7 Reasons Why Customer Experience and Retention Matters

Do you need to justify an investment in improving customer service to yourself or your boss? Expenses related to improving customer experience - customer survey tools, incentives, and rewards - may not have a direct return on investment, but it can result in a boost in profitability for your business. In this post, we're going to share seven statistics from customer experience and retention studies that will convince you to invest more in customer experience and retention.

#1: 67% of consumers list bad customer experience as one of the primary reasons for churning. (Customer Experience for Executives)

Don't want to lose your customers? Give them a great customer experience. Customers that switch over to competitors when they are seeking better customer service.

#2: 86% of customers are willing to pay up to 25% more for a better customer experience. (Customer Experience Impact Report)

Justifying poor customer service with lower prices isn't going to help you keep your customers. Customers have demonstrated in their shopping habits and survey answers that they are willing to pay more to have a better customer service experience.

#3: Globally, the average value of a lost customer is $243. (Fastest Way to Lose Customers)

In profitability terms, every customer you save with great customer service saves your business an average lifetime value of $243. Of course, that's just the average customer's value.

#4: It costs 16 times more to bring a new customer up to the same level as a current one. (Customer Retention Stats)

You've likely heard that it costs more to acquire a new customer than to retain an existing customer. There are many reasons why, starting with this one - loyal customers tend to buy more. Hence, it will cost a lot more to get a new customer to spend the same amount a loyal customer would.
#5: The probability of selling to an existing customer is 60 to 70%. The probability of selling to a new prospect is 5 to 20%. (Small Biz Trends)

Want to increase your conversion rate? Keep your customers satisfied. Existing customers are going to be more likely to convert when you send them an offer, making your marketing and advertising efforts to your existing customer database much more lucrative.

#6: 80% of your future profits will come from just 20% of your existing customers. (22 Customer Retention Statistics)

Since loyal customers buy more, it's no surprise that your business's future profits will rely on the number of loyal customers you have. From this research, businesses can be assured that the customers whose experiences they invest in will be the ones that spend the most.

#7: 86% of consumers engage with a brand they are loyal to by recommending it to others. (Driving Consumer Preference)

Another way that loyal customers help drive your business's profits? Loyal customers are most likely to recommend your business to friends, family, and colleagues looking for your products or services. Word of mouth marketing is crucial to driving new customers to your business. Investing in customer experience will lead to a larger base of loyal customers, and thus, a larger base of brand ambassadors spreading positive reviews.

Want to improve your business's customer experience? Start by sending incentivized customer satisfaction surveys. Create a free account with Teakah and start taking steps to retaining more customers.