Improved Customer Experience Drives Increased Customer Acquisition
In a world where customer perception of experience equals reality, positive word-of-mouth drives more new customers, while poor experiences push customers away.
Word-of-mouth (“WOM”) is widely recognized as the most powerful way to get more customers. In fact, it is the number one influence on consumers’ purchasing decisions. In short, nothing is as powerful at influencing what people say about your company as customer experience. And in the world of blogs, social media and an always-on customer base, the resulting news can either sink your business, or drive massive increases in customer acquisition.
- Good experiences drive positive Word-of-Mouth and new customers
60% of consumers say the top reason they’re willing to recommend a company is “outstanding service.” And for those who actually do, they tell an average of 9 people. Simply stated, companies see incremental sales from people who go on to buy after hearing positive word of mouth.
- Bad experiences drive negative Word-of-Mouth and lose customers
Today, 86% of customers who have a bad experience will leave and never come back. 74% actively tell others about bad customer experiences. And they don’t just do it a few times; on average, they’ll tell nearly twice as many people (16) about a bad experience than a good one.
Most companies don’t have any means of measuring the effect of experience on WOM. That’s because they don’t know what current experiences are. That’s where Touchpoint Metrics can help; no matter your business, our tools will help you track your experience to see what customers say about your company — and learn how to get more of the right customers as a result.