The new year is a good time for all businesses to reflect on ways to keep those existing customers. It costs five times as much to acquire new customers as it does to keep those you already have.
Consider what happens when businesses stop focusing solely on acquiring new business, and start paying attention to customer retention. Reality check: 80% of businesses believe they deliver superior customer service, while only 8% of customers believe they have experienced superior service from those same businesses. Customer Abandonment: 20% of customers left a regular service provider due to poor customer service in 2012.
Current customer research also show 55% backed out of a transaction or purchase based on a poor service experience; 35% customers said they lost their temper with a customer service rep in the past year; and 24% of those who lost their tempers used social media to talk about their experiences with that company.
Otherproof “A Customer Saved is a Penny Earned” includes:
• On average, consumers tell 15 people about good experiences, but they tell 24 about their bad experiences
• $83 billion is the estimated annual loss to U.S. businesses due to poor customer service
• $289 is the average amount a customer would have spent with a business if only they hadn’t left due to poor service.
• 66% of consumers are willing to spend more with a company they believe provides excellent customer service. Of these, 41% stated they are more willing to spend additional dollars with smaller companies.
So, here’s a simple reminder for 2014.
Be nice to the customers you have - you’ll win the customers you want!