Secrets of Success

Secrets of Success

A business blog by Robin Martin

Improving Customer Service can Increase Revenue and Save Costs

...but one bad experience can drive your customers away!

It still surprises me – that in these difficult times when people face multiple business interruptions due to: Covid, delays to the supply chain, lack of people to work in your business, and costs increases that are not of your own making ( inflation)that many business owners do not appear to look at or focus on improving Customer Experience.

Why is this so?

Every SME should try to improve Customer Experience. It can help increase sales, save costs, and comes with many other benefits that can help you thrive in even the most difficult of times.

The numbers don’t lie. Research from many reputable sources clearly shows this to be true. During difficult times, improving customer experience is one thing that you can easily change. 

In my own experience, locally, I could use examples of what does happen – the good and the not so good – but that makes the story personal and thus not as effective as it could be. To be fair I have had some wonderfully positive experiences at local restaurants, building suppliers, my bank, and retailers – and some not so good experiences from a health provider, the cinema and an alterations shop.

Here are 10 great reasons why you should focus on treating your customers exceptionally well

1

Price is not the main reason for customer churn, it is actually due to the overall poor quality of customer service

Price is not the main reason for customer churn, it is actually due to the overall poor quality of customer service

2

A customer is 4 times more likely to defect to a competitor if the problem is service-related than price or product-related

Treating customers poorly is a great way to lose business.

3

The probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20%

Customer retention is much more profitable than customer acquisition.

4

For every customer complaint, there are 26 other unhappy customers who have remained silent

This is a profound insight, as it reminds us that a good number of customers don’t actually communicate to businesses that they are unhappy — they just leave. Or to put it another way… 96% of unhappy customers don’t complain and most of them will simply leave and never come back.

5

A 2% in customer retention has the same effect as decreasing costs by 10%

That’s right, you can actually save costs to your business by keeping your customers happy!

6

A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people

Bad news travels fast and a bad reputation in a small local market can have huge negative effects for your business.

7

Happy customers who have an issue resolved will go on to tell 4-6 people about their positive experience

Conversely, good news also travels, and people are much more likely to buy from businesses that they’ve heard good things about.

8

70% of buying experiences are based on how the customer feels they are being treated

Have you ever walked away from a purchase because you were left to wait too long or were treated poorly? I know I have!

9

86% of buyers are willing to pay more for a great customer experience

…and, the more expensive the item, the more they are willing to pay, according to a research from PWC.

10

 It takes 12 positive experiences to make up for one unresolved negative experience

That’s even if you get the chance to save grace after leaving someone with a bad memory of dealing with you.

Get some help and support now – Book a FREE Consultation and Report with me today.

I have the experience, skills and have achieved results across a range of industries and positions to make a difference to you and your needs.

I can help you, so Get in touch.

Robin Martin

P.S. This article is part of my Secrets of Success series, aimed at helping business owners and entrepreneurs with some of the key components of business success. The insights I wish I’d had at the start of my business career. I hope that by passing on these little gems of knowledge I can give you some support and help you along the pathway to growth and prosperity.

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