5Customer Facts,Quotes & Statistics
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1 An ebook by 5Customer Service Facts,Quotes & Statistics How Your Business Can Deliver With the Best of the Best 1
2 TA B L E O F C O N T E N T S 1. The Cost of Bad Customer Service What Customers Think Power in a Personal Touch The Social Graph Online Retail Customer Service The Best of the Best Great Quotes Delivering Memorable Online Service
3 1THE COST OF BAD Customer SERVICE 3
4 BY THE NUMBERS 78% of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience. Source: American Express Survey, 2011 CHAPTER 1: THE COST OF BAD CUSTOMER SERVICE 4 HelpScout.net
5 DID YOU KNOW? A typical business hears from 4% of its dissatisfied customers. DISSATISFIED CUSTOMERS 4% CUSTOMERS WHO DON T VOICE COMPLAINTS 96% CUSTOMERS WHO WILL NEVER COME BACK 91% Source: Understanding Customers by Ruby Newell-Legner CHAPTER 1: THE COST OF BAD CUSTOMER SERVICE 5 HelpScout.net
6 FACT On average, loyal customers are worth up to10 times as much as their first purchase. Source: White House Office of Consumer Affairs CHAPTER 1: THE COST OF BAD CUSTOMER SERVICE 6 HelpScout.net
7 BY THE NUMBERS 5-20% Probability of selling to a new prospect 60-70% Probability of selling to an existing customer Source: Marketing Metrics CHAPTER 1: THE COST OF BAD CUSTOMER SERVICE 7 HelpScout.net
8 DID YOU KNOW? It takes 12 positive experiences to make up for one unresolved negative experience. = Source: Understanding Customers by Ruby Newell-Legner CHAPTER 1: THE COST OF BAD CUSTOMER SERVICE 8 HelpScout.net
9 FACT News of bad customer service reaches more than twice as many ears as praise for a good service experience. The Takeaway Take the time to address unhappy customers and do everything in your power to remedy the situation. It s not only worth keeping their business, but also avoiding any negative word of mouth exposure. Source: White House Office of Consumer Affairs CHAPTER 1: THE COST OF BAD CUSTOMER SERVICE 9 HelpScout.net
10 DID YOU KNOW? It is 6-7 times more expensive to acquire a new customer than it is to keep a current one. Source: White House Office of Consumer Affairs CHAPTER 1: THE COST OF BAD CUSTOMER SERVICE 10 HelpScout.net
11 FACT For every customer who bothers to complain, 26 other customers remain silent. The Takeaway Customer feedback is gold! Come up with internal processes to track complaints and go about fixing them. Also, do everything in your power to make it really easy for customers to give feedback and tell you about problems they are having. It takes time to sift through feedback, but the value added to your business is worth it! Source: White House Office of Consumer Affairs CHAPTER 1: THE COST OF BAD CUSTOMER SERVICE 11 HelpScout.net
12 THE BRIGHT SIDE 3 in 5 Americans (59%) would try a new brand or company for a better service experience. Source: American Express Survey, 2011 CHAPTER 1: THE COST OF BAD CUSTOMER SERVICE 12 HelpScout.net
13 THE BOTTOM LINE Any business with customers is in the people business. Losing even a single customer can be very costly. It s critical for companies to turn a complaint into a positive for the customer and for the company moving forward. CHAPTER 1: THE COST OF BAD CUSTOMER SERVICE 13 HelpScout.net
14 2WHAT CUSTOMERS THINK 14
15 FACT In 2011, 7 in 10 Americans said they were willing to spend more with companies they believe provide excellent customer service < 6 Source: American Express Survey, 2011 CHAPTER 2: WHAT CUSTOMERS THINK 15 HelpScout.net
16 QUOTE When customers share their story, they re not just sharing pain points. They re actually teaching you how to make your product, service, and business better. Your customer service organization should be designed to efficiently communicate those issues. Kristin Smaby, Being Human is Good Business CHAPTER 2: WHAT CUSTOMERS THINK 16 HelpScout.net
