The key to your business is happy customers. Happy customers, from your perspective, are gained by giving them an experience they enjoy and appreciate.
Customer service stats can help you improve your CRM and give your customers the experience they crave and that you want to deliver to make them happy.
Here are a few of those stats.
Holding on Is Cheaper Than Finding New Customers
Consider how much you spend on marketing, sales, promotions, etc., to open the doors to new customers. You do not have to do any of that if you can convince your existing customers to return. One study found customer acquisition is up to 7 times more expensive than customer retention.
That finding means spending more on customer service for existing customers will get you more business and improve brand loyalty, which is less expensive than trying to break into a new market or garner new customers. In most cases, the cost of retaining customers is much less than the average marketing budget for attracting new customers.
Bad Customer Experiences Reduce Sales
Most American customers have avoided making a purchase because of a prior bad customer service experience. If you think about it, that is just common sense. Everyone has had at least one customer service experience that left them unsatisfied, disappointed, or annoyed.
That one bad experience makes most people far less likely to return if there is any alternative that is just slightly less onerous.
Pleasant Reps Make the Experience
Think about your own daily lives. When you experience a customer representative that makes it clear they are not having a good day, provides you with bad service, or is rude, your opinion of the place they work for plummets. When you have a good experience with a customer service representative, you walk away feeling good and are likely to return.
According to that study, 62 percent of customers stated that knowledgeable, friendly representatives were vital in making purchases. A representative that goes out of their way to make the experience enjoyable and knows what they are talking about is far more likely to lock in that sale.
Angry Customers Comment Online
Thirty-five percent of customers post negative experiences online. While most people take online complaints with a grain of salt, several nasty comments can affect how people perceive that company. When an online listing is all potential customers see, attitudes and opinions get formed, which can result in a potential customer moving on to a competitor.
Conversely, getting customers to post about positive experiences can influence customers. Ask them to post and make it easy for them to do so. At least a few positive online posts will offset the negative posts.
Excellent Customer Service Creates Sales
A study by Bain and Company showed that customers are four times as likely to buy from your competitors if their experience with you was negative. If the issue is product related (unless you are the manufacturer), chances are it is not a deal killer. After all, they sought out your product for a reason.
If, however, their customer service experience was terrible, and all things are equal, they are far more likely to look at a competitor. The concept backing this is the “path of least resistance.” If all things are equal, we always choose that path over the unpleasant or stressful one.
Dissatisfied Customers Talk
Almost all these customer service stats are just common sense. Per Salesforce, over 60 percent of customers will tell their friends and family about a bad customer service experience. That makes sense if you think about your behavior. If a customer service experience is above and beyond, you might talk about it. Think about how many good experiences you never mention, though. Customer satisfaction is crucial if you are a customer service provider. It will also improve your business reputation and sales.
Now, think about the customer service experience you do mention. You tell family members, friends, neighbors, co-workers, and just about anyone that listens about your bad experience and how rudely you were treated. Those comments stick with people, just like angry comments about a business others make tend to stick with you.
Customer Will Pay for Pleasantness
The Salesforce study also indicates that over two-thirds of customers will pay more for a pleasant customer service experience. Probably the best example of this is an upgrade on an airplane. If you can upgrade for free or at a nominal charge, chances are you will. You will do this because the coach experience is rarely pleasant, even unproblematic.
You are willing to pay extra if the price is right to get that extra legroom or a more comfortable seat. You also are willing to pay extra to be treated by airline staff as a special customer. Very few people want the “coach experience” if they can help it, and while the product is much more pleasant, the overall experience with the staff is too.
Slow and Ineffective Equals Irate
Another CS study showed that ineffectiveness was the major complaint, but slowness was also a significant frustration to customers interacting with representatives. What your representatives can pull off for a customer matters, but so does acknowledging that customer before they lose patience.
Almost 12 percent of customers list speed as a significant frustration when dealing with customer service. Likely, that stat pertains to customers spending excessive time on hold, but even in person, every customer wants to be acknowledged. They want to feel like you care about their concerns and want those concerns addressed promptly.
Make It Personal
According to one survey, individually tailored experiences can boost customer conversion rates by as much as 8 percent. The personal experience works on two core principles of customer service.
First, a personalized experience makes someone feel good. The customer feels special.
The second principle is more nuanced. Most people find it much harder to complain if they have a connection with a representative and think that a bad report could negatively affect that person.
Each of these customer service stats emphasizes how customer service is vital to success in tangible, measurable ways. Ensure your staff is prompt, effective, friendly, and professional, and your customers will likely return, saving you money in marketing and avoiding bad reviews. It is that simple.