In the current economy customer service is more important than ever. Customers simply will not do business with anything less than exceptional services do to the wide array of choices they have to pick from.
Bad customer service can lead to that person relating their individual story to their friends or even worse posting their bad experience on the Internet in a group forum that has frequent traffic. This can lead to a heavy decline in sales and maybe even eventually going out of business.
On the other hand, if you deliver quality, timely and superior service this will lead to sales growth and ensure consumer confidence. This type of service will make your current customers firmly entrenched with your company and new customers less likely to shop around for other avenues to purchase goods. It is always easier to keep and properly service and grow current customers than to search for new ones.
US News and World Report did a study and found that the average American business loses 15% of its customer base each year.
- 68% of customers who stop buying from one business and go to another do so because of poor or indifferent service.
- 14% leave because of an unsatisfactorily resolved dispute or complaint.
- 9% leave because of price.
- 5% go elsewhere based on a recommendation.
- 1% dies.
- 82% goes somewhere else because of a customer service issue!
The two most striking points are that only 9% leave due to price and 82% because of service! This is great news for dealers concerned about price, because you can increase your revenue by simply retaining and keeping your current customers happy and satisfied with your service.
Post written by: Jeremy Carle Zone Manager @ Gold Medal Products® Co.
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