17 BY THE NUMBERS According to consumers, customer service agents failed to answer their questions 50% of the time. Was this answer helpful? YES NO Source: Harris Interactive CHAPTER 2: WHAT CUSTOMERS THINK 17 HelpScout.net
18 THE BRIGHT SIDE 80% of Americans agree that smaller companies place a greater emphasis on customer service than large businesses. The Takeaway Small companies can differentiate themselves from large competition and win over new customers with great service. Source: American Express Survey, 2011 CHAPTER 2: WHAT CUSTOMERS THINK 18 HelpScout.net
19 DID YOU KNOW? In the last year, 67% of customers have hung up the phone out of frustration they could not talk to a real person. The Takeaway Eliminate unnecessary barriers between you and your customers. They will happily do business with you if they feel valued. Source: Consumer Reports Survey, 2011 CHAPTER 2: WHAT CUSTOMERS THINK 19 HelpScout.net
20 FACT What goes into a happy customer experience? Customers who say COMPETENT SERVICE REPS 78% Customers who say PERSONALIZATION 38% Source: The Cost of Poor Customer Service by Genesys Global Survey, 2009 CHAPTER 2: WHAT CUSTOMERS THINK 20 HelpScout.net
21 THE DATA POINT 75% of customers believe it takes too long to reach a live agent. The Takeaway If you offer some sort of live service (phone or live chat), it s paramount that you get customers to a live person in 2 minutes or less. Otherwise it creates frustration that can lead to a seriously unhappy customer. Source: Harris Interactive CHAPTER 2: WHAT CUSTOMERS THINK 21 HelpScout.net
22 QUOTE Although your customers won t love you if you give bad service, your competitors will. Kate Zabriskie CHAPTER 2: WHAT CUSTOMERS THINK 22 HelpScout.net
23 BY THE NUMBERS 70% of buying experiences are based on how the customer feels they are being treated. Source: McKinsey CHAPTER 2: WHAT CUSTOMERS THINK 23 HelpScout.net
24 BY THE NUMBERS 80% of companies say they deliver superior customer service. 8% of people think these same companies deliver superior customer service. The Takeaway Decide what metrics are critical to measuring customer satisfaction. Don t just go with your gut; prove that you provide great service with data. Also, don t hesitate to survey customers for feedback and measure success that way. Source: Customer Service Hell by Brad Tuttle, Time, 2011 CHAPTER 2: WHAT CUSTOMERS THINK 24 HelpScout.net
25 FACT 91% of unhappy customers will not willingly do business with you again. THE BRIGHT SIDE Resolve a complaint in the customer s favor and they will do business with you again 70% of the time. Source: Lee Resources CHAPTER 2: WHAT CUSTOMERS THINK 25 HelpScout.net
26 THE BOTTOM LINE Customers overwhelmingly show appreciation for great service with their wallets. Your company should invest heavily in measuring customer satisfaction over time and work to consistently give better service. CHAPTER 2: WHAT CUSTOMERS THINK 26 HelpScout.net
27 3POWER IN A PERSONAL TOUCH 27
28 QUOTE Stellar service should be non-negotiable and merchants shouldn't hide behind self-service tools and technology when it comes to knowing their products and taking care of their customers. Lauren Freedman, President of The E-Tailing Group CHAPTER 3: POWER IN A PERSONAL TOUCH 28 HelpScout.net
29 THE DATA POINT Almost 9 out of 10 U.S. consumers say they would pay more to ensure a superior customer experience. The Takeaway Competing on price isn t the most effective way to build an enduring business. Great service, delivered time and time again, is defensible against the stiffest and most well-funded competition. Source: Customer Experience Impact Report by Harris Interactive/RightNow, 2010 CHAPTER 3: POWER IN A PERSONAL TOUCH 29 HelpScout.net
