In 2015, mature markets like North America and Western Europe saw Internet penetration exceed 80% (with the United States nearing 90%). This high level of adoption has shifted the focus of service providers across these regions to heavily invest in customer experience management platforms instead of attracting new customers with advertisements.
This shift isn’t just specific to data services. Help Scout recently compiled data from a variety of sources that found there are a number of reasons that businesses everywhere are implementing more robust customer management solutions.
78% of consumers have left a transaction or not made an intended purchase because of a poor service experience (American Express)
It costs 6–7 times more to acquire a new customer than it does to keep a current one (White House Office of Consumer Affairs)
3–5 customers would try a new brand or company for a better service experience(American Express)
91% of unhappy customers will not willingly do business again if they’ve received bad customer service (Lee Resources)
The numbers are astounding. It’s clear that customer experience is a key driver to keep revenue streams flowing. But what about increasing the bottom line?
The probability of selling to a new prospect is between 5–20%, while probability of selling to an existing customer is between 60–70% (Marketing Metrics)
On average, loyal customers are worth up to 10 times as much as their first purchase (White House Office of Consumer Affairs)
Resolving a complaint in the customer’s favour means they will do business with you again 70% of the time (Lee Resources)
A great customer experience not only reduces churn to keep revenue streams flowing – it actually makes increasing revenue much easier. Unfortunately, statistics show us that most businesses fall short of customer expectations. In general, 75% of customers believe it takes too long to reach a live agent, while 67% of customers hang up their phones out of frustration they could not talk to a real person. These numbers are crucial to any organization that wants to ensure consumer happiness, because on average it takes 12 positive experiences to make up for one unresolved negative experience.
So, as an operator, what can you do? How can you improve customer experiences to reduce churn and increase revenue? Find out in next week’s blog post, “5 Easy Ways to Improve Customer Experiences.”
This post originally appeared on www.incognito.com/blog. Incognito Software Inc. is a Volaris Group company.
April 14, 2015
David Nyland is a Portfolio Manager and President of the Volaris Communications & Media Industry Group. He began his career as a software developer at a Tier 1 systems integrator, and quickly moved into entrepreneurial roles at 2 telecommunications software start-ups which scaled and were sold to strategic acquirers. Since then David has been CEO of 2 companies, a public company with global scale, and a VC-funded private business, during which he completed acquisitions of businesses in North America and Europe. David joined Volaris in 2013 to build a Communications and Media portfolio for Volaris, and has since completed numerous acquisitions worldwide including in Canada, Sweden, US, Switzerland, and Singapore. David has a passion for software and telecommunications technology and building synergistic businesses that scale profitably. His goal is to develop a strong synergistic portfolio of companies and hold them forever.
ACQUISITION NEWS - Volaris Group Acquires Symbrio AB Learn More