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

 

Sources:

Gordon Tan

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Gordon Tan is an entrepreneur based in Australia who has started and sold multiple technology companies with a combined value of $150m. This included a client satisfaction benchmarking platform which gave him first hand insight into the best practices of over 6,000 businesses. After retiring at 35 he is now a recognised thought leader on winning and retaining clients - His two passions: making clients the heartbeat of a business no matter what the product or service and this blog.

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