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 this great blog the other day, which highlights many stats from reputable sources clearly showing that improving your Customer Experience drives revenues and save costs, it made me wonder why people still question this.
Here are my top 15 favourite stats from this list:
- 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.
- 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.
- The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% – Marketing Metrics.
- For every customer complaint there are 26 other unhappy customers who have remained silent –Lee Resource.
- 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.
- 96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back – 1st Financial Training services.
- 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.
- Happy customers who get their issue resolved tell about 4-6 people about their experience. – White House Office of Consumer Affair.
- 70% of buying experiences are based on how the customer feels they are being treated – McKinsey.
- 55% of customers would pay extra to guarantee a better service – Defaqto research.
- 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.
- It takes 12 positive experiences to make up for one unresolved negative experience – “Understanding Customers” by Ruby Newell-Legner.
- A 5% reduction in the customer defection rate can increase profits by 5 – 95% – Bain & Company.
- It costs 6 – 7 times more to acquire a new customer than retain an existing one – Bain & Company.
- eCommerce spending for 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 is Founder & CEO of Beyond Philosophy LLC who help organizations grow by improving their Customer Experience and identifying hidden unmet needs. As a result, the Financial Times selected Beyond Philosophy LLC, as one of the best management consultancies for the last two years.
- Colin is recognized by LinkedIn as one of the ‘ ...