30 QUOTE People want this level of engagement from the companies with which they do business even the best of what formerly passed for good customer service is no longer enough. You have to be no less than a customer concierge, doing everything you can to make every one of your customers feel acknowledged, appreciated, and heard. You have to make them feel special, just like when your great-grandmother walked into Butcher Bob s shop or bought her new hat, and you need to make people who aren t your customers wish they were. Social media gives businesses the tools to do that for the first time in a scalable way. Gary Vaynerchuk, The Thank You Economy CHAPTER 3: POWER IN A PERSONAL TOUCH 30 HelpScout.net
31 DID YOU KNOW? By far, the MOST requested improvement from customers was Better Human Service. BETTER HUMAN SERVICE 40% INTEGRATE MORE CHANNELS 20% ENRICHED CONTENT WEB ASSITANTS OR AVATARS 15% 15% OTHER SUPPORT SOCIAL COMMUNITIES 7% 5% Source: The Cost of Poor Customer Service by Genesys Global Survey, 2009 CHAPTER 3: POWER IN A PERSONAL TOUCH 31 HelpScout.net
32 BY THE NUMBERS In 2011, 86% of consumers quit doing business with a company because of a bad customer experience % % Source: Customer Experience Impact Report by Harris Interactive/RightNow, 2010 CHAPTER 3: POWER IN A PERSONAL TOUCH 32 HelpScout.net
33 QUOTE While automation can be expedient, the resulting impersonal tone and risk of poor information are formidable most importantly, merchants are missing an opportune moment to connect with current and prospective customers. Annual Mystery Shopping Study by The E-tailing Group, 2010 CHAPTER 3: POWER IN A PERSONAL TOUCH 33 HelpScout.net
34 DID YOU KNOW? Most cringe-worthy phrases customers don t want to hear: We re unable to answer your question. Please call xxx-xxx-xxxx to speak to a representative from xxx team. We re sorry, but we re experiencing unusually heavy call volumes. You can hold or try back at another time. Your call is important to us. Please continue to hold. Source: American Express Survey, 2011 CHAPTER 3: POWER IN A PERSONAL TOUCH 34 HelpScout.net
35 QUOTE If anybody ever called our number, it would be picked up in less than 2 rings with a friendly voice answering, CD Baby. From 7 am to 10 pm, there was always somebody to pick up a call in 2 rings. No voice mail system; no routing to different departments. We treated our customers like our best friends. You don t route your best friend s call to an automated system! Derek Sivers, CD Baby CHAPTER 3: POWER IN A PERSONAL TOUCH 35 HelpScout.net
36 FACT Sarah Employees only ask for the customer s name 21% of the time. HINT: The person has a name 100% of the time, and they like hearing it. Source: ContactPoint Client Research CHAPTER 3: POWER IN A PERSONAL TOUCH 36 HelpScout.net
37 QUOTE In an era when companies see online support as a way to shield themselves from costly interactions with their customers, it s time to consider an entirely different approach: building humancentric customer service through great people and clever technology. So, get to know your customers. Humanize them. Humanize yourself. It s worth it. Kristin Smaby, Being Human is Good Business CHAPTER 3: POWER IN A PERSONAL TOUCH 37 HelpScout.net
38 DID YOU KNOW? TOP TWO REASONS FOR Customer LOSS 1. Customers feel poorly treated. 2. Failure to solve a problem in a timely manner. Source: Customer Experience Impact Report by Harris Interactive/RightNow, 2010 CHAPTER 3: POWER IN A PERSONAL TOUCH 38 HelpScout.net
39 QUOTE Ask your customers to be part of the solution, and don t view them as part of the problem. Alan Weiss CHAPTER 3: POWER IN A PERSONAL TOUCH 39 HelpScout.net
40 THE BOTTOM LINE There s no substitution for knowledgable, human service. You ll be amazed at what happens when you go out of your way to be an available and authentic voice on the other end of the line. CHAPTER 3: POWER IN A PERSONAL TOUCH 40 HelpScout.net
41 4THE SOCIAL GRAPH 41
