Editor’s note: Increasingly, marketing experts are emphasizing the value of paying attention to the complete customer experience, as opposed to a more narrow focus on lead generation and qualification. Colin Shaw is founder & CEO of Beyond Philosophy, one of the world’s first organizations devoted to customer experience. Colin recently commented on a blog post (“50 Facts About Customer Experience”) in Return on Behavior Magazine, and called out the 15 statistics he thought most important. We thought you’d be interested. Colin writes:
15 Statistics That Should Change The Business World – But Haven’t
It still surprises me, even in this day and age, how many people still need convincing that improving the Customer Experience will generate revenue and save costs. As I read “50 Facts About Customer Experience”, which highlights many stats from reputable sources clearly showing that improving your Customer Experience drives revenues and save costs, I wondered why people still question this.
Here are my top 15 favorite stats from this list:
1. Price is not the main reason for customer churn, it is actually due to the overall poor quality of customer service – Accenture global customer satisfaction report 2008.
2. A customer is four times more likely to defect to a competitor if the problem is service-related than price- or product-related – Bain & Company.
3. The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% – Marketing Metrics.
4. For every customer complaint there are 26 other unhappy customers who have remained silent –Lee Resource.
5. 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.
6. 96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back – 1Financial Training services.
7. 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.
8. Happy customers who get their issue resolved tell about 4-6 people about their experience. – White House Office of Consumer Affair.
9. 70% of buying experiences are based on how the customer feels they are being treated – McKinsey.
10. 55% of customers would pay extra to guarantee a better service – Defaqto research.
11. Customers who rate you 5 on a scale from 1 to 5 are six times more likely to buy from you again, compared to ‘only’ giving you a score of 4.8. – TeleFaction data research.
12. It takes 12 positive experiences to make up for one unresolved negative experience – “Understanding Customers” by Ruby Newell-Legner.
13. A 5% reduction in the customer defection rate can increase profits by 5 – 95% – Bain & Company.
14. It costs 6–7 times more to acquire a new customer than retain an existing one – Bain & Company.
15. eCommerce spending by new customers is on average $24.50, compared to $52.50 for repeat customers – McKinsey.
So my question to you is this: with this weight of evidence, why do organizations still not truly focus on improving the Customer Experience?
Colin Shaw, CEO of Beyond Philosophy, is an international author of four best-selling books and recognized as a Business Influencer by LinkedIn. Beyond Philosophy provide consulting, specialized research & training from offices in Atlanta, Georgia and London, England. Follow Colin Shaw on Twitter: @ColinShaw
“Bad phone call?” image by Marc Davis, used under a Creative Commons 2.0 license.