By Mike Stiles on Nov 26, 2013
Consider the value of a thankful customer. A customer experience that goes beyond selling people what they need is the key to turning a mere “satisfied” customer into a thankful customer, which is quite a different thing.
Satisfied customers get what they expect, for the price they expect, and in the way they expect. Or…they had a negative experience but not so negative they took a tangible action against you. They’re quiet. You can get by with satisfied customers, provided your competition isn’t doing a better job than you are.
Thankful customers feel they’ve found something special. The product is better than expected. The service is more timely, attentive, and helpful than expected. The way the company seems to know who they are is unexpected. Thankful customers are not quiet. They’ve been given a good story to tell their friends…so they do. Having thankful customers positions you to devastate competitors.
Making customers thankful takes effort, commitment, and an unrelenting obsession with the customer experience. That should be easy to do considering good customer experiences = money.
- A Dimensional Research survey found 62% of B2B and 42% of B2C customers bought more after a good experience, while 66% and 52% respectively stopped buying after a bad one.
- 95% of respondents who had a bad experience told someone about it. 54% shared it over 5 times.
- The buying decision was impacted for 86% of people who read negative reviews.
- Zendesk tells us 24% of people keep seeking out the same vendor for 2 years after a good experience, while 39% will avoid a vendor for at least 2 years after a bad one.
- ClickSoftware says 60% of customers are actually willing to pay more if it will get them a better experience.
- It takes 12 positive experiences to make up for 1 negative one.
- For every customer service complaint, 26 other customers are quietly unhappy.
- Acquiring a new customer costs about 5-9x more than selling to an existing one, and existing customers spend 67% more than new ones.
Whew. Clearly, taking customers for granted, hiding from them, or dismissing their feelings literally costs money. Whereas happy, thankful customers make you money, save you money, and actually market for you. So obviously, brands are out there right now obsessing over customer experience since it would be so completely absurd not to, right? Think again.
In 2012, 75% told Forrester their goal was to “differentiate on the basis of customer experience.” Yet most scored an “OK” or “very poor” on Forrester’s customer experience index. In fact, it’s been getting worse. The tiny percentage ranking “excellent” started going down in 2007 and is now at an all-time low.
eConsultancy and CACI found only 20% of companies have a well-developed strategy for integrated customer service. As for social, 81% of execs know active social processes and culture are essential, but only 65% offer social for sales and service.
Are brands so fiercely opposed to creating positive customer experiences and putting customer happiness over what’s convenient, cheap or easy for the company that they’d rather go under first? Hardly.
Awesome experiences that create loyal, thankful customers arise out of technical and organizational processes. Intimate knowledge of the customer requires listening and data. It requires holistic integration so data can inform across every CRM and CX component. It requires analytics that fuel perpetual improvement so each experience is better than the last. It requires consistency across channels. It requires new internal partnerships and collaboration. And it requires flexibility to adapt and better cope with disruption (which isn’t going to stop). These things are far from easy.
But that vision is available and growing bigger and better every day. Now the desire to create bountiful, surprising customer experiences must grow strong enough that brands feel absolutely compelled to execute on that vision.
Photo: Chris Dickson, stock.xchng