THE COST OF Unhappy Customers We are living in the age of the empowered customer -- a time when a single Facebook post or tweet can dramatically impact a company. While positive customer experiences broadcasted online can reach more people than a Super Bowl ad, negative customer experiences spread even faster and more broadly, with possibly devastating effects on your business. The reality is that unhappy customers are costly -- but they don’t have to be if your company takes the right approach. Engage with your empowered customers through continuous, long-term collaboration and unlock their potential as valuable assets to your company! Customers are 3X more likely to tell their friends about a negative experience. It takes 12 positive experiences to make up for one unresolved negative experience. 80% Of people will not buy from a business that has negative reviews. It takes 10 to 12 positive reviews to offset one negative review. According to Google, businesses with reviews of 3 or more stars get 87% of the clicks! Seattle restaurants reported 5-9% revenue GAINS following one-star increases on Yelp. 1.3 TRILLION = the amount up for grabs in the U.S. consumer market 51% = customers who switched businesses due to poor experiences 81% = customers who switched say the company could have prevented it 1.3 TRILLION * 51% * 81% $537,030,000,000 = the annual cost of unhappy customers Musician David Caroll witnessed as United Airlines employees tossed his guitar on the tarmac during the unloading process. The guitar, worth $3500, broke at the neck. Dave asked United Airlines to pay for repairs, but it refused. After 9 months of pleas and refusals, Dave wrote a song and produced a music video on YouTube. The song, “United Breaks Guitars,” has nearly 14 million views to date. The result? Within 4 weeks of the video’s release, United’s stock fell 10%, a value of $180 million! AN UNHAPPY CUSTOMER IGNITES POLICY CHANGE (ANOTHER TRUE STORY) When Bank of America announced it would begin charging a $5 monthly debit fee, Molly Katchpole started an online petition. More than 300,000 people signed Molly’s petition. As a result, Bank of America apologized and removed the fee! Hotel and wireless businesses that improve their customer experience scores by 10% exceed $1 Billion in aggregate revenue. Customers whose issues are resolved by businesses tell 4-6 people about their positive experience. Focus on a great customer experience across all company departments. Dig into your customer demographics, know their specific preferences, and deliver on those preferences. Engage regularly with your customers through two-way dialogue. Involve customers in various stages of your business -- research, prototyping, testing, pricing -- and establish longer-term interactions through customer insight communities. Provide consistently excellent service and support through your customers’ preferred channels. Read the Customer Revolution Manifesto to learn how the empowered customer can be an asset for your business. www.visioncritical.com/manifesto THE MATH BEHIND UNHAPPY CUSTOMERS THE MATH BEHIND UNHAPPY CUSTOMERS Unhappy customers are big losses for some companies and big opportunities for others. CUSTOMER HAPPINESS IS A GOLDEN OPPORTUNITY CUSTOMER HAPPINESS IS A GOLDEN OPPORTUNITY Happy customers boost your company’s bottom line. THE FORMULA FOR CUSTOMER HAPPINESS THE FORMULA FOR CUSTOMER HAPPINESS Three Guiding Principles For Your Business. Remember: It costs 6-7 times more to acquire a new customer than to retain an existing one. “Totally Satisfied” customers contribute 14 times more revenue than “Somewhat Dissatisfied” customers “Totally Satisfied” customers contribute 2.6 times more revenue than “Somewhat Satisfied” customers. HOW ONE UNHAPPY CUSTOMER COST A COMPANY $180 MILLION The True Story of a Man, a Guitar, and an Airline Mobile and social platforms make it easy for customers to share their experiences to wide audiences. Sources: https://www.linkedin.com/today/post/article/20130604134550-284615-15-statistics-that-should-change-the-business-world-but-haven-t_ http://www.businessweek.com/articles/2013-10-22/angry-customers-cost-companies-5-dot-9-trillion http://www.thewebsmithgroup.com/you-just-lost-a-customer/ http://www.oracle.com/us/corporate/analystreports/forrester-future-customer-service-1603792.pdf http://blogs.aberdeen.com/contact-center-customer-experience-management/day-in-the-life-of-an-empowered-customer-leveling-the-playi ng-field/#sthash.cy774Lt2.dpf http://sentium.com/a-public-relations-disaster-how-saving-1200-cost-united-airlines-10772839-negative-views-on-youtube/ http://mediamiser.com/wp-content/uploads/2013/03/United_Breaks_Guitars_Report.pdf http://sentium.com/a-public-relations-disaster-how-saving-1200-cost-united-airlines-10772839-negative-views-on-youtube/ http://usatoday30.usatoday.com/money/industries/banking/story/2011-11-03/part-time-nanny-bank-of-america-fee/51065064/1 http://www.slideshare.net/forrester/the-businessimpactofcx AN UNHAPPY CUSTOMER IS AN INFLUENTIAL ONE AN UNHAPPY CUSTOMER IS AN INFLUENTIAL ONE 90% of companies say customer experience is a top strategic priority, yet only 3% manage to deliver an excellent customer experience. Only 27% of companies know the makeup of its customers' households, and only 29% know when its customers are most likely to purchase. 59% of customers would be willing to try a new brand to get better customer service. DO YOU KNOW THE COST OF UNHAPPY CUSTOMERS TO YOUR COMPANY? The opportunity cost of satisfied customers
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THE COST OFUnhappy Customers
We are living in the age of the empowered customer -- a time when a single Facebook post or tweet can dramatically impact a company. While positive customer experiences broadcasted online can reach more people than a Super Bowl ad, negative customer experiences spread even faster and more broadly, with possibly devastating effects on your business. The reality is that unhappy customers are costly -- but they don’t have to be if your company takes the right approach. Engage with your empowered customers through continuous, long-term collaboration and unlock their potential as valuable assets to your company!
