Keeping customers satisfied is essential to building a successful, growing business. While many companies work hard to increase sales, they may overlook the little things that keep customers happy and buying more. It is easier to accelerate your business by cultivating the customers you already have rather than constantly working to attract new customers.
Customer satisfaction research is not an end unto itself. The purpose, of course, in measuring customer satisfaction is to see where a company stands in this regard in the eyes of its customers, thereby enabling service and product improvements which will lead to higher satisfaction levels. The research is just one component in the quest to improve customer satisfaction. Improving customers’ satisfaction with your business translates directly to your bottom line. Still not sure you’re ready to invest in improving service?
Check out these amazing statistics:
- It costs between five and six times more to attract a new customer than to keep an existing customer.
- Companies can boost profits from 25 percent to 125 percent by retaining 5 percent more existing customers.
- Only one out of 25 dissatisfied customers will express dissatisfaction to you.
- Happy customers tell at least four others of a positive experience. Dissatisfied customers tell as many as 12 about a negative experience.
- Two-thirds of customers do not feel valued by those serving them.
- Acquiring new customers can cost five times more than satisfying and retaining current customers.
- A 2 percent increase in customer retention has the same effect on profits as cutting costs by 10 percent.
- The average company loses 10 percent of its customers each year.
- The customer profitability rate tends to increase over the life of a retained customer.
Sources: Extreme Management, Mark Stevens, 2001; Leading on the Edge of Chaos, Emmett C. Murphy and Mark A. Murphy, 2003