Market Directions
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Customer Service Facts
April 30, 2008
Customer Service 
In This Issue
Sharing Customer Service Stories Online
New Facts About Customers
Facts About Customer Service
More About Market Directions
Hello, 
 
Market Directions has gathered facts about customers demands, attitudes and behaviors towards customer service----
this week an article from emarketer.com about customers and complaints. 
 
Sincerely,
 

Mary Malaszek
617-323-1862
Chare 

Sharing Customer Service Stories Online

Fewer consumers suffer in silence.

Brand managers have long known that news-both good and bad-spreads quickly online. Now US consumers are using social media to share their customer care experiences.

More than 70% of US Internet users surveyed in February and March 2008 said they used social media at least sometimes to learn about customer care offered when considering a purchase, according to a Society for New Communications Research study commissioned by Nuance Communications.

More than nine out of 10 respondents agreed with the statement, "I have chosen companies/brands based on my customer care experiences."

Nearly three-quarters of respondents said they chose companies and brands based on customer care information which had been shared online.

More than eight out of 10 respondents said that "blogs, rating systems and discussion forums can give consumers a greater voice in effecting changes in customer care."

Although many respondents said that social media were useful for sharing customer care experiences, they didn't necessarily use social networks to look for that information. Search engines, ratings systems, discussion forums and blogs all rated higher than social networks for finding customer care experience information.

 

New Facts About Customers and Experiences

  • Satisfying and retaining current customers is 3 to 10 times cheaper than acquiring new customers
  • An average company loses between 10 and 30% of its customers each year
  • Dissatisfied customers whose complaints are taken care of, are more likely to remain loyal, and even become advocates, as those that are 'just' customers
  • Executives know that upgrades in contact center technologies will not help unless companies also change the way their people work
  • 85% of business leaders agree that traditional differentiators alone are no longer a sustainable businessstrategy (Shaw & Ivens)
  • 71% of business leaders believe that customer experience is the next corporate battleground (Shaw & Ivens)

Customers Paying it Forward

 14. 

A good customer experience is told to 8 other people

 15.  A bad customer experience is told to 22 other people

 16.  It takes 10 good experiences to make up for one bad one

17.   Seventy percent of buying experiences are based on how the customer feels they are being treated

18.   A typical company receive around 65% of its business from existing customers

19.   Seven out of 10 customers who switch to a competitor do so because of poor service

20.   Customers who rate you 5 on a 5 point scale are six times more likely to buy again, as opposed to if they only' gave you a four. 

21.   Around 90 percent of unhappy customers will not buy again from a company that disappointed them.

Market Directions presents you with selected facts that are important for most call centers.   The survey source is written in italic.

1.       Consumers who reach an automated system rather than a live person say they will do less  business with that company (Aspect Index 2007)

2.       Consumers who do not have to repeat information are 1.6 times more likely to conduct future business with a company (Aspect Index 2007)

3.       Consumers that are allowed to opt out of an automated system and reach an agent when needed are 1.9 times more likely to do future business. (Aspect Index 2007)

4.       Consumers on average prepare 10 minutes for a call and wait for 4.5 minutes to reach an agent. Yet, 62 percent of consumers hang-up (occasionally or almost always) before they are connected to an agent. (Aspect Index 2007)

5.       Those who have a typical consumer experience are more likely to hang up than those who have an exceptional experience.  (Aspect Index 2007)

6.       Three in ten consumers who are satisfied will conduct more business with a company; eight percent of those will do much more business. (Aspect Index 2007)

7.       Twenty percent of consumers are likely to switch companies based on their latest interaction. (Aspect Index 2007)

More Facts About Customer Service
 8.  92% of all customer interactions happen via the phone (Gartner)
 9.  85% of consumers are dissatisfied with their phone experience (Gartner)

10.  72% of all customers believe it takes too long to reach a live agent (Harris)

11.  69% said they were on hold for too long (Harris)

12.  50% of the people surveyed said that agents failed to answer their questions (Harris)

13.  44% said the information they received was not accurate (Harris)

More About Market Directions
 
Market Directions is a full service custom market research firm that helps companies to identify and clarify distinct marketplace opportunities. 
 
Since 1994, we have enabled organizations, both large and small, to understand their customers.  By asking the right questions and analyzing the answers, our unique, methodology enables CFOs, as well as senior marketing and sales executives, to significantly increase sales and gain measurable competitive advantage.   
 
Deliver

Our promise to you? That as a result of our work, you will understand your customers and your business in a whole new way. You will see your products and services as your key customers see them, and, equipped with this critical information, that you will save both money and time, delivering your products to new markets of eager, highly-qualified buyers.

 
Contact Information
Market Directions
Boston
800-475-9808