Studies have shown that it costs 6 to 7 times more to acquire a new customer than keep an old one, outpacing your competition depends upon having a loyal tribe of happy customers.
On average, loyal customers are worth up to 10 times as much as their first purchase.
A 2011 report published by American express revealed that 3 out of 5 customers were willing to give up a former favorite brand in order to have a better service experience.
Even more telling are the results of the 2010 RightNow Customer Experience Impact report, which revealed that 9 in 10 Americans are willing to spend more with companies they believe provide excellent customer service.
Eighty percent of respondents shared the belief that smaller companies place a greater emphasis on service than larger companies, meaning … small business success is highly dependent on the satisfied customer.
Will bad service really scare customers away from your business? The data presents a strong case for a resounding “yes.”
Consumer Reports surveys have shown that nearly 91 percent of customers will not do business with you a second time if you botch the first encounter. It was even uncovered that two-thirds of customers have walked out of a store when they felt the service was subpar.
The amount of customers willing to immediately abandon a business reached nearly 70 percent when it came to poor service on the phone, conclusively showing that customers are willing to shut you out if you don’t provide the quality of service they expect.
The White House Office of Consumer Affairs revealed a startling statistic on how service can silently affect your bottom line: For every customer who bothers to complain, nearly 26 others remain silent.
A Corporate executive Board (CeB) study published by the Harvard Business Review, which included 7,000 consumers across the United States, United Kingdom and Australia, showed that loyalty to brands is almost impossible to achieve without one key element: Of those consumers who said that they had a strong brand relationship, 64% cited shared values as the primary reason.
Shared values are by far the largest driver of brand loyalty.
According to the CeB, who researched the topic of brand loyalty for more than a year, consumers everywhere stated that they were loyal “not to companies, but to beliefs.”