Everyone should be aware of the adage that it costs six to seven times more to acquire a new customer than it does to retain an existing one.
Below are what we consider the top five customer service facts all marketers should be concerned about:
1. Nearly 75 percent of customers love a brand because of friendly service.
(Source: Harris Interactive Customer Experience Improvement Study, 2011)
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Read more2. Less than 5 percent of dissatisfied customers complain; the majority silently leaves.
(Source: Harris Interactive Customer Experience Improvement Study, 2011)
3. About 70 percent of customers leave because they think the brand doesn’t care about them.
(Source: Rockefeller Corporation)
4. Almost 90 percent of customers purchase from a competitor after a bad customer experience.
(Source: Harris Interactive, Customer Experience Improvement Study, 2011)
5. A 5 percent increase in customer retention can increase profits by more than 100 percent and compares to reducing costs by more than 10 percent.
(Source: Bain & Company) (Source: “Leading on the Edge of Chaos,” Murphy & Murphy, 2002)
Clearly, developing a relevant and differentiating brand experience is not enough. Your brand actually has to deliver that brand experience through good customer service. The most successful brands ensure the brand experience is cascaded through all points of contact with the customer. The five reasons above poignantly demonstrate why brand cascading is so important in today’s environment of nearly unlimited brand choice.