42 DID YOU KNOW? Customers are 75% more likely to purchase from a brand they follow on Twitter. The Takeaway Engaging with your customers on Twitter is a great investment. Follow and promote them to your own followers when you have the opportunity. Most importantly, be there to listen if something goes wrong. Source: Touch Agency CHAPTER 4: THE SOCIAL GRAPH 42 HelpScout.net
43 QUOTE The rise of the citizen review site is a sobering development. No longer are you on top of the mountain, blasting your marketing message down to the masses through your megaphone. All of a sudden, the masses are conversing with one another. If your service or product isn t any good, they ll out you. David Pogue, Scientific American, 2011 CHAPTER 4: THE SOCIAL GRAPH 43 HelpScout.net
44 BY THE NUMBERS 58% of Americans perform online research about the products and services that they are considering purchasing. Source: Jim Jansen, Pew Research Center s Internet and American Life Project, 2010 CHAPTER 4: THE SOCIAL GRAPH 44 HelpScout.net
45 DID YOU KNOW? Knowing what s being said about your company online allows you to see where you re succeeding and where you need improvement. The Takeaway Unfiltered feedback from customers is a positive even when it s negative. A bad or so-so online review can actually help you because it gives customers certainty that the opinion is unbiased. Source: Gail Goodman, Entrepreneur, 2011 CHAPTER 4: THE SOCIAL GRAPH 45 HelpScout.net
46 QUOTE Friends and colleagues endorsements, discussed in real life or through Twitter and Facebook updates, are more likely to drive sales than even a positive user review posted on a site like Yelp or Amazon (but those matter, too). Jason Mittelstaedt, CMO at RightNow CHAPTER 4: THE SOCIAL GRAPH 46 HelpScout.net
47 THE DATA POINT Americans tell an average of 9 people about good experiences, and tell 16 (nearly two times more) people about poor experiences People 20 People Source: American Express Survey, 2011 CHAPTER 4: THE SOCIAL GRAPH 47 HelpScout.net
48 BY THE NUMBERS 24% of American adults have posted comments or reviews online about the product or services they buy. Source: Jim Jansen, Pew Research Center s Internet and American Life Project, 2010 CHAPTER 4: THE SOCIAL GRAPH 48 HelpScout.net
49 DID YOU KNOW? Over 1 million people view tweets about customer service every week. Roughly 80% of customer service tweets are negative or critical in nature. The Takeaway Monitor your brand s mentions on social media channels so you can respond to customer complaints before they escalate. It s an opportunity to wow them! Source: Touch Agency CHAPTER 4: THE SOCIAL GRAPH 49 HelpScout.net
50 THE BOTTOM LINE The customer service landscape is changing. Customers expect to be able to reach a real person in your company, be it via a website, social media or the phone. Being responsive to those requests is critical! CHAPTER 4: THE SOCIAL GRAPH 50 HelpScout.net
51 5 ONLINE RETAIL 51
52 QUOTE Always keep in mind the old retail adage: Customers remember the service a lot longer than they remember the price. Lauren Freedman, President of The E-Tailing Group CHAPTER 5: ONLINE RETAIL 52 HelpScout.net
53 BY THE NUMBERS 42% of online shoppers said they had contacted a retailer about an online purchase in the last 6 months. The Takeaway A high percentage of buyers on your website will have a question before completing their purchase. The speed, personal touch and accuracy with which you are able to provide an answer will make all the difference in whether they buy and keep buying from you. Source: Jupiter Research/Forrester Research Inc CHAPTER 5: ONLINE RETAIL 53 HelpScout.net
54 QUOTE People now expect the same if not better level of service from online storefronts and service channels as they do from a visit to a retail store or a phone conversation with an agent. Customer Service in North American Small and Medium Businesses by BenchmarkPortal, 2005 CHAPTER 5: ONLINE RETAIL 54 HelpScout.net
