Why Companies Should Invest in the Customer Experience

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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.
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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. But... Only 4% of Americans 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% trust independent sources with whom they have a personal relationship over advertising. These include: Family Friends 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. Airline JetBlue Auto Insurance USAA Brokerage & Investments Vanguard Cable & Satellite TV Verizon Cell Phone Service Metro PCS Computer Hardware Apple Consumer Software Symantec Credit Cards American Express Dept., Wholesale & Specialty Stores Costco Grocery & Supermarkets Trader Joe's Health Insurance Kaiser Permanents Life Insurance State Farm Online Search & Information Google Online Shopping Amazon.com