Trust and Loyalty are fast becoming cornerstones to competitive advantage in a world that is changing constantly. Reputation management – the management of trust and loyalty – needs to be an item on every board’s agenda. If it’s not on your company’s radar these ten reasons may help provide the motivation for its inclusion:
- A 5% reduction in the customer defection rate can increase profits by up to 95% – Bain & Company
- It costs 6 – 7 times more to acquire a new customer than retain an existing one – Bain & Company
- An average company loses between 10 – 30% of its customers annually – McKinsey
- 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
- 68% of customers leave because they were upset with the treatment they received whilst speaking to customer services – US Chamber of Commerce
- The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% – Marketing Metrics
- 96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back – 1st Financial Training services
- 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
- 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
- 55% of customers would pay extra to guarantee a better service – Defaqto research
For more see “50 Facts about Customer experience” (http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/ )