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Do You Know?

Customer Acquisition

It costs 5 times more to acquire a new web customer than an existing customer via the web.
- Boston Consulting Group

When companies identify and respond to loyal customers, they reduce their customer acquisition costs by 27%.
- Jupiter Research

It costs 3- to 5-times more in marketing costs to acquire a new customer than it does to keep an existing one.
- Davidow and Uttal

It costs 6 times more to attract a new customer than it does to keep an old one.
- ‘Understanding Customers’ by Ruby Newell-Legner


Customer Lifecycle

95% of unsatisfied customers don't complain but simply stop buying from a merchant.
- Technical Assistance Research Programs (1986)

More than 85% of marketers ran multi-channel campaigns, yet under half knew which channels their customers prefer.
- ExactTarget's 'Channel Preference Study' (2002)

A survey of more than 900 executives across different industries revealed that companies that set goals for improving customer loyalty are 60 percent more profitable than those that lack such a strategy.
- 'Manufacturers build on CRM' by J. Saunders (1999)

It takes 12 positive service incidents to make up for 1 negative incident.
- Lee Resource Inc

Repeat customers spend 67% more and are more profitable.
- Bain & Company

 

Customer Experience

80% of companies believe they deliver a superior customer experience, but only 8 % of their customers agree
- Bain & Company

One point in customer satisfaction translates into 3% Market Value increase
- American Customer Satisfaction Index by University of Michigan

73% of U.K. consumers ended a relationship due to a poor customer experience. The average value of each lost relationship is £248 per year
- The Cost of Poor Customer Service: The Economic Impact of the Customer Experience


Customer Retention

Even a 5% reduction in the customer defection rate can increase profits by 25% to 85%, depending on the industry.
- 'The loyalty effect' by Reichheld (1996)

1% improvement in retention can increase firm value by 5%.
- 'Valuing Customers' by Gupta, Lehmann, and Stuart (2004)

A 5% increase in customer retention yields an increase in profits between 25%-100%.
- Bain & Company

65-85% of customers who switched suppliers said they were satisfied or very satisfied with their former supplier.
- A Harvard Business Review study

68% of customer defection takes place because customers feel poorly treated.
- TARP Worldwide


Online Purchase

More and more offline purchases are being influenced by online activity. 70%+ of consumers do pre-purchase research on the Web
— Forrester Research

The second most popular activity online is searching for product or service information.
— US Department of Commerce

92% percent of online consumers use the Internet to shop and/or purchase online.
- The NPD Group Inc.

50% of online shoppers would not make future purchases from an online merchant that delivered an item in a color that was not what they expected.
- BizRate.com Study (2000)

Product representation, which by nature must include color, was the third highest factor affecting likelihood to buy again from a particular online merchant.
- 'What attracts customers to online stores, and what keeps them coming back?' by D.J.Reibstein (2002)

Impact of inaccurate color on e-marketing shows that customers often simply stop shopping at an e-commerce site if they are dissatisfied with the product that they receive.
- 'The impact of color in the ecommerce marketing of fashions' by Nitse, Parker, Ottaway, & Krumwiede (2004)

Multichannel retailers reported that 46% of their online customers also purchase offline, and conversely, 17% of their offline customers purchase online. In addition to direct online sales, these retailers reported that the Web influences 15% of their offline sales.
- Shop.org


Website Performance

28% of Web users do not return to a company’s Web site if it does not perform sufficiently well, and a further 6% do not even go to the affiliated retail store anymore. 
- Boston Consulting Group

A 50% degradation in website performance leads to a 25% reduction in conversions.
- Jupiter Research

There is a nearly 50% relationship between performance and site abandonment — i.e., a 10% decrease in site leads to a 5% increase in site abandonment.
- Zona

Not only does page performance determine whether or not visitors hang out at given sites, it directly influences their attitudes towards returning—58% note performance as a key determinant as to whether they’ll visit again.
- Forrester Research

When a site experiences an outage, 9% of online customers permanently abandon the site, and 48% of site users establish a relationship with a competitor.
- Jupiter Research

Organizations must ensure that the Web site is engineered to deliver the best possible experience for each customer. Without this quality of experience, the Web site can damage the overall brand image of the company.
- META Group

Nearly 50% of Internet users have stopped using a preferred site for some amount of time because of slow download times and poor customer experience.
- Jupiter Research

E-commerce web sites must address the problem of inaccurate color depiction in order to reduce the number of customer defections attributed to incorrect colors.
- The impact of color in the ecommerce marketing of fashions by Nitse et al. (2004)

Of online shoppers surveyed, 51% percent stated site performance/speed as having an influence on their buying behavior.
- Vividence

On average, a highly influential Internet user relates a positive experience to 11 people, but a negative experience to 17 people, a 55% difference.
- Burson-Marsteller and Roper Starch Worldwide

Many consumers who become frustrated with an online site… blame the retailer, not the Internet.
- Boston Consulting Group

Poor image quality, along with slow-loading Web pages were the reasons 64% of survey respondents said they didn’t complete online purchases; 55% of consumers faced with poor image quality and problematic downloads reported they either gave up on their desired purchase or bought from the competition.
- Greenfield Online survey


Customer Service/Service Calls

Successful efforts to cross-sell during inbound service calls could boost a retail bank's sales of new products by 10%.
- McKinsey estimates on a study of North American banks.

There are "trigger" words and phrases that can cause you to lose your customers for good—just within the first 5 seconds of conversation?

Dissatisfied customers whose complaints are taken care of, are more likely to remain loyal, and even become advocates, as those that are ‘just' customers.

85% of consumers are dissatisfied with their phone experience
- A Gartner Study

50% of the people surveyed said that agents failed to answer their questions
- Harris

93% of customers indicated that quality customer service was vital to maintaining brand loyalty.
- Creative Strategies

70% of customers left because of a lack of attention from front-line employees.
- International Customer Service Association

Two-thirds (or 66%) of customers do not feel valued by those serving them.
- Business e-coach