Love Your Clients – The Power Of Customer Orientation
The question is, is it better to retain current customers or it is better to acquire newer ones? A survey was conducted and the following discoveries were made.
• Some customers feel that sellers are indifferent towards them. This accounts for about 68% of them leaving.
• Decreasing cost by 20% has the same effect as increasing customer orientation by 2%.
• Profitability can be increased to up to 125% if customer defection rate is reduced. However, this depends on the industry.
Why Do Clients Leave?
• Study has revealed that poor customer service accounts for up to 68% of customers leaving.
• About 14% leave because they are not satisfied with the product.
• 9% start working with the competition.
• Those who seek other alternatives forms 5%.
• 3% relocate.
• Those who pass away forms 1%.
For customers who place more importance on the customer experience, 60% generates more profits as compared to their competitors. This has proven to the true as for every satisfied customer tells up to 9 persons about the quality service he has gotten while for every dissatisfied customer, he tells about 22 persons of the service he has gotten.
The importance of the above findings should be taken into high regard as 80% of future profits will come from 20% of existing clients.