Customers are 3X more likely to tell their friends about a negative experience.
It takes 12 positive experiences to make up for one unresolved negative experience.
80% Of people will not buy from a business that has negative reviews. It takes 10 to 12 positive reviews to offset one negative review.
According to Google, businesses with reviews of 3 or more stars get 87% of the clicks!
Seattle restaurants reported 5-9% revenue GAINSfollowing one-star increases on Yelp.
1.3 TRILLION = the amount up for grabs in the U.S. consumer market51% = customers who switched businesses due to poor experiences
81% = customers who switched say the company could have prevented it
1.3 TRILLION * 51% * 81%
$537,030,000,000 = the annual cost of unhappy customers
Musician David Caroll witnessed as United Airlines employees tossed his guitar on the tarmac during the unloading process. The guitar, worth $3500, broke at the neck. Dave asked United Airlines to pay for repairs, but it refused.
After 9 months of pleas and refusals, Dave wrote a song and produced a music video on YouTube. The song, “United Breaks Guitars,” has nearly 14 million views to date.
The result?
Within 4 weeks of the video’s release, United’s stock fell 10%, a value of $180 million!
AN UNHAPPY CUSTOMER IGNITES POLICY CHANGE (ANOTHER TRUE STORY)
When Bank of America announced it would begin charging a $5 monthly debit fee, Molly Katchpole started an online petition.
More than 300,000 people signed Molly’s petition. As a result, Bank of America apologized and removed the fee!
Hotel and wireless businesses that improve their customer experience scores by 10% exceed $1 Billion in aggregate revenue.
Customers whose issues are resolved by businesses tell 4-6 people about their positive experience.
Focus on a great customer experience across all company departments. Dig into your customer demographics, know their specific preferences, and deliver on those preferences.
Engage regularly with your customers through two-way dialogue. Involvecustomers in various stages of your business -- research, prototyping, testing, pricing -- and establish longer-term interactions through customer insight communities.
Provide consistently excellent service and support through your customers’ preferred channels.
Read the Customer Revolution Manifesto to learn how the empowered customer can be an asset for your business.
www.visioncritical.com/manifesto
THE MATH BEHIND UNHAPPY CUSTOMERS
THE MATH BEHIND UNHAPPY CUSTOMERS
Unhappy customers are big losses for some companies and big opportunities for others.
CUSTOMER HAPPINESS IS A GOLDEN OPPORTUNITYCUSTOMER HAPPINESS IS A GOLDEN OPPORTUNITY
Happy customers boost your company’s bottom line.
THE FORMULA FOR CUSTOMER HAPPINESSTHE FORMULA FOR CUSTOMER HAPPINESS
Three Guiding Principles For Your Business.
Remember: It costs 6-7 times more to acquire a new customer than to retain an existing one.
“Totally Satisfied” customers contribute 14 times more revenue than “Somewhat Dissatisfied” customers
“Totally Satisfied” customers contribute 2.6 times more revenue than “Somewhat Satisfied” customers.
HOW ONE UNHAPPY CUSTOMER COST A COMPANY $180 MILLIONThe True Story of a Man, a Guitar, and an Airline
Mobile and social platforms make it easy for customers to share their experiences to wide audiences.
Sources:https://www.linkedin.com/today/post/article/20130604134550-284615-15-statistics-that-should-change-the-business-world-but-haven-t_http://www.businessweek.com/articles/2013-10-22/angry-customers-cost-companies-5-dot-9-trillionhttp://www.thewebsmithgroup.com/you-just-lost-a-customer/http://www.oracle.com/us/corporate/analystreports/forrester-future-customer-service-1603792.pdfhttp://blogs.aberdeen.com/contact-center-customer-experience-management/day-in-the-life-of-an-empowered-customer-leveling-the-playing-field/#sthash.cy774Lt2.dpfhttp://sentium.com/a-public-relations-disaster-how-saving-1200-cost-united-airlines-10772839-negative-views-on-youtube/http://mediamiser.com/wp-content/uploads/2013/03/United_Breaks_Guitars_Report.pdfhttp://sentium.com/a-public-relations-disaster-how-saving-1200-cost-united-airlines-10772839-negative-views-on-youtube/http://usatoday30.usatoday.com/money/industries/banking/story/2011-11-03/part-time-nanny-bank-of-america-fee/51065064/1http://www.slideshare.net/forrester/the-businessimpactofcx
AN UNHAPPY CUSTOMER IS AN INFLUENTIAL ONEAN UNHAPPY CUSTOMER IS AN INFLUENTIAL ONE
90% of companies say customer experience is a top strategic priority, yet only 3% manage to deliver an excellent customer experience.
Only 27% of companies know the makeup of its customers' households, and only 29% know when its customers are most likely to purchase.
59% of customers would be willing to try a new brand to get better customer service.
DO YOU KNOW THE COST OF UNHAPPY CUSTOMERS TO YOUR COMPANY?
The opportunity cost of satisfied customers
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