Service and marketing facts you cannot ignore

This article provides you with hardcore facts, that any contact center manager, marketing manager, call center manager and CEO cannot ignore.

Whenever you attend marketing, management or customer service conferences, or speak to management consultants, for that matter, you are bound to hear whole bunch of quotes and “buzz-sentences” again and again.

For your benefit, TeleFaction brings you selected facts that are important for most businesses and organizations. This page will be complemented/updated successively, and from 2007 you can expect to find links to TeleFactions own findings from real-life customer projects.

Facts about customer experiences and referrals

A good customer experience is told to 8 other people
A bad customer experience is told to 22 other people
It takes 10 good experiences to make up for one bad one
70% buying experiences are based on how the customer feels they are being treated

Facts about customer retention and churn facts

An average company loses between 10 and 30% of its customers each year
A 5% reduction in the customer defection rate can increase profits by 25% to 80%
Satisfying and retaining current customers is 3 to 10 times cheaper than acquiring new customers
A North American study by McKinsey estimates that successful efforts to cross-sell during inbound service calls could boost a retail bank’s sales of new products by 10%, based on a study of North American banks.

Facts about customer service and contact centers/call centers

Executives know that upgrades in contact center technologies will not help unless companies also change the way their people work
A good customer service strategy should balance costs, quality, and revenues. Companies that restructure call centers in this way can often cut their costs by up to 25% and boost the revenue they generate by as much as 35%, thereby transforming them into strategic assets providing a competitive advantage. (McKinsey)

Do not miss the October issue of Return on Behavior Magazine from TeleFaction for more facts you cannot ignore.

About the Author

TeleFaction A/S

TeleFaction is an international privately owned, Danish company founded in 2002. We deliver Return on Behavior®, a patented concept that helps large organizations drive growth and increase profitability through improved customer loyalty. Our clients believe that the process of becoming customer-centered starts from acknowledging that their performance for service can always get better.

Our team of experts within Customer Experience Management produce surveys, gather and analyze data on your customers’ level of satisfaction at all contact points. These measurements are used to understand the clients´ needs in order for you to create positive customer service that guarantees retention. As a result, you also increase employee engagement, sales efficiency and improve your product and services.

This is because, at TeleFaction, we know that the bottom line of any effective customer service strategy is the maintenance of a constant corporate message that managers, employees, and customers understand and trust.

Customer Experience