Tag Archives: customer retention

[Infographic] How to Ruin Your Business with Bad Customer Service

[Infographic] How to Ruin Your Business with Bad Customer Service-315

[Infographic] How to Ruin Your Business with Bad Customer Service-315It’s easier to destroy something than to build it, which is why a seemingly simple mistake in customer service can ruin your business’s reputation. Don’t want to get on the bad side of your customers? Then avoid the following:

Slow responses

Speed is essential when dealing with customers, especially those with complaints. The longer it takes for you to reply, the angrier they get. And even those who weren’t upset, to begin with, will get impatient if you make them wait too long. Note that 77% of adults in the US feel that valuing their time is part of good customer service.

Broken promises

Companies keep their word only half the time, resulting in irate customers. Thus, don’t tarnish your brand’s reputation by making promises you can’t deliver on. Otherwise, people will lose their trust in you. For example, if you say shipping takes one to two calendar days, then ensure purchased items reach their buyers within that time frame. If you can’t fulfill that, set more realistic expectations.

Poor knowledge

Your customer service agents should be the experts, so “I don’t know” is not an acceptable response. Even if they don’t know the answer, they should tactfully frame their response like “I’ll look this up and get back to you.” Customers don’t like it when they know more than the agents.

Thank you Jitbit.com for this great infographic!

[Infographic] How to Ruin Your Business with Bad Customer Service-315

Customer Acquisition vs. Customer Retention [Infographic]

Customer Acquisition vs. Customer Retention -315

Customer Acquisition vs. Customer Retention -315Which is more effective, customer acquisition vs. customer retention? Only 18% of companies focus on the latter, while 40% focus on the former.

The Costs

Yet, acquisition costs 5 times as much as retention. This is because marketing eats up a bulk of the budget, and not all people who are targeted by ads become customers. On the other hand, retention programs designed to keep existing customers happy often result in repeat purchases, along with word-of-mouth advertising that attracts new customers.

The Numbers

The numbers speak for themselves. Existing customers are 50% likelier to check out the new products and services of a brand they trust. They also spend 31% more money than new customers. This means that when customer retention increases by just 5%, businesses can increase profits by anywhere from 25% to 95%.

It’s more affordable to retain existing customers, and more profitable. So make sure loyalty pays for your current client base.

This infographic focuses in on customer acquisition vs. customer retention, courtesy of Invesp Consulting.

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Infographic by- Invesp