Price is not the main reason for customers’ departure, it’s poor customer service.
According to Darren Bugg, from The Customer Service Blog and Yorkshire Managers, a customer is 4 times more likely to defect to a competitor if a problem is service-related, than if it’s price/product-related.
Research shows that the probability of selling to an existing customer is 60 – 70%, whereas the probability of selling to a new prospect is 5-20%. It costs around 6 – 7 times more to acquire a new customer than retain an existing one.
For every customer complaint there is an average of 26 other unhappy customers who have remained silent. 96% of unhappy customers don’t complain at all. 91% of them will simply leave and never come back.
A dissatisfied customer will tell on average 9 – 15 people about their negative experience. Around 13% of dissatisfied customers tell more than 20 people. Customers who get their issue resolved tell about 4 – 6 people about their experience.
Around 70% of buying experiences are based on how the customer feels they are being treated. More than half (55%) of customers say they would pay extra to guarantee a better service.