55 FACT 94% of all online retailers provide customer service 27% of inquiries are answered incorrectly The Takeaway Knowledge of the product is more important than speed when ing a customer, so do everything in your power to get it right the first time, every time. Source: Zak Stambor, Internet Retailer, 2010 CHAPTER 5: ONLINE RETAIL 55 HelpScout.net
56 BY THE NUMBERS In a 2010 E-tailing Group survey, only 10 of 100 online merchants made the cut for stellar customer service. Source: Annual Mystery Shopping Study by The E-Tailing Group, 2010 CHAPTER 5: ONLINE RETAIL 56 HelpScout.net
57 QUOTE A man without a smiling face must not open a shop. Chinese Proverb CHAPTER 5: ONLINE RETAIL 57 HelpScout.net
58 THE DATA POINT Customer experience quality could result in a swing of $184 million for a large Internet retailer. Source: Forrester Research Inc., 2008 CHAPTER 5: ONLINE RETAIL 58 HelpScout.net
59 THE BOTTOM LINE Great online retailers see service not as a cost, but as a sales opportunity. Service is how they differentiate themselves from competition and earn their customers business over and over again. CHAPTER 5: ONLINE RETAIL 59 HelpScout.net
60 6 CUSTOMER service 60
61 BY THE NUMBERS Measuring Performance: The Top 10 Average Reply Times of the Largest 100 Internet Retailers in the US OfficeDepot.com MusiciansFriend.com Diapers.com DisneyStore.com Abercrombie.com USAutoParts.com Gift.com PCMall.com Kohls.com ColdwaterCreek.com 0:48:00 0:58:40 1:23:48 1:47:40 1:50:45 3:38:00 4:43:00 4:49:48 5:02:00 5:06:10 Avg of Top 100 Retailers 17:00:00 0:00:00 3:36:00 7:12:00 10:48:00 14:24:00 18:00:00 Source: Internet Retailer/STELLAService, 2011 CHAPTER 6: CUSTOMER SERVICE 61 HelpScout.net
62 FACT The quality of your response matters just as much if not more than timeliness. 21% GOOD 51% 13% FAIR POOR UNRELATED NO RESPONSE 1% 14% Source: Customer Service in North American Small and Medium Businesses by BenchmarkPortal, 2005 CHAPTER 6: CUSTOMER SERVICE 62 HelpScout.net
63 FACT BenchmarkPortal analysts, pretending to be prospective buyers, sent s asking for information about high-value products and services through webforms or addresses provided on the company websites. 83% of small and medium-sized businesses responded with inaccurate or incomplete answers. Source: Customer Service in North American Small and Medium Businesses by BenchmarkPortal, 2005 CHAPTER 6: CUSTOMER SERVICE 63 HelpScout.net
64 BY THE NUMBERS 41% of consumers expect an response within six hours. Only 36% of retailers responded that quickly. 36% 21% 18% 14% 7% 4% 6 Hrs 1 Day 2 Days 3 Days 3 Days Never Source: Forrester Research Inc., 2008 CHAPTER 6: CUSTOMER SERVICE 64 HelpScout.net
65 FACT 24 hours or less is widely considered an acceptable response time. HINT: Respond within an hour for a WOW factor with the customer. Source: Customer Service in North American Small and Medium Businesses by BenchmarkPortal, 2005 CHAPTER 6: CUSTOMER SERVICE 65 HelpScout.net
66 QUOTE The handful of companies that respond promptly and accurately to customer s increase trust in their brand, bolster customer satisfaction, and boost sales both online and offline. BenchmarkPortal CHAPTER 6: CUSTOMER SERVICE 66 HelpScout.net
67 THE BOTTOM LINE is a critical medium for online customer service. The only thing more important than response time and personalization is the quality of your response. Go the extra mile to resolve questions in a single . CHAPTER 6: CUSTOMER SERVICE 67 HelpScout.net
68 7THE BEST OF THE BEST 68
69 THE DATA POINT The Top 10 Companies Rated as Giving Excellent Service in 2011 Source: MSN Money/Zogby International Survey CHAPTER 7: THE BEST OF THE BEST 69 HelpScout.net
70 THE DATA POINT The Bottom 10 Companies Rated as Giving Poor Service in 2011 Source: MSN Money/Zogby International Survey CHAPTER 7: THE BEST OF THE BEST 70 HelpScout.net
