Introduction
According to Matt Davies Stockton, stellar customer service differentiates you from your competitor and that’s backed by data. When there’s no significant qualitative difference in the product or service you offer, customer service is all you have. Let’s check out a few customer service statistics and facts you shouldn’t ignore.
The Details
1. Good customer service leads to higher customer retention and profits – Surveys show that for 86% of your customers, good customer service can turn one-time clients into long-term loyal customers. More than two-thirds of your customers are willing to pay more for products and services from your brand if you’re offering a good customer service experience. A survey conducted by Salesforce Research showed that 86% of customers are more likely to engage in another purchase when they have a good customer experience.
This aligns with HubSpot Research’s survey that shows over 90% of customers are highly likely to make repeat purchases with companies that offer great customer experience. If you can deliver good customer service and increase your customer retention by just 5%, you can increase profits by 25%-95%. Now that’s a metric to chase after. Investing in customer retention is also often cheaper than acquiring new ones.
2. A higher NPS score is always good – Higher NPS scores allow you to extract more value from your customers. NPS (Net Promoter Score) is the gold standard customer experience metric. These scores are obtained with single-question surveys to customers.
If the score is over 9 on the survey, it means you have an NPS promoter, and a very loyal and enthusiastic customer. On the other hand, a person with a score less than 6 is a detractor, someone who is unhappy with the customer experience of your business. Data shows that businesses can get around 600% to 1400% more value from NPS promoters than detractors.
3. Bad customer service comes with high costs – Unless you’re a monopoly, bad customer experience has drastic consequences even if you have a stellar product and incredible competitive advantages. For instance, negative experiences are more memorable than positive ones. Research done by Ruby Newell-Legner shows that it takes around 12 positive customer experiences to make up for just one negative experience.
Around two-thirds of customers are willing to switch to a different brand because of one poor customer experience. This even affects B2B businesses. Surveys show that around 80% of B2B customers are willing to do business with a competitor after just one bad experience. Only 1 in 5 customers are more likely to go through with the purchase even after a poor customer experience. On the other hand, 4 in 5 customers give customer experience the same importance as the product or service. Only monopolies can thrive while delivering poor customer experience.
Conclusion
Matt Davies Stockton suggests that you keep the above-mentioned customer service statistics and facts in mind and change your business policies accordingly. Good customer service leads to higher customer retention, higher return on investments, and more such benefits.
