There is no denying the role customer service plays in the overall brand loyalty and purchasing decisions of today’s increasingly demanding consumers. And contrary to the beliefs of today’s younger generations (Milennials, Gen Z), who generally grew up with businesses acquiescing to their every demand, customer relationships have not always been at the mercy of the consumer. In fact, it was only until the age of the Internet and expansion of communication channels that customers were given greater opportunities to explore alternative routes, leaving those businesses who placed less of a focus on the customer experience clamoring to keep up. The Age of the Seller has now succumbed to the Age of the Consumer.
A few statistics highlighting the expectations of today’s consumers:
- 89% of consumers who experience poor service with your brand will leave for your competition. (Forrester)
- 70% of buying experiences are based on how the customer feels they are being treated. (McKinsey)
- 78% of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience (American Express)
- On average, loyal customers are worth up to 10 times as much as their first purchase (White House Office of Consumer Affairs)
- It takes 12 positive experiences to make up for one unresolved negative experience (“Understanding Customers” by Ruby Newell-Legner)
- News of bad customer service reaches more than twice as many ears as praise for a good service experience (White House Office of Consumer Affairs)
- It is 6-7 times more expensive to acquire a new customer than it is to keep a current one (White House Office of Consumer Affairs)
- For every customer who bothers to complain, 26 other customers remain silent (White House Office of Consumer Affairs)
- Almost 9 out of 10 U.S. consumers say they would pay more to ensure a superior customer experience (Customer Experience Impact Report)
- 80% of companies say they deliver “superior” customer service, but only 8% of people think these same companies deliver “superior” customer service (Lee Resources)
