We all know that improving the customer experience can give a boost to our businesses right? We know this because every man and his dog keeps telling us it is so, and they must be right mustn’t they? You see the problem here? Simply believing what you are told is not a great way to make informed business decision.
Luckily, the value of raising the customer experience, by gathering and interrogating Voice of the Customer (VoC) data, simply speaks for itself. This proof comes in the form of some of the incredible statistics that we have found, from multiple sources that were derived from mining VoC data. We have reproduced a few of the most interesting that we could find below:
A bad customer experience is good for your competitors: On average, a customer is around 4 times more likely to move to a competitors company due to a service related problem, rather than a product related problem.
Loyal customers are more receptive: On average, the chance of selling to an existing customer runs at around 65%. The chance of selling to a fresh customer is between just 5% and 20%.
Not all unhappy customers exercise their voice: For each customer that comes forward with a complaint about the customer experience, there are on average, 25 more that are similarly distressed, yet remain silent.
Improving the customer experience is cost effective: In general, reducing customer churn by just 2% gives the same financial benefit as reducing costs by 10%.
A bad customer experience can go viral: For each customer that is unhappy with the service they have received, they will tell on average between 9 and 15 people about their bad experience. Some, around 13% of them, will tell more than 20 people.
Customers see value in a better customer experience: Around 55% of customers don’t mind paying a little more for a product, if they can be sure to receive better service.
Customers are slow to forget: It can take up to 12 positive experiences to make up for a single negative experience in the eyes of the average consumer.
Now of course, these are very generalized statistics, and as they were pulled from multiple sources, they have been derived from the interrogation of VoC data across different markets and regions.
However, although the actually numbers may vary between market/region, we can probably safely take these statistics as some kind of indication of overall consumer trends. Each of these facts underpins the value of raising the level of the customer experience, and each of them was gained by listening to the Voice of the Customer, and mining the associated VoC data.
By Mac Wheeler