“Customer service is the new marketing”, that’s the buzz around town at the moment.
According to Bain and Co., a 5% increase in customer retention can increase a company’s profitability by 75%.
And if those numbers don’t impress you, Gartner Group statistics tell us that 80% of your company’s future revenue will come from just 20% of your existing customers.
Still not sold on customer service and retention? One final statistic provided by Lee Resource Inc. should give you plenty to think about: Attracting new customers will cost your company five times more than keeping an existing customer.
Keeping that in mind, here are ten reasons why customer service is the new marketing:
1. 86% of consumers quit doing business with a company because of a bad customer experience
2. 51% of customers said they would only try to reach support once before giving up on a purchase
3. 40% of customers say improved interaction with service employees is their key driver to spending more with a company
4. 73% of customers cited rude and incompetent staff as the primary reason why they give up on a brand
5. 80% of U.S. consumers say they would pay more to ensure a superior customer experience
6. 78% of online customers recommend a brand to friends and other contacts after a great customer experience
7. Loyal customers are worth up to 10 times as much as their first purchase
8. It is 5-7 times more expensive to acquire a new customer than to keep an old one
9. It costs a company $234 everytime they lose a customer
10. Customers spend on average 9.5 minutes trying to reach a human via automated phone systems
- 12 Customer Retention Mistakes that are hurting your business
- The Ultimate Guide to creating a Customer Feedback Questionnaire
- 18 Customer Loyalty Strategies that can help you improve customer service
Customer Service Infographic courtesy of HelpScout:
- Customer Experience Report: North America (RightNow)
- The Ideal Online Experience: What it Takes for Consumers to Click, Not Abandon
- Good Service is Good Business
- Research reveals UK customers don’t give feedback because they believe businesses don’t care
- 81% of Shoppers Willing to Pay More for Better Customer Experience, Oracle Research Shows
- ClickFox Consumer Surveys
- White House Office of Consumer Affairs by John A. Goodman