How Good Is YOUR Customer Service?

Posted: November 9, 2011 in News and Features

An extract from From Customer Service Magazine – The eMagazine for Customer Service Professionals

  • 68% of customer defection takes place because customers feel poorly treated. Source: TARP
  • It can cost five times more to buy new customers than retain existing ones. Source: TARP
  • 1% cut in customer service problems could generate an extra £16m in profits for a medium-sized company over 5 years.

Why customers quit: 

  • 1% die
  • 3% move away
  • 68% quit because of an attitude of indifference towards the customer by the staff.
  • 14 % are dissatisfied with the product.
  • 9% leave because of competitive reasons.

Source: How to win customers and keep them for life (2000) – Michael Leboeuf

  • – For every customer who bothers to complain, 26 other customers remain silent. 
  • – It takes 12 positive service incidents to make up for 1 negative incident. Source:
  • – The average “wronged customer” will tell 8-l6 people about it. Over 20% will tell more than 20.
  • – 91% of unhappy customers will not willingly do business with you again. Source:
  • – 70% of complaining customers will do business with you again if you resolve the complaint in their favour.
  • – 95% of complaining customers will do business with you again if you resolve the complaint instantly.
Source: Lee Resource Inc
  • Reducing customer defections can boost profits by 25-85%. In 73% of cases, the organization made no attempt to persuade dissatisfied customers to stay; even though 35% said that a simple apology would have prevented them from moving to the competition. 
Source: NOP
  • 80% of complaints received by an organisation are likely to have poor communication as their root cause, either with the customer or within the organisation itself. Source: Unknown
  • 56%-70% of the customers who complain to you will do business with you again if you resolve their problem. If they feel you acted quickly and to their satisfaction, up to 96% will do business with you again, and they will probably refer other people to you. 
  • A dissatisfied customer will tell 9-15 people about it. And approximately 13% of your dissatisfied customers will tell more than 20 people about their problem. 
  • Happy customers who have their problems resolved will tell 4-6 people about their positive experience. 
  • It costs five to six times as much to get a new (first time) customer as it does to keep a current one. 
  • – Customer loyalty can be worth up to 10 times as much as a single purchase.
Source: the White House Office of Consumer Affairs, Washington, DC.
  • It costs 6 times more to attract a new customer than it does to keep an old one.
  • Customer loyalty is, in most cases worth 10 times the price of a single purchase.
  • A typical business hears from only about 4% of its dissatisfied customers. 96% just go away and 91% will never come back.
  • 13% of the people who have service problems tell 20 others.
  • It takes 12 positive service incidents to make up for one negative incident.
  • 7 out of 10 customers will do business with you again if you resolve the complaint in their favour.

Source: “Understanding Customers” by Ruby Newell-Legner

So, just how good is your service?

What are you doing to keep your existing customers happy – or are you spending your profits unnecessarily on finding new customers?

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