Customer experience and customer centricity are hot topics right now. Most of the talk is about why and how you should embrace CX. But would you like to know what the quantified business benefits are ? Then this article is for you.
It is a selection of customer experience statistics and their sources from around the world for you to answer that question authoritatively.
Just imagine: What could they mean for your business:
1. “Increasing customer retention rates by 5 percent could increase profits from 25 percent to 95 percent.” – Harvard Business Review
Question to You: Would could you do with that extra profit ?
2. “It is 6-7 times more costly to attract a new customer than it is to retain an existing customer. – White House Office of Consumer Affairs
Question to You: How is your customer loyalty program doing ?
3. “A customer is four times more likely to buy from a competitor if the problem is service-related, versus price or product-related.” – Bain & Co.
Question to You: How can you improve your customer services, pre-sale and post-sale ?
4. “Consumers are 2-times more likely to share their bad customer service experiences than they are to talk about positive experiences.” – American Express 2012 Global Customer Service Barometer
Question to You: Are you monitoring your social media and online reputation ?
5. “A 10 percent increase in customer retention levels result in a 30 percent increase in the value of the company.” – Bain & Co.
Question to You: How much more could your business be worth ?
6. “89 percent of consumers have stopped doing business with a company after experiencing poor customer service.” – RightNow Customer Experience Impact Report
Question to You: How many customers have not come back to buy from your business ?
7. “It takes 12 positive customer experiences to make up for one negative experience.” – Parature
Question to You: Can you see why it is cheaper to prevent a bad customer experience ?
8. “45 percent of companies offering web or mobile self-service reported an increase in site traffic and reduced phone inquiries.” – CRM Magazine
Question to You: How is your online strategy doing ?
9. “70 percent of buying experiences are based on how the customer feels they are being treated.” – McKinsey
Question to You: How are your customers feeling right now ?
10. “55 percent of consumers would pay more for a better customer experience.” – Defaqto Research
Question to You: How does that impact your pricing strategy ?
11. “Customer churn is attributed to the poor quality of customer service. – Accenture Maximizing Customer Retention Report
Question to You: How can you ensure a consistently positive customer experience in your business ?
12. “45 percent of US consumers will abandon an online transaction if their questions or concerns are not addressed quickly.” – Forrester
Question to You: How long does your business take to respond ?
13. “42 percent of service agents are unable to efficiently resolve customer issues due to disconnected systems, archaic user interfaces, and multiple applications.” – Forrester
Question to You: What shape are your back-end IT systems in ?
14. “Customers who engage with companies on social media are more loyal and they spend up to 40 percent more with those customers than other customers.” – Bain and Co.
Question to You: Is your social media strategy up to date ?
15. “Australian businesses lose $720 per bad customer experience.” – Ernst and Young
Question to You: How much is your business losing ?
16 “Only 31 percent of organizations recognize and reward employees across the company for improving the customer experience.” – Forrester Research.
Question to You: Are you rewarding the right people in your business ?