The following is a guest blog written by Mary Murcott, President of the Customer Experience Institute at Dialog Direct. Learn more about Dialog Direct by visiting their website.
There are only two ways to build a business: retain existing customers and acquire new ones. Great customer service and satisfaction are the key to both because most customers are acquired through positive word of mouth. So you would expect most companies to be fully focused on providing exceptional customer service and experiences, but that doesn’t seem to be the case.
Every two years, Dialog Direct partners with CCMC (customer care measurement & consulting), the W.P Carey School of Business at Arizona State University and the Center for Services Leadership to conduct the Customer Rage Study to gauge how customers view companies and how retailers and etailers can address areas of weakness that cause them to lose customers. The study identifies customer problems and addresses the nagging question:
Why are customer service and satisfaction still declining, despite their paramount importance and bottom line impact?
The study revealed that, in 2015, $202 billion were at risk due to customer problems with products/services. Key takeaways:
– 66% of customers with problems experienced rage
– 60% identified wasted time as the biggest damage
– Only 35% were satisfied with their first contact
– Only 14% got problem resolved upon first contact
– It takes an average of 4.2 contacts to satisfy the complainant
– Nearly one in four wants revenge
– If they become satisfied, 48% of customers would still recommend the brand
– When providing both monetary and non-monetary remedies, satisfaction almost doubled from 37% to 73%
What are the implications? Continue reading