Why do Companies with Great Customer Service Succeed?

Why do Companies with Great CUSTOMER SERVICE Succeed? ( complaint is lodged c --. When a customer HOW QUICKLY DO CONSUMERS EXPECT A BRAND TO RESPOND? The Great Divide Percentage of respondents 100% 90% EMAIL TWITTER FORUM FACEBOOK 80% *Data from Consumers Residing in the UK 70% 60% 50 50% 42 42 40% 27 30% 21 19 17 16 18 20% 14 10 10% 65 6 Within Within Within Within Within Within 10 Mins 1 Hour 1 Day 3 Days 1 Week 28 Days 50% Only 50% of consumers give a brand only 1week to respond to a question before they stop doing business with them. 2 You might lose 50% of your customers! After poor customer servic WHERE DO CONSUMERS GO TO COMPLAIN? 26% After poor customer service, 26% of consumers post a negative comment on social networking site like Facebook or Twitter. 79% of those that complained about poor customer service had their complaints ignored. of those that complained about poor customer 21% service had their complaints answered. of those that did get a response, had positive 51% reactions to the brand that they were complaining about. 22% of those that did get a response, posted a positive comment about the organization. Key Takeaway Responses Can Go A Long A Way In Reinstilling Faith In A Consumer's Mind. When customer Service goes bad WHAT ARE THE CONSEQUENCES BUSINESSES FACE? What does bad customer service costs companies The cost of attracting a new customer compared to keeping an existing one. annually in the US and the world? 5 6-7 Times $338 Billion $83 Billion A - Cost of retaining an existing customer B - Cost of attracting a new customer People are twice as likely to talk about bad customer service than good customer service. 6 78% of customers have abandoned a 2 Times transaction due to poor customer service. 6 Buzz Buzz 89% A of customers have reported that they've stopped doing business with companies because of bad customer service. 3 Buzz around great customer service B - Buzz around bad customer service For on awesome customer service e - ence. WHAT WILL CUSTOMERS DO? 70% of consumers are willing to spend an average of: United United States Netherlands Italy Kingdom Canada of America 10% 11% 7% 9% 12% 12% 13% 22% 8% 9% Germany France Mexico Australia India more with companies that provide excellent customer service. A survey* conducted with US online adults ( ages 18+), who interacted with brands in last 90 days, proved great customer service is strongly correlated with loyalty. 7 Willingness to con sider the company for another purchase 0.71 Likelihood to switch 0.42 business to a competitor 064 Likelihood to recommend a friend or a colleague HIGH MODERATE LOW LOW MODERATE HIGH *North American Technographics Customer Experience Online Survey, 04 2012 (US) These numbers are correlated with Forrester's CXI ratings. Cor your customer WHAT DOES GOOD CUSTOMER SERVICE LOOK LIKE? When asked specifically how companies can better engage with consumers to spend more, respondents said the following: What makes a memorable experience that causes consumers to stick to a brand? 100% 54% 90% 73 80% Improve the overall customer 70% experience. 55 60% 52% 50% 36 40% 33 Make it easy to ask questions and access information before making a 30% 20% purchase. 10% 36% 0% Friendly Employees or Customer Personalized Experiences Service Improve search functionality and overall website usability. Representatives Brands with The ability to easily find a good reputation information or help they need CEI conducted a survey revealing where consumers say brands have fallen short. This data presents a clear picture of what matters to consumers. Knowing the priorities of consumers is important in helping you know what matters most in customer support. Various age groups are angered by various support phrases. 26-27% of the general population is annoyed by these phrases. Avoid these, no matter what your customer age demographic is. 6 of consumers ( ages 50+ ) find "We're sorry, but we're experiencing unusually heavy call 34% 58% 57% volumes. You can hold or of consumers noted that their said companies are clueless, it try back at another time." expectations were not met because sometimes feels like the consumer most annoying. the company was unavailable by knows more about the company phone or email. than the customer service agent. of consumers ( ages 18- 29 ) find "We're unable 32% to answer your question. Please call xxx-XXX- 56% 51% XXxx to speak to a representative from said companies are impersonal, sometimes they can't even get the said companies are slow to resolve XXx team." most issues. annoying. customer's name right. 34% 16% of consumers ( ages 50+ ) 29% find "Your call is important to us. Please said companies are forgetful, they don't even remember a customer said companies are anti social, they are nowhere to be found on social continue to hold." most who has recently talked to a networking sites. annoying. customer service agent. References: 1 - http://www.iabuk.net/sites/default/files/research-docs/IAB-and-Lightspeed-Research-UK_Social-Media.pdf 2 - http://www.rightnow.com/files/analy st-reports/RightNow_Customer_Experience_Impact_Report_North America_2011.pdf - http://www.oracle.com/us/products/applications/cust-exp-impact-report-epss-1560493.pdf 4 - http://www.inc.com/victor-ho/master-the-art-of-customer-loyalty.html 5 - http://www.mediapost.com/publications/article/122502/#axzz2i6NcDNZR 6 - http://about.americanexpress.com/news/pr/201V csbar.aspx AKISSmetrics www.medallia.com/assets/pdfs/ForresterBusinesslmpactOfCex.pdf %24 %24 |•1•1