Corporate finance teams tend to view customer support as a cost saver at best and a cost center at worst. But if they look beyond those bottom-line concerns, they’ll also see a strong link to top-line growth. These statistics tell that revenue-related story.
Poor Customer Support Stalls Growth
Nothing scares away future revenue quite like a reputation for subpar customer service.
- 66% of B2B customers and 52% of B2C customers have stopped buying from a company following a bad service interaction. (Zendesk)
- 4 in 10 customers will avoid vendors for two or more years following a bad service interaction. (Zendesk)
- 83% of churned customers insist that better live or in-person customer service would have impacted their decision to switch providers. (Accenture)
- 68% of customers will not return after switching providers. (Accenture)
Superior Service Is A Marketing Magnet
Excellent customer support can be a powerful marketing asset — attracting interest, inspiring loyalty, and creating advocates in an incredibly cost-effective manner.
- 58% of customers will go out of their way to buy a product or service from a company they know will offer excellent customer service. (Northridge Group)
- 83% of customers trust the product or service recommendations of friends and family, making word-of-mouth the most persuasive advertising channel. (Nielsen)
- 77% of shoppers reporting an excellent customer experience are likely to recommend the brand. (Temkin Group)
Online Reviewers Are The New Experts
As trust in media, corporations, and government institutions continues to erode, more customers are seeking counsel directly from fellow their fellow shoppers.
- 92% of shoppers hesitate to make a purchase if there are no customer reviews. (Fan & Fuel)
- 91% of customers now regularly or occasionally read online reviews. (BrightLocal)
- 84% of customers trust an online review as much as a personal recommendation. (BrightLocal)
Happy Customers Are Big Spenders
Customers who are assured an exceptional experience are more likely to pay premium prices, build long-term brand relationships, and explore multiple product offerings.
- 45% of shoppers are willing to pay more for the promise of better customer service. (Accenture)
- 86% of shoppers reporting an excellent customer experience are likely to repurchase from their provider. (Temkin Group)
- 62% of B2B customers and 42% of B2C customers purchased more from a brand following a good service experience. (Zendesk)
- Among transaction-based businesses, customers reporting the best experiences spend 2.4x more annually than customers reporting the worst experiences. (Medallia)
- Among subscription-based businesses, customers reporting the best experiences remain members nearly five years longer than customers reporting the worst experiences. (Medallia)
- 10% to 30% of eCommerce revenues come from upsell and cross-sell recommendations. (Forrester)
Profits Come From Customer Retention
Solid customer support puts companies on a profitable track by reducing the risk of early churn and keeping customers in position to explore expansion possibilities.
- Increasing your customer retention rate by 5% increases profits by 25% to 95% (Bain & Company)
- 80% of a company’s future revenue will come from 20% of its existing customers. (Gartner)
- The probability of selling to an existing customer is 40% to 65% greater than selling to a new prospect. (Marketing Metrics)
- It is 4x more expensive for SaaS companies to gain $1 from acquiring new customers than from upselling existing customers. (Pacific Crest Securities)
- The median SaaS company needs 18 months of subscription revenue to recover its initial cost of customer acquisition. (Pacific Crest Securities)
So the next time you encounter anyone who doubts the value of investing in customer support, share a few of these statistics to remind them what they’ll be getting in return.