While customers know how valuable good customer service is, the executive wing of your company may be a little in the dark. The bottom line of the profit sheets may not tell the whole tale about the great personal service you’ve been providing. Quantifying good customer service would be better. This article showed not only a way to analyze customer service’s impact on the bottom line, but that it had a tremendous effect as well.
In short, the researchers determined that customer experience is a major driver of future revenue for most businesses:
- Customers who had had the best past experiences with a business spent 140 percent more than customers who had had poor past experiences.
- In another view of “subscription-based business”—such as a gym membership—poor experiences reduced the chances of renewal by 43 percent, while positive experiences set the chances of renewal at 74 percent.
- A person with a poor experience would remain subscribed for a little more than a year, while a person with a positive customer experience would stick around for six years.
Providing stellar customer service can cost a lot in the short term and that’s the usual reason upper management may resist. However, the data from this research and others shows that the initial investment is recouped at a phenomenal rate.