This is an excerpt from "The Lean CX Score." Get your copy now and start creating disruptors that completely annihilate your competition. Oh and good news! You'll be improving the speed, morale and engagement of your teams at the same time. Get the Lean CX Score now.
Good Customer Experience is Worth More Than 140%
If getting more approval from your customers isn’t enough, a study in the Harvard Business Review also found that customers who had the best customer experiences spent up to 140% more than those who received a poor customer experience *8. This means that Customer Experience has a significant effect on your profit as a company, and your success as a team.
The same Harvard research found that customers who gave the poorest ratings for customer service had a much lower chance of staying as customers in the following year. Fewer than half of customers who rated a company poorly stayed with that company, and overall they only stayed for a year on average *9.
On the other hand, customers who rated their experience the highest were way more likely to remain as customers the following year (31% more, to be exact), and on average had a likelihood of staying for six years *10.
A customer staying for one year, or six years. Which would you prefer?
It’s not just about customers staying with you a long time. Keeping customers can also significantly improve your bottom line and profit. Research done by Frederick Reichheld (the inventor of the Net Promoter Score) found that increasing customer retention by just five percent, increased profit to the company by over 25% *11.
Isn’t that amazing? Keep an extra five percent of your customers instead of letting them leave, and your profit could go up by 25%. Most companies would be ecstatic with a 25% jump in profit. Why was there such a difference?
Well, existing customers of a company tend to spend more over time. The trust is already there – there is less of a need for the “hard sell”. And the cost to acquire them as a customer has already been spent, a figure that for brand new customers can be quite large when adding up the cost of marketing, advertising, sales teams, service teams and more to get them on board.
Keeping your customers is even more powerful than you think, and good Customer Experience is the key that unlocks that power for you.
More chapters from The Lean CX Score book:
- Lean CX Score – What is Lean CX Anyway?
- Introducing The Lean CX Score by David McLachlan
- Lean CX Score – Lean CX Shows You How To Create A Disruptor
- Lean CX Score – Someone Can Always Make A Better Burger
- Lean CX Score – They’re All Moments Of Truth
- Lean CX Score – Using The Waste Basket
- Lean CX Score – Good Customer Experience Engages Your Team By More Than 25%
- Lean CX Score – 80% of CEOs Believe They Provide Superior Service: Just 8% of Customers Agree
- Lean CX Score – Good Customer Experience Is Worth More Than 140%
- Lean CX Score – A New Way To Tell If What You’re Doing Works
- The Lean CX Score Story – The Wise Man And The Emperor
This is an excerpt from "The Lean CX Score." Get your copy now and start creating disruptors that completely annihilate your competition. Oh and good news! You'll be improving the speed, morale and engagement of your teams at the same time. Get the Lean CX Score now.