October 12, 2012

Think it’s hard to ask customers how you’re doing? Try losing them if you don’t.

“The level of satisfaction a customer has with a company has profound effects. Studies have found that the level of customer’s satisfaction has a positive effect on profitability:

A totally satisfied customer contributes 2.6 times as much revenue to a company as a somewhat satisfied customer.
A totally satisfied customer contributes 17 times as much revenue as a somewhat dissatisfied customer.
A totally dissatisfied customer decreases revenue at a rate equal to 18 times what a totally satisfied customer contributes to a company.
Research has shown that when a person is satisfied with a company or service they are likely to share their experience with other people to the order of perhaps five or six people. However, dissatisfied customers are likely to tell another ten people of their unfortunate experience. With social media readily available for consumers to tell their story to all of those online, you can easily go to Twitter or Facebook and read about someone’s experience with a company or service.”