Lies, Damn Lies, and Statistics
In ancient times they had no Customer Service Statistics so they had to fall back on lies.
Sometimes though, the numbers are the story. So here are a few that will make you think:
- A 5% reduction in the customer defection rate can increase profits by 25-95%. -Bain & Co/HBR
- A 2% increase in customer retention has the same effect as decreasing costs by 10%. -Emmet and Mark Murphy
- The probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20%. -Marketing Metrics
- Customer profitability tends to increase over the life of a retained customer. -Emmet and Mark Murphy
- 55% of current marketing budget is spent is on new customer acquisition and only 12% on customer retention. -McKinsey
- It is 6 to 7 times more expensive to acquire new customers than it is to keep a current one. -White House Office of Consumer Affairs
- A 10% increase in customer retention levels result in a 30% increase in the value of the company. -Bain & Co
- Most important marketing objectives? 29.9% think it should be customer acquisition, and 26.6% think it is customer retention; however, 62.2% admit that they concentrate on customer acquisition, with only 20.6% focusing on customer retention. –Emarketer
- 80% of your future profits will come from just 20% of your existing customers. -Gartner
- A 10% increase in customer retention yields a 30% increase in the value of the company. -Bain & Co
- Repeat customers spend 33% more compared to new customers. -Laura Lake
Pick a couple of these customer service statistics – and reflect on the improvements in profitability that would result in bettering your existing metrics.
Have a review of the features of a real-time feedback tool to see how quickly customer loyalty can be improved