For companies who are looking to increase their bottom line and market share, there is a lot of supporting information that illustrates the fact that improving the customer experience through supply chain improvements will generate revenue and save costs. More and more companies realize the value in investing in their customer experience. But to help further appreciate the impact of this, I thought these statistics would be eye-opening to see.
Check out this list of 18 facts as published by the professionals.
1. 2.85% of business leaders agree that traditional differentiators alone are no longer a sustainable business strategy - Shaw & Ivens
2. 3.71% of business leaders believe that customer experience is the next corporate battleground - Shaw & Ivens
3. A 2% increase in customer retention has the same effect as decreasing costs by 10% - Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy
4. Customer profitability tends to increase over the life of a retained customer - Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy
5. Dissatisfied customers whose complaints are taken care of are more likely to remain loyal, and even become advocates, as those that are 'just' customers - Strauss & Seidel
6. Price is not the main reason for customer churn, it is actually due to the overall poor quality of customer service - Accenture global customer satisfaction report 2008.
7. A customer is 4 times more likely to defect to a competitor if the problem is service-related than price or product related - Bain & Company.
8. The probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20% - Marketing Metrics.
9. For every customer complaint there are 26 other unhappy customers who have remained silent - Lee Resource.
10. 96% of unhappy customers don't complain, however 91% of those will simply leave and never come back - 1Financial Training services.
11. Happy customers who get their issue resolved tell about 4-6 people about their experience - White House Office of Consumer Affair.
12. A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people - White House Office of Consumer Affairs.
13. 70% of buying experiences are based on how the customer feels they are being treated - McKinsey.
14. 55% of customers would pay extra to guarantee a better service - Defaqto research.
15. Customers who rate you 5 on a scale from 1 to 5 are six times more likely to buy from you again, compared to 'only' giving you a score of 4.8 - TeleFaction data research.
16. It takes 12 positive experiences to make up for one unresolved negative experience - "Understanding Customers" by Ruby Newell-Legner.
17. A 5% reduction in the customer defection rate can increase profits by 5-95% - Bain & Company.
18. It costs 6-7 times more to acquire a new customer than retain an existing one - Bain & Company.
If you are looking for a competitive edge or if your company needs to take itself to the next level, focusing on the supply chain is where it's at. Reach out to KDL to see how we can improve your customer's experience, bring visibility across your entire supply chain and reduce hard dollar costs.
See our case study for an example of how we help companies: