15 customer experience statistics that every business owner should know

Everybody knows the importance of customer service.  And we all know that there are some days when we are so busy trying to get a million things done that dealing with customer complaints and resolving issues can make the best of us grit our teeth.

I was inspired to write this article as I recently made an online order (as a first time customer from this store) and after a week of silence – and no parcel – I emailed the company to request an ETA.

Two days later I received an email saying they would check with the warehouse.  Then nothing for 5 days until I finally got a tracking number emailed from a courier company.

The parcel arrived 2 days later and I now have my goods almost 3 weeks later but it left me a little unsure if I would purchase from them again if I needed something in a hurry.

I am not the type of person who would give them a bad review based on one experience only but it made me wonder how often this happens and how many customers have this experience.

In today’s highly competitive on-and off line commerce world, saturated in social media,  customer service can make or break a business.

A good customer review online or post could lead to exponential growth in business.

And a tweet or post by a customer who had a bad experience with a company can just as quickly lead to a damaged reputation and a huge loss in business.




Here are 15 statistics that every business owner and front line employee that are good reminders for us all:

  1. Price is always not the main reason for customer churn; it is actually due to the overall poor quality of customer service – Accenture global customer satisfaction report 2008.
  2. A customer is 4 times more likely to go to a competitor if the problem is service related than price or product related – Bain & Company.
  3. The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% – Marketing Metrics.
  4. For every customer complaint there are 26 other unhappy customers who have remained silent –Lee Resource.
  5. A 2% increase in customer retention has the same effect as decreasing costs by 10% – Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy.
  6. 96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back – 1st Financial Training services.
  7. A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people. – White House Office of Consumer Affairs.
  8. Happy customers who get their issue resolved tell about 4-6 people about their experience. – White House Office of Consumer Affair.
  9. 70% of buying experiences are based on how the customer feels they are being treated – McKinsey.
  10. 55% of customers would pay extra to guarantee a better service – Defaqto research.
  11. Customers who rate you 5 on a scale from 1 to 5 are six times more likely to buy from you again, compared to ‘only’ giving you a score of 4.8. – TeleFaction data research.
  12. It takes 12 positive experiences to make up for one unresolved negative experience – “Understanding Customers” by Ruby Newell-Legner.
  13. A 5% reduction in the customer defection rate can increase profits by 5 – 95% – Bain & Company.
  14. It costs 6 – 7 times more to acquire a new customer than retain an existing one – Bain & Company.
  15. eCommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers – McKinsey.

According to a Walker study, by the year 2020 customer experience will overtake price and product as the key brand differentiator.  With so many compelling reasons to make customer service one of the most important areas of a business, it is surprising that there are still so many companies that fall short on the service end of their offering.

Warren Buffet quote
Do you need to improve your customer service?

Maybe you have customers calling and emailing looking for their orders and it takes a while to gather the information they want?

Automating your shipping service and streamlining your customers’ experience with customer alerts and notifications to update them on the order’s status can be a massive time saver for retailers.

Take a look at our branded tracking pages and automated notifications.  If you’re not using these yet, find out how StarShipIT can help you improve customer service levels and spend less time doing it!

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