71 QUOTE Smart businesses should come to realize that the customer service bar is lower and that today, it s easier than ever to differentiate your company from the pack with (crazy as it seems) actual quality customer service. Brad Tuttle, A Few Thoughts on the God-Awful State of Customer Service, Time, 2010 CHAPTER 7: THE BEST OF THE BEST 71 HelpScout.net
72 DID YOU KNOW? Temkin Respondents Top 5 Companies for an excellent customer experience 1. Amazon 2. Kohl s 3. Costco 4. Lowe s 5. Sam s Club Source: Bruce Temkin, Temkin Experience Ratings, 2011 CHAPTER 7: THE BEST OF THE BEST 72 HelpScout.net
73 DID YOU KNOW? Temkin Respondents Top Companies for each rating category FUNCTIONAL ACCESSIBLE EMOTIONAL Costco Amazon Kohl s Costco Amazon Marriot Kohl s Source: Bruce Temkin, Temkin Experience Ratings, 2011 CHAPTER 7: THE BEST OF THE BEST 73 HelpScout.net
74 THE DATA POINT 81% of companies with strong capabilities and competencies for delivering customer experience excellence are outperforming their competition. Source: Peppers & Rogers Group, Customer Experience Maturity Monitor, 2009 CHAPTER 7: THE BEST OF THE BEST 74 HelpScout.net
75 QUOTE Whatever you are, be a good one. Abraham Lincoln CHAPTER 7: THE BEST OF THE BEST 75 HelpScout.net
76 DID YOU KNOW? According to the Temkin Survey, customers believe... RETAILERS deliver the best experience TV SERVICE PROVIDERs & HEALTH PLANS deliver the worst Source: Bruce Temkin, Temkin Experience Ratings, 2011 CHAPTER 7: THE BEST OF THE BEST 76 HelpScout.net
77 QUOTE Customer service shouldn t just be a department, it should be the entire company. Tony Hsieh, CEO of Zappos CHAPTER 7: THE BEST OF THE BEST 77 HelpScout.net
78 THE BOTTOM LINE Companies with great service aren t afraid to charge a premium for it. You can differentiate from competition by WOWing customers, not just trying to compete on price. CHAPTER 7: THE BEST OF THE BEST 78 HelpScout.net
79 8 GREAT Quotes 79
80 QUOTE The single most important thing is to make people happy. If you are making people happy, as a side effect, they will be happy to open up their wallets and pay you. Derek Sivers, CD Baby CHAPTER 8: GREAT QUOTES 80 HelpScout.net
81 QUOTE It s very logical: There is proven ROI in doing whatever you can to turn your customers into advocates for your brand or business. The way to create advocates is to offer superior customer service. Gary Vaynerchuk, The Thank You Economy CHAPTER 8: GREAT QUOTES 81 HelpScout.net
82 QUOTE Getting service right is more than just a nice to do; it s a must do. American consumers are willing to spend more with companies that provide outstanding service ultimately, great service can drive sales and customer loyalty. Jim Bush, Executive VP at American Express CHAPTER 8: GREAT QUOTES 82 HelpScout.net
83 QUOTE Always do more than is required of you. George S. Patton CHAPTER 8: GREAT QUOTES 83 HelpScout.net
84 QUOTE There are many who subscribe to the convention that service is a business cost, but our data demonstrates that superior service is an investment that can help drive business growth. Investing in quality talent, and ensuring they have the skills, training and tools that enable them to empathize and actively listen to customers are central to providing consistently excellent service experiences. Jim Bush, Executive VP at American Express CHAPTER 8: GREAT QUOTES 84 HelpScout.net
85 QUOTE Customer service is the new marketing. Derek Sivers, CD Baby CHAPTER 8: GREAT QUOTES 85 HelpScout.net
86 9DELIVERing MEMORABLE ONLINE service 86
87 You can delight customers, keep your team on the same page and grow your business with Help Scout! Enter 75ebook for a free $20 account credit when you sign up. SIGN UP NOW! CHAPter 9: DELIVERING MEMORABLE ONLINE SERVICE 87 HelpScout.net
88 Did you enjoy this ebook? Share it with your friends: Get more customer service tips from our blog: CHECK IT OUT! CHAPTER 9: DELIVERING MEMORABLE ONLINE SERVICE 88 HelpScout.net
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