What’s the REAL Value of Customer Satisfaction?

what is the value of customer satisfaction

This should come as no surprise to you, but it’s worth keeping in mind: when your customers are unhappy with the service you’re providing, that lack of satisfaction will lead them – and possibly their friends and fellow customers — to your competitors. You know customer satisfaction is important, though, so why read any further? You’ve got this, right? Right?

Just because you know something is important doesn’t mean you know exactly WHY it’s important. Not having the right information could seriously put a financial drain on your company. There are so many different aspects of customer engagement, providing a great customer experience — which leads to a high-level of customer satisfaction — might not be as easy as you might think.

Poor Customer Satisfaction Leads to Fewer Customers

Believe it or not, customers like being treated like they matter. If their customer experience involves multiple instances of terrible service, there’s no incentive in the world you could offer to keep them as customers.

what is the value of customer satisfaction

In fact, 44 percent of customers take their business to the competition due to a poor customer experience.1 That’s almost half of your customers. Think about the last time you personally had a bad customer experience. Did you think that company had your best interests in mind? Did you want to give that company more of your business? You don’t have to answer out loud. You already know the answer.

Let’s say, though, you know your company can always get new customers and start over — a completely fresh approach with customer satisfaction in mind. While that’s a nice thought, it’s going to cost you.

The Cost of New Customers

It’s not easy getting customers to begin with, something you surely already know. What you might not know is that it’s also more expensive. How expensive? Landing new customers costs anywhere between five and 25 times more than retaining existing customers. 2

It’s not hard to see why that would be the case. Your company has to spend on advertising and promotions, discounts to get new customers in the door, etc. Those all cut deep in your bottom line. Once you get those new customers, it might be a few years before you actually see any sort of a return on your investment.

Landing new customers costs anywhere between five and 25 times more than retaining existing customers. Click To Tweet

Meanwhile, your former customers walked right in the door of your competition of their own free will because of the poor customer service they received from your company. Ok, you think, we’d lose a little, but we’d be able to make it up quickly. It couldn’t possibly be that much money, right?

The High Cost of Churn

In the U.S., companies have lost $1.6 trillion as a result of customers switching due to poor customer service.3 That’s not a mistake — $1.6 trillion.

So, while you’re spending money trying to bring in new customers, you’re losing money thanks to your customers jumping ship. Basically, your company is losing money coming and going. Do you know what the churn rate is for your company? Is it something you think your company might need to address?

Your company doesn’t have to go through any of this, just so you know. Just like Scrooge waking up on Christmas Day, it’s not too late.

Happy Customers, Happy Company

Your customers want to be able to use your goods or services and, if there’s an issue, talk to you in order to fix the problem. That’s it. There’s no big secret to great customer satisfaction. There are lots of ways to go about this. For example, 75 percent of customers want a consistent experience regardless of how they engage with you, e.g. social media, in person, by phone, etc.4

Whether your company uses omnichannel engagement to satisfy that example, or any number of other solutions, having proven customer communications management software helping you can make all the difference. This is our bread and butter.

Here at Ecrion, we pride ourselves on helping companies, just like yours, set up the right CCM software. With Ecrion in your corner, managing the overall customer experience is much easier.

Contact us today to see just how we go about helping companies. Email us at sales@ecrion.com, or fill out our contact form. We look forward to helping you on the path to better customer communications.