BREAKING NEWS

Facts about customer experiences and referrals

1.     96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back – 1^st Financial Training services

2.     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

3.     Happy customers who get their issue resolved tell about 4-6 people about their experience. – White House Office of Consumer Affairs

4.     Happy customers who get their issue resolved tell about 4-6 people about their experience. – White House Office of Consumer Affairs

5.     70% of buying experiences are based on how the customer feels they are being treated – McKinsey

6.     55% of customers would pay extra to guarantee a better service – Defaqto research

7.     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

8.     94% of customers do not want to be transferred to another representative more than once – Mobius Poll 2002

9.     80% of customers prefer to speak with a representative at the weekends – Mobius Poll 2002

10.  84% of customers are frustrated when a representative does not have immediate access to account information – Mobius Poll 2002

11.  Customer who rate you 5 on a scale from 1 to 5 are six times more likely to buy from you again, as to if they ‘only’ gave 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

Facts about customer retention and churn facts

1.     A 5% reduction in the customer defection rate can increase profits by 5 – 95% – Bain & Company

2.     A 50% reduction in customer base would occur if left alone over a 5 year period – Bain & Company

3.     It costs 6 – 7 times more to acquire a new customer than retain an existing one – Bain & Company

4.     An average company loses between 10 – 30% of its customers annually – McKinsey

5.     A customer is 4 times more likely to defect to a competitor if the problem is service related than price or product related – Bain & Company

6.     68% of customers leave because they were upset with the treatment they received whilst speaking to customer services – US Chamber of Commerce

7.     Dissatisfied customers whose complaints are taken care of are more likely to remain loyal, and even become advocates, as those that are ‘just’ customers – Strauss & Seidel

8.     The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% – Marketing Metrics

9.     For every customer complaint, there are 26 other unhappy customers who have remained silent –Lee Resource

10.  96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back – 1^st Financial Training services

11.  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

12.  Customer profitability tends to increase over the life of a retained customer – Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy

13.  In the US alone, people that switch from insurance providers represent a $7.6 billion market in annual premiums – JD Power & Associates

Facts about customer service and contact / call centers

1.     A good customer service strategy should balance costs, quality and revenues. Companies that restructure call centers in this way can often cut their costs by up to 35% and boost the revenue they generate by as much as 35%, thereby transforming them into strategic assets providing a competitive advantage – McKinsey

2.     Research shows that a 10% increase in customer retention levels result in a 30% increase in the value of the company – Bain & Co.

3.     76% of companies motivate employees to treat customers fairly, and 62% provide effective tools and training to gain trust with their customers – Peppers and Rogers Group, 2009 Customer Experience Maturity Monitor

4.     70% of customer experience management best in class adopters use customer feedback to make strategic decision. 50% of industry-average organizations and 29% of laggards do. – Aberdeen Group

5.     81% of companies with strong capabilities and competencies for delivering customer experience excellence are outperforming their competitors – Peppers and Rogers, 2009 Customer Experience Maturity Monitor

6.     72% of all customers believe it takes too long to reach a live agent – Harris

7.     69% said they were on hold for too long – Harris

8.     50% of the people survey said that agents failed to answer their questions – Harris

9.     44% said the information they received was not accurate- Harris

10.  92% of all interactions happen via the phone – Gartner

11.  85% of consumers are dissatisfied with their phone experience – Gartner

12.  Even in a negative economy, customer experience is a high priority for consumers, with 60% often or always paying more for a better experience. – Harris Interactive, Customer Experience Impact Report

Employee facts

1.     The average recruitment cost of filling a vacancy is £4333, increasing to £7750 when organizations are also calculating the associated labour turnover costs – The Chartered Institute of Personnel and Development Annual Survey

2.     Employee churn in the private sector is 22.6% – The Chartered Institute of Personnel and Development Annual Survey

3.     An average of £1202 is spent on employee training  – The Chartered Institute of Personnel and Development Annual Survey

Facts about customer strategy

1.     90% of North American firms view customer experience as important or critical to 2010 plans. 80% of firms would like to use customer experience as a form of differentiation. – Forrester’s: The State of Customer Experience 2010.

2.     85% of business leaders agree that traditional differentiators alone are no longer a sustainable business strategy – Shaw & Ivens

3.     71% of business leaders believe that customer experience is the next corporate battleground – Shaw & Ivens

4.     eCommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers – McKinsey

5.     Reducing time and money on explaining business procedures and costs with new customers will save overall – Marketing Management; Spiro, Rich, Stanton 2008

6.     73% of marketing managers of various large companies credit “Repeat purchase behavior” as integral to the definition of successful customer engagement –Forbes Magazine

7.     A survey asking which is the most important marketing objectives, shows that 29.9% think that it should be customer acquisition, and 26.6% think that it is customer retention. However 62.2% admit that they concentrate on customer acquisition, with only 20.6% focusing on customer acquisition. –Emarketer

8.     55% of current marketing spend is on new customer acquisition – McKinsey

9.     33% of current marketing spend is on brand awareness – McKinsey

10.  Only 12% of current marketing spend is on customer retention – McKinsey