Walt Disney: “Do what you do so well that they will want to see it again and bring their friends.”
Benefits of providing great customer service:
- A “totally satisfied customer” contributes six times as much revenue as a “somewhat satisfied customer” – InfoQuest.
- Almost 9 in 10 US consumers say they would pay more to ensure a superior customer experience – Customer Experience Impact Report by Harris Interactive / Right Now 2010.
- A 5% increase in customer retention increases profits up to 125% – Bain & Company.
- Customer profitability increases over the life of a retained customer – Leading on the Edge of Chaos, Emmet Murphy and Mark Murphy.
- Loyal customers do not waste time researching or listening to the offers from the competition.
The importance of providing great customer service:
- By 2020, customer experience will overtake price and product as the key brand differentiator – Customers 2020 report.
- “Customer service is the new marketing” – Derek Sivers, CD Baby.
How the customer feels:
- 53% of customers switch who they do business with because they feel unappreciated – NewVoice.
- “Customers remember the service a lot longer than they remember the price” – Lauren Freedman, President of the E-tailing Group.
- A TARP (Technical Assistance Research Programs) survey showed that as few as one in ten dissatisfied customers bothers to complain. The rest will silently leave and take their business elsewhere without anyone understanding why. They may also tell others about their negative experiences.
- Even when customers do complain, it is often directed at the frontline employees. Employees might be afraid to share complaints if they are worried they will get into trouble or if they feel that there is nothing they can do about it.
- 89% of consumers purchase from a competitor following a poor customer experience – Harris Interactive, 2011 Customer Experience Improvement study.
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