Outside in facts

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Outside in facts

  1. 1. FACTS
  2. 2. Facts about customer experiences and referrals <ul><li>96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back - 1st Financial Training services </li></ul><ul><li>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 </li></ul><ul><li>Happy customers who get their issue resolved tell about 4-6 people about their experience - White House Office of Consumer Affairs </li></ul><ul><li>Happy customers who get their issue resolved tell about 4-6 people about their experience - White House Office of Consumer Affairs </li></ul><ul><li>70% of buying experiences are based on how the customer feels they are being treated - McKinsey </li></ul><ul><li>55% of customers would pay extra to guarantee a better service ­- Defaqto research </li></ul><ul><li>Price is not the main reason for customer churn, it is actually due to the overall poor quality of customer service - Accenture global customer satisfaction report 2008 </li></ul><ul><li>94% of customers do not want to be transferred to another representative more than once - Mobius Poll 2002 </li></ul><ul><li>80% of customers prefer to speak with a representative at the weekends - Mobius Poll 2002 </li></ul><ul><li>84% of customers are frustrated when a representative does not have immediate access to account information - Mobius Poll 2002 </li></ul><ul><li>Customer who rate you 5 on a scale from 1 to 5 are six times more likely to buy from you again, as to if they only gave you a score of 4.8 - TeleFaction data research </li></ul><ul><li>It takes 12 positive experiences to make up for one unresolved negative experience - Understanding Customers’ by Ruby Newell-Legner </li></ul>
  3. 3. Facts about customer retention and churn <ul><li>A 5% reduction in the customer defection rate can increase profits by 5 ­ 95% - Bain & Company </li></ul><ul><li>A 50% reduction in customer base would occur if left alone over a 5 year period - Bain & Company </li></ul><ul><li>It costs 6-­7 times more to acquire a new customer than retain an existing one - Bain & Company </li></ul><ul><li>An average company loses between 10-30% of its customers annually - McKinsey </li></ul><ul><li>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 </li></ul><ul><li>68% of customers leave because they were upset with the treatment they received whilst speaking to customer services ­ US Chamber of Commerce </li></ul><ul><li>Dissatisfied customers whose complaints are taken care of are more likely to remain loyal, and even become advocates, as those that are just customers - Strauss & Seidel 8. The probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20% - Marketing Metrics </li></ul><ul><li>For every customer complaint, there are 26 other unhappy customers who have remained silent - Lee Resource </li></ul><ul><li>96% of unhappy customers don¹t complain, however 91% of those will simply leave and never come back - 1st Financial Training services </li></ul><ul><li>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 </li></ul><ul><li>Customer profitability tends to increase over the life of a retained customer - Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy </li></ul><ul><li>In the US alone, people that switch from insurance providers represent a $7.6 billion market in annual premiums - JD Power & Associates </li></ul>
  4. 4. Facts about customer service and contact / call centres <ul><li>A good customer service strategy should balance costs, quality and revenues. Companies that restructure call centres in this way can often cut their costs by up to 35% and boost the revenue they generate by as much as 35%, thereby transforming them into strategic assets providing a competitive advantage - McKinsey </li></ul><ul><li>Research shows that a 10% increase in customer retention levels result in a 30% increase in the value of the company - Bain & Co. </li></ul><ul><li>76% of companies motivate employees to treat customers fairly, and 62% provide effective tools and training to gain trust with their customers - Peppers and Rogers Group, 2009 Customer Experience Maturity Monitor </li></ul><ul><li>70% of customer experience management best in class adopters use customer feedback to make strategic decision. 50% of industry-average organizations and 29% of laggards do - Aberdeen Group </li></ul><ul><li>81% of companies with strong capabilities and competencies for delivering customer experience excellence are outperforming their competitors - Peppers and Rogers, 2009 Customer Experience Maturity Monitor </li></ul><ul><li>72% of all customers believe it takes too long to reach a live agent ­ Harris </li></ul><ul><li>69% said they were on hold for too long - Harris </li></ul><ul><li>50% of the people survey said that agents failed to answer their questions - Harris </li></ul><ul><li>44% said the information they received was not accurate - Harris </li></ul><ul><li>92% of all interactions happen via the phone - Gartner </li></ul><ul><li>85% of consumers are dissatisfied with their phone experience - Gartner </li></ul><ul><li>Even in a negative economy, customer experience is a high priority for consumers, with 60% often or always paying more for a better experience. - Harris Interactive, Customer Experience Impact Report </li></ul>
  5. 5. Employee facts <ul><li>The average recruitment cost of filling a vacancy is £4333, increasing to £7750 when organizations are also calculating the associated labour turnover costs - The Chartered Institute of Personnel and Development Annual Survey </li></ul><ul><li>Employee churn in the private sector is 22.6% - The Chartered Institute of Personnel and Development Annual Survey </li></ul><ul><li>An average of £1202 is spent on employee training - The Chartered Institute of Personnel and Development Annual Survey </li></ul>
  6. 6. Facts about customer strategy <ul><li>90% of North American firms view customer experience as important or critical to 2010 plans. 80% of firms would like to use customer experience as a form of differentiation. – Forrester’s: The State of Customer Experience 2010. </li></ul><ul><li>85% of business leaders agree that traditional differentiators alone are no longer a sustainable business strategy - Shaw & Ivens </li></ul><ul><li>71% of business leaders believe that customer experience is the next corporate battleground – Shaw & Ivens </li></ul><ul><li>eCommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers – McKinsey </li></ul><ul><li>Reducing time and money on explaining business procedures and costs with new customers will save overall – Marketing Management; Spiro, Rich, Stanton 2008 </li></ul><ul><li>73% of marketing managers of various large companies credit ‘Repeat purchase behaviour’ as integral to the definition of successful customer engagement – ­Forbes Magazine </li></ul><ul><li>A survey asking which is the most important marketing objectives, shows that 29.9% think that it should be customer acquisition, and 26.6% think that it is customer retention. However 62.2% admit that they concentrate on customer acquisition, with only 20.6% focusing on customer acquisition. – eMarketer </li></ul><ul><li>55% of current marketing spend is on new customer acquisition – McKinsey </li></ul><ul><li>33% of current marketing spend is on brand awareness – McKinsey </li></ul><ul><li>Only 12% of current marketing spend is on customer retention – McKinsey </li></ul>

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