shankman Honig features some eye-opening statistics. For instance:

  • In 2012, 20% of customers left a regular service provider due to poor service
  • 55% of consumers backed out of an intended purchase because of poor service
  • 35% of consumers have lost their temper with a customer service representative in the past year
  • 24% of consumers who lost their temper used their social network channels to tell friends about their poor service experience

We all know that bad news is easier to talk about than good news. When was the last time you tuned into the evening news and found a story about something nice? It’s the same personally – people usually find it easier to complain than to compliment and the statistics also bear this out.

On average people with a good customer experience share that experience with 15 people, but someone with a negative experience will share it with 24 others.

What these numbers boil down to is the old business school maxim that it is far harder to find new customers than to keep the ones you already have. In fact, academics estimate that it costs five times as much to win new customers as it does to just keep your existing customers happy – so why not consider investing a little more in making the customer experience better? It’s a sound investment according to these figures.

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Photo by Meena Kadri licensed under Creative Commons

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This entry was posted in Current Affairs, Customer Service, Innovation and tagged , , , , , , . Bookmark the permalink.

One Response to It makes sense to invest in improving service for your existing customers

  1. Alistair- great to see you last week. Completely agree with your blog above re: give a good experience (it doesn’t have to delight) and your customers will keep coming back, as we are all too busy to keep finding new things.

    So why do so many businesses keep failing at the ‘Basics’. I have had two dreadful service experiences this week with big blue chip brands, both of which only had a contact centre that you could call between 8am and 8pm (like most senior people I am rarely not working during these hours) and when I asked one company (a Telco) for which I actually got up on Saturday morning to be at their store at 8am, was told by the store manager that he/they couldn’t deal with a service issue they just sold products and that I had to call the contact centre. I reminded him that it was their service (which I had contacted 3 times and queued for over 20 minutes each time) I was complaining about, as well as my wifi dongle not working – so could I have an email address to complain to. The response was that they knew their service wasn’t great, they only had a call channel and that ‘they were working’ on this. So I am now about to resort to social channels to see if that will do any good……… Brilliant Basics before OMNI channel would be a good start for most businesses.

    Good news though, I had a great experience on Virgin trains back from Edinburgh last week the service manager was amazing, so I tweeted about that at the time and also personally thanked him. Perhaps he could go and work at the Telco – who I won’t name and shame here.

    Read my last article that I posted which talks about the role that CE can play in transformation
    http://blog.custerian.com/2013/11/07/what-role-in-transformation-can-customer-experience-play/

    best regards
    Nicola

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