I received the following email from Gary Ford (published with his permission) and was really impressed with some of these stats. I know as a consumer I certainly agree with a lot of them, especially #6 about not complaining but never going back. These points make it very clear where your priorities as a business should be.
1. 65% of customers leave because they feel unappreciated and only 9% leave because of price -Gary Ford “Life is Management”.
2. 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.
3. The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% – Marketing Metrics.
4. For every customer complaint there are 26 other unhappy customers who have remained silent -Lee Resource.
5. 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.
6. 96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back – 1Financial Training services.
7. 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.
8. Happy customers who get their issue resolved tell about 4-6 people about their experience. – White House Office of Consumer Affair.
9. 70% of buying experiences are based on how the customer feels they are being treated – McKinsey.
10. 55% of customers would pay extra to guarantee a better service – Defaqto research.
11. Customers who rate you 5 on a scale from 1 to 5 are six times more likely to buy from you again, compared to ‘only’ giving you a score of 4.8. – TeleFaction data research.
12. It takes 12 positive experiences to make up for one unresolved negative experience – “Understanding Customers” by Ruby Newell-Legner.
13. A 5% reduction in the customer defection rate can increase profits by 5 – 95% – Bain & Company.
14. It costs 6-7 times more to acquire a new customer than retain an existing one – Bain & Company.
15. eCommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers – McKinsey.
Check out Gary Ford at www.lifeissales.ca for all the your training and motivational needs. I met him at an event and he is a very entertaining and informative speaker.
To your Online Success,