Thursday, October 31, 2013

A Ton of Scary #CustExp Quotes and Stats

Image courtesy of hagerstenguy
Happy Halloween! Let's celebrate Halloween customer experience style by taking a look at some scary reasons you need to be focusing on the employee experience and the customer experience. Why? Well...

The thing is, every brand has a lifespan – because every customer has an attention span.
-Mark Di Somma on Branding Strategy Insider

There are so many reasons to focus on a great customer experience, so if you need help sealing the deal with your executives, these stats ought to be helpful.

73% of people surveyed wouldn't care if the brands they used disappeared from their lives.
Source: Co.Exist

Globally, more people trust regular employees to tell the truth than CEOs (50% vs. 43%).
Source: 2013 Edelman Trust Barometer

More than 70% of customers surveyed believe small businesses understand their customer better than large companies, know their business/product better than large companies, provide a more personal customer service experience than large companies, and are more concerned about my needs than larger companies.
Source: American Express Global Customer Service Barometer, 2012

It is 6 to 7 times more expensive to acquire new customers than it is to keep a current one.
Source: White House Office of Consumer Affairs

It takes 12 positive experiences to make up for one unresolved negative experience.
Source: HelpScout

Millennials believe that other consumers care more about their shopping experiences than companies do – that’s why they share their opinions online.
Source: OECD “Electronic and Mobile Commerce,” 2013

87% of global consumers believe business should place at least equal emphasis on social interests as business interests, and ‘purpose’ has increased as a purchase trigger by 26% since 2008.
Source: Edelman Trust Barometer, 2013

While 50% of Americans trust businesses to do what is right, only 15% trust business leaders to tell the truth.
Source: Edelman Trust Barometer, 2013

Only 34% of workers say, “Employees [in their company] have a high level of trust in management and the organization.
Source: Interaction Associates

70% of buying experiences are based on how the customer feels he or she is being treated.
Source: McKinsey

$83 billion is estimated to be lost by U.S. businesses every year due to poor customer service.
Source: Genesys

Businesses lose $289 each year for every customer who leaves due to poor service.
Source: Genesys

On average, loyal customers are worth up to 10 times as much as their first purchase.
Source: White House Office of Consumer Affairs

In 2012, only 37% of US companies earned a customer experience index rating of “excellent” or “good.”
Source: Forrester

80% of big companies described themselves as delivering “superior” service, but only 8% of customers say they’ve experienced “superior” service from these companies.
Source: The New Yorker

In the past year, two in five consumers or more in most markets indicate that they have not completed a transaction or made an intended purchase because of poor customer service.
Source: American Express Global Customer Service Barometer

Thanks to SAP for compiling 99 Facts on the Future of Business, where many of the above stats were found.

Accenture's recent Global Consumer Pulse Research had some startling stats, as well, with the daunting statement: "The metrics aren't moving."

66% of consumers switched companies in at least one of ten industries due to poor service in the past year. 82% of consumers felt their service provider could have done something to prevent switching. 55% say they’d have stayed if the company had proactively contacted them, and 51% would have stayed had the company simply recognized them and rewarded them for their business.
Source: Accenture Global Consumer Pulse Research, 2013

What are some of those frustrating interactions for customers that can be fixed to prevent switching behavior?
  • Contacting a company multiple times for the same reason (91%)
  • Being put on hold for a long time (90%)
  • Repeating your issue to several company reps (89%)
  • Not being easy to do business with (85%)
  • Not delivering on promises (84%)
  • Inconsistencies in multichannel experiences (58%)
A few great stats from Kissmetrics (click link for sources):

Only 50% of consumers give a brand only 1 week to respond to a question before they stop doing business with them.

After poor customer service, 26% of consumers post a negative comment on social networking sites like Facebook or Twitter.

79% of those who complained about poor customer service had their complaints ignored.

57% of survey respondents said companies are clueless, it sometimes feels like the consumer knows more about the company than the customer service agent.

Some other facts...

For every customer who bothers to complain, 26 others remain silent.
Source: White House Office of Consumer Affairs

Consumers are two times more likely to share their bad customer service experiences than they are to talk about positive experiences.
Source: 2012 Global Customer Service Barometer

A customer is 4 times more likely to buy from a competitor if the problem is service related vs. price or product related.
Source: Bain & Co.

A 10% increase in customer retention levels result in a 30% increase in the value of the company. Source: Bain & Co

I think there's a lot of compelling information here. If these stats don't scare you into focusing on the customer experience, I'm not sure what will. What's stopping you or your executives from focusing on the employee experience and the customer experience?

Although your customers won't love you if you give bad service, your competitors will.
Kate Zabriskie

6 comments:

  1. Annette

    Liked the list.

    These two stuck out most for me:

    1. Globally, more people trust regular employees to tell the truth than CEOs (50% vs. 43%).
    2. While 50% of Americans trust businesses to do what is right, only 15% trust business leaders to tell the truth.

    Isn't it a sad state that we think that about our "leaders"?

    ReplyDelete
    Replies
    1. Thanks, James. Yup, I do believe we have a leadership problem. :-(

      Annette :-)

      Delete
    2. Hi Annette,
      Great effort putting all of these together. Following James tack, the following two stood out for me:
      79% of those who complained about poor customer service had their complaints ignored.

      57% of survey respondents said companies are clueless, it sometimes feels like the consumer knows more about the company than the customer service agent.

      Shocking! And, a real indictment.

      Adrian

      Delete
    3. Thanks, Adrian. Yea, those are both extremely painful to read. A complaint is a gift - and such a great opportunity for business to improve and grow. It's shameful!

      Annette :-)

      Delete
  2. Powerful stuff Annette!

    The stat that sticks out for me is that customers are 4 times more likely to leave for service issue than product issue. Now obviously they are absolutely linked buy how often does a company put all it's effort into finishing a product and getting it to market quickly without the same level of investment in the support model.

    And we know that the customer will feel "social pain" when they are let down, and unlike physical pain they will have the same painful sensation whenever they think about it. So they are unlikely ever to go back.

    ReplyDelete
    Replies
    1. Thanks, Dougie, for adding your thoughts. Great points.

      Annette :-)

      Delete