10 Mind-blowing reasons why Customer Service is the New Marketing

customer service is marketing

“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

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2.   51% of customers said they would only try to reach support once before giving up on a purchase

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3.   40% of customers say improved interaction with service employees is their key driver to spending more with a company

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4.   73% of customers cited rude and incompetent staff as the primary reason why they give up on a brand

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5.   80% of U.S. consumers say they would pay more to ensure a superior customer experience

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6.   78% of online customers recommend a brand to friends and other contacts after a great customer experience

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7.   Loyal customers are worth up to 10 times as much as their first purchase

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8.   It is 5-7 times more expensive to acquire a new customer than to keep an old one

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9.   It costs a company $234 everytime they lose a customer

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10.   Customers spend on average 9.5 minutes trying to reach a  human via automated phone systems

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Related:

Customer Service Infographic courtesy of HelpScout:

bad-customer-service

Sources:

Tagged: Customer Satisfaction

About Ross Beard

Ross Beard was on the marketing team at Client Heartbeat, the simple customer feedback tool. Learn how Client Heartbeat makes improving customer satisfaction easy.



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