Companies spend millions of dollars every year generating leads, creating demand, collecting and tracking data.
However, only 4% of Americans trust advertising the most as a source for product or service information.
How much of the marketing budget is spent on ensuring customers have an outstanding customer experience?
Based on my experience with clients and employers, typically there is four times more spent on getting new customers versus keeping current customers by improving their experience.
Following are 10 reasons you should focus on providing an outstanding customer experience:
- Good customer experiences generates more loyal customers who will spend more, have greater lifetime value and promote their positive experience with others thereby marketing your products and services for you far more effectively than you can for yourself.
- Bad customer experiences cause customers to leave.
- 82% of people have stopped doing business with a company due to a bad experience or poor customer service.
- 40% of people began buying a competitive product or service because of a reputation for great customer service.
- 55% of people are willing to recommend a company due to outstanding service -- moreso than product or price.
- 95% of customers have taken action as a result of a bad experience -- 79% told others about their experience, 85% wanted to warn others about doing business with the company.
- 85% of customers would pay 25% more to ensure a superior customer service experience.
- Word-of-mouth recommendations from customers, family, friends or colleagues, with good experiences, are more influential than advertising from the company.
- It's less expensive to keep an existing customer than it is to get a new customer.
- Providing an outstanding customer experience increases the opportunity to have "customers for life" which results in more revenue and greater profitability.