A survey commissioned illustrates that the incidence of customers switching from one brand to a competitor is weighted heavily towards service rather than product quality issues.

Whilst customers may feel that there is no better alternative to the XXXXXXX product, the power of service quality in tempering customer loyalty may tempt customers to switch to key target competitors if perceived levels of service from their dealer networks are better.

Customer perceptions of alternatives are almost as important as the reality, since perceptions will form the basis of a customer’s decision to change.

The repurchase cycle for motor vehicles is such that competitors have a considerable period of time in which to make their actual level of service live up to the customer’s initial expectations.

Customers who complain and get their problems successfully resolved are 2½ to 3 times as loyal as customers who have never experienced a problem.

Why Loyal Customers Are More Profitable

The chart opposite, commissioned by management consultants Bain and Co, reinforces the importance of customer retention through high levels of satisfaction.

The profit from reduced operating costs correlates with high satisfaction because it indicates that the company is “getting it right first time every time”. This in turn leads to increased profit from referrals and enables the company to protect its premium pricing revenue.

The cost of gaining a new customer is five times higher than that of retaining an existing customer

Via
Roger Frosh

Kevin Stirtz
AmazingServiceGuy.com

Good list – I’m going through it one site at a time!

Maybe you’d like to take a look at this one? Just getting started but would love your thoughts!

http://customerservicethoughts.blogspot.com/

Kevin Stirtz