This document outlines several key statistics that highlight the importance of positive customer experience and service on brand perception and customer retention: (1) It costs 6 times more to attract a new customer than retain an existing one; (2) 89% of customers will purchase from a competitor after a poor customer experience; (3) Only 4% of dissatisfied customers complain directly while 96% stop doing business with the company.

1. The effects
of customer
experience and
service on brand
perception and
retention
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2. It costs 6 times more to attract a new
customer than it does to keep an old one.
–Understanding Customers by Rudy Newell-Legner
http://www.flickr.com/photos/walmartcorporate/5684305063/

3. 89%
of Consumers purchase from a competitor following a
poor customer experience.
- Harris Interactive, 2011 Customer Experience Improvement study
http://www.flickr.com/photos/criminalintent/162478786/

4. Only about 4% of dissatisfied customers complain.
96% just go away.
- Harris Interactive, 2011 Customer Experience Improvement study
http://www.flickr.com/photos/ivanwalsh/4617349366/

5. 50% of Consumers give a brand one week to respond to a service
concern before they stop doing business with them.
- Harris Interactive, 2011 Customer Experience Improvement study
http://www.flickr.com/photos/oxfordian/6408321285

6. Only 37% of Brand received “excellent” or “Good” customer
experience scores this year
- Harris Interactive, 2011 Customer Experience Improvement study
http://www.flickr.com/photos/spijker/3273982099

7. Only 1% of consumers say expectations for good customer
experience are always met
- Harris Interactive, 2011 Customer Experience Improvement study
http://www.flickr.com/photos/epsos/5652699228

8. US Businesses lose an estimated $83 Billion in sales
annually due to poor customer experiences
– Parature Customer Service Blog
http://www.flickr.com/photos/rednuht/479370088

9. Americans typically tell 24 people about negative customer
service, they only tell about 15 people about positive experiences
– 2012 American Express Global Customer Service Barometer
http://www.flickr.com/photos/thomashawk/2751554048

10. A 5% increase in customer retention increases profits up to 125%
– Bain & Company
http://www.flickr.com/photos/felstone/7819543656

11. A 2% increase in customer retention has the same
effect as decreasing costs by 10%
–Leading on the edge of chaos, Emmet Murphy and Mark Murphy
http://www.flickr.com/photos/zurichtourism/5161089722

12. Probability of selling to an existing customer: 60-70%,
Probability of selling to a new one: 5-20%
– Marketing Metrics
http://www.flickr.com/photos/thomashawk/21151707

13. Customer Loyalty can be worth
10 times as much as a single purchase
– White House Office of Consumer Affairs, Washington, D.C.
http://www.flickr.com/photos/donebythehandsofabrokenartist/4098652750/

14. It takes 12 positive service incidents to make up
for a negative one
-Understanding Customers by Rudy Newell-Legner
http://www.flickr.com/photos/mrs_log-

15. Customer profitability increases over the life of a
retained customer
– Leading on the edge for Chaos, Emmet Murphy and Mark Murphy
http://www.flickr.com/photos/26628378@N03/3153377556

16. 70% of customers
will do business with you again if you resolve their complaints
– Understanding Customers by Rudy Newell-Legner
http://www.flickr.com/photos/wongjunhao/3430562137

17. 73% of Consumers love a brand because of friendly customer service
– Harris Interactive, 2011 Customer Experience Improvement study
http://www.flickr.com/photos/samsungtomorrow/8494079316

18. 68% of
Customers leave because they think you don’t care about them
–Rockefeller Corporation
http://www.flickr.com/photos/wsdot/5448810225

19. Thanks
for reading.
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