- Language: English
- Published: July 2012
- Region: World
How to Profit from Customer Dissatisfaction - A White Paper
- Published: January 2005
- Region: World
- 19 Pages
- Verde Group
Despite the widespread adoption of customer satisfaction measurement programs, the typical North American company is at risk of losing 21%of its customers due to dissatisfaction.
Over the last ten years, we’ve conducted more than 100 customer dissatisfaction studies. We survey thousands of customers each year. The statistics tell us that most companies are inadvertently “designed” to aggravate their customers. This white paper presents the aggregate results of the last five years of data detailing the nature of dissatisfaction among customers in North America and suggests an approach for how companies can convert that dissatisfaction into loyalty and profits.
Even under the best scenario, there is no question that you will always lose customers. The key is to figure out how to keep your most valuable customers. Because satisfyingpreviously unsatisfied, valuable customers is significantly more profitable than acquiring new ones.
More facts you should know:
- 60-80% of defecting customers categorize themselves as ‘satisfied’ on surveys conducted immediately before their departure.
- 59% of customers experience at least one problem with a company’s products/services over a 6-12 month period.
- Customers who don’t experience problems are twice as loyal as those who do.
- Only 30% of customers are completely satisfied with the resolution to their problems.
- Over 40% of those who have a problem never tell the company about it.
- 68-73% of customers defect due to service/quality problems that, if known, would be relatively easy to fix. SHOW LESS READ MORE >
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PRE VS. POST CHRISTMAS ANALYSIS
Presents the costs and effects of customer dissatisfaction based on responses from 25,000 individuals in 26 studies conducted from 1999 to 2004. Demonstrates that on average, 21% of a typical North American company’s revenue is at risk based on customer dissatisfaction. Discusses the effects of problem experiences on loyalty and negative word-of-mouth, and compares outcomes for customers who contact a company about their problems vs. those who do not. Argues that customer satisfaction measures do not adequately capture revenue at risk, and provides recommendations for mitigating risk and converting dissatisfaction into profits.
United States and Canada
|Electronic (PDF)||The report will be emailed to you. The report is sent in PDF format.||This is a single user license, allowing one specific user access to the product.|