Why Companies Should Invest in the Customer Experience

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 r*******te Good Experiences Grab Customers Bad Experiences Push Them Away 40% began purchasing from a competitive brand because of its reputation for of people great customer service 82% have stopped doing business with a of people company due to bad customer service 55% of customers have taken action as a result 95% of a bad experience. Of those, 79% told others about their experience. are willing to recommend a company due to outstanding service, more so than product or price would pay up to 25% more to ensure a 85% superior customer service experience 55% 66% wanted to 85% vent anger R Top Reasons Why Customers Switch Brands wanted to discourage others from buying from the company wanted to warn others about doing business with the company wanted to see if the Interaction with a rude employee 24% company would take action to resolve the issue A Unexpected charge or fee A Poor quality of product or service The Power of Persuasion The Great Divide 4% of Americans Only Businesses are expected to spend $214.3 Billion But... in advertising in 2011. trust advertising the most as a source for product or service information. Trusted Sources 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% İİİİTİİ These #n: Family Friends trust independent sources with whom they have a personal relationship over advertising. include: Colleagues 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 Auto Airline Insurance JetBlue USAA Vanguard Verizon Cell Phone Service Credit Computer Hardware Consumer Software Cards Metro PCS Apple Symantec American Express Dept., Wholesale & Specialty Stores Grocery & Supermarkets Health Life Insurance Insurance %24 Costco Trader Joe's Kaiser Permanente State Farm Online Search Online & Information Shopping Google Amazon.com zendesk Sources: Harris Interactive, RightNow, TechCrunch, Satmetrix, SNL Kagan LOVE YOUR HELP DESK