Why Companies Should Invest in the Customer Experience
Companies spend millions on advertising every year, but is it worth it?
Sure, companies need to get their names out there, but maybe even more important for the acquisition of new customers are the experiences of existing ones.
The Value of Customer Experience
Good Experiences Grab Customers
40% of people began purchasing from a competitive brand because of its reputation for great customer service
55% are willing to recommend a company due to outstanding service, more so than product or price
85% would pay up to 25% more to ensure a superior customer service experience
Top Reasons Why Customers Switch Brands
Interaction with a rude employee
Unexpected charge or fee
Poor quality of product or service
Bad Experiences Push Them Away
82% of people have stopped doing business with a company due to bad customer service
95% of customers have taken action as a result of a bad experience. Of those, 79% told others about their experience.
85% wanted to warn others about doing business with the company
66% wanted to discourage others from buying from the company
55% wanted to vent anger
24% wanted to see if the company would take action to resolve the issue
The Power of Persuasion
The Great Divid
Businesses are expected to spend $214.3 Billion in advertising in 2011.
Only 4% of Americans trust advertising the most as a source for product or service information.
Though significantly more money is spent on advertising than customer service, a recent study shows word-of-mouth recommendations from customers with good experiences are more influential than ads.
83% trust independent sources with whom they have a personal relationship over advertising.
Where the Customer Is King
In terms of good customer experiences, these companies get it right. Satmetrix recently ranked companies with the best customer loyalty in a variety of industries.
Brokerage & Investments
Cable & Satellite TV
Cell Phone Service
Dept., Wholesale & Specialty Stores
Grocery & Supermarkets
Online Search & Information