FACTS

Facts about customer experiences and referrals 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 Affairs Happy customers who get their issue resolved tell about 4-6 people about their experience - White House Office

of Consumer Affairs 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 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 94% of customers do not want to be transferred to another representative more than once - Mobius Poll 2002 80% of customers prefer to speak with a representative at the weekends - Mobius Poll 2002 84% of customers are frustrated when a representative does not have immediate access to account information -

Mobius Poll 2002 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 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

A 5% reduction in the customer defection rate can increase profits by 5 95% - Bain & Company A 50% reduction in customer base would occur if left alone over a 5 year period - Bain & Company It costs 6- 7 times more to acquire a new customer than retain an existing one - Bain & Company An average company loses between 10-30% of its customers annually - McKinsey 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 68% of customers leave because they were upset with the treatment they received whilst speaking to customer

services US Chamber of Commerce 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

For every customer complaint, there are 26 other unhappy customers who have remained silent - Lee Resource 96% of unhappy customers don¹t complain, however 91% of those will simply leave and never come back - 1st

Financial Training services 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 Customer profitability tends to increase over the life of a retained customer - Leading on the Edge of Chaos,

Emmet Murphy & Mark Murphy 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 centres A good customer service strategy should balance costs, quality and revenues. Companies that restructure call

centres 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

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

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

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

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

72% of all customers believe it takes too long to reach a live agent Harris 69% said they were on hold for too long - Harris 50% of the people survey said that agents failed to answer their questions - Harris 44% said the information they received was not accurate - Harris 92% of all interactions happen via the phone - Gartner 85% of consumers are dissatisfied with their phone experience - Gartner 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

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

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

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

Facts about customer strategy

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.

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

71% of business leaders believe that customer experience is the next corporate battleground – Shaw & Ivens eCommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers –

McKinsey Reducing time and money on explaining business procedures and costs with new customers will save overall –

Marketing Management; Spiro, Rich, Stanton 2008 73% of marketing managers of various large companies credit ‘Repeat purchase behaviour’ as integral to the

definition of successful customer engagement – Forbes Magazine 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

55% of current marketing spend is on new customer acquisition – McKinsey 33% of current marketing spend is on brand awareness – McKinsey Only 12% of current marketing spend is on customer retention – McKinsey