Happy Halloween! Let’s celebrate Halloween customer experience style by taking a look at some scary reasons you need to be focusing on the employee experience and the customer experience. Why? Well…
The thing is, every brand has a lifespan – because every customer has an attention span.
-Mark Di Somma on Branding Strategy Insider
There are so many reasons to focus on a great customer experience, so if you need help sealing the deal with your executives, these stats ought to be helpful.
73% of people surveyed wouldn’t care if the brands they used disappeared from their lives.
Source: Co.Exist
Globally, more people trust regular employees to tell the truth than CEOs (50% vs. 43%).
Source: 2013 Edelman Trust Barometer
More than 70% of customers surveyed believe small businesses understand their customer better than large companies, know their business/product better than large companies, provide a more personal customer service experience than large companies, and are more concerned about my needs than larger companies.
Source: American Express Global Customer Service Barometer, 2012
It is 6 to 7 times more expensive to acquire new customers than it is to keep a current one.
Source: White House Office of Consumer Affairs
It takes 12 positive experiences to make up for one unresolved negative experience.
Source: HelpScout
Millennials believe that other consumers care more about their shopping experiences than companies do – that’s why they share their opinions online.
Source: OECD “Electronic and Mobile Commerce,” 2013
87% of global consumers believe business should place at least equal emphasis on social interests as business interests, and ‘purpose’ has increased as a purchase trigger by 26% since 2008.
Source: Edelman Trust Barometer, 2013
While 50% of Americans trust businesses to do what is right, only 15% trust business leaders to tell the truth.
Source: Edelman Trust Barometer, 2013
Only 34% of workers say, “Employees [in their company] have a high level of trust in management and the organization.
Source: Interaction Associates
70% of buying experiences are based on how the customer feels he or she is being treated.
Source: McKinsey
$83 billion is estimated to be lost by U.S. businesses every year due to poor customer service.
Source: Genesys
Businesses lose $289 each year for every customer who leaves due to poor service.
Source: Genesys
On average, loyal customers are worth up to 10 times as much as their first purchase.
Source: White House Office of Consumer Affairs
In 2012, only 37% of US companies earned a customer experience index rating of “excellent” or “good.”
Source: Forrester
80% of big companies described themselves as delivering “superior” service, but only 8% of customers say they’ve experienced “superior” service from these companies.
Source: The New Yorker
In the past year, two in five consumers or more in most markets indicate that they have not completed a transaction or made an intended purchase because of poor customer service.
Source: American Express Global Customer Service Barometer
Thanks to SAP for compiling 99 Facts on the Future of Business, where many of the above stats were found.
Accenture’s recent Global Consumer Pulse Research had some startling stats, as well, with the daunting statement: “The metrics aren’t moving.”
66% of consumers switched companies in at least one of ten industries due to poor service in the past year. 82% of consumers felt their service provider could have done something to prevent switching. 55% say they’d have stayed if the company had proactively contacted them, and 51% would have stayed had the company simply recognized them and rewarded them for their business.
Source: Accenture Global Consumer Pulse Research, 2013
What are some of those frustrating interactions for customers that can be fixed to prevent switching behavior?
- Contacting a company multiple times for the same reason (91%)
- Being put on hold for a long time (90%)
- Repeating your issue to several company reps (89%)
- Not being easy to do business with (85%)
- Not delivering on promises (84%)
- Inconsistencies in multichannel experiences (58%)
A few great stats from Kissmetrics (click link for sources):
Only 50% of consumers give a brand only 1 week to respond to a question before they stop doing business with them.
After poor customer service, 26% of consumers post a negative comment on social networking sites like Facebook or Twitter.
79% of those who complained about poor customer service had their complaints ignored.
57% of survey respondents said companies are clueless, it sometimes feels like the consumer knows more about the company than the customer service agent.
Some other facts…
For every customer who bothers to complain, 26 others remain silent.
Source: White House Office of Consumer Affairs
Consumers are two times more likely to share their bad customer service experiences than they are to talk about positive experiences.
Source: 2012 Global Customer Service Barometer
A customer is 4 times more likely to buy from a competitor if the problem is service related vs. price or product related.
Source: Bain & Co.
A 10% increase in customer retention levels result in a 30% increase in the value of the company. Source: Bain & Co
I think there’s a lot of compelling information here. If these stats don’t scare you into focusing on the customer experience, I’m not sure what will. What’s stopping you or your executives from focusing on the employee experience and the customer experience?
Although your customers won’t love you if you give bad service, your competitors will.
Kate Zabriskie
