In the customer service world, businesses are learning very quickly that it's important to treat their customers right. One of the major pillars of our economy in the US is that if you don't like a product or service, you can switch to a competitor. After enough time, the business with a poor service will either have to make a change or vanish. Quite a few companies are trying to use customer service as an advantage and the facts show that customer relations management (CRM) will make for happier customers, and more business. There are a ton of CRM comparisons out there on the web, I'm not going to get into a comparison today, but I can say that most of the most popular CRM's are widely used for a reason.
It may seem like the return on investment may not be worth it, but having happy customers means more referrals, more sales, and a more financially secure establishment overall. Here are a few stats showing just how much of a difference having the best CRM possible can make.
There's a staggeringly large difference between consumers who will refer a business to friends and family. 71% of polled consumers said they would refer a company after a positive customer service experience, and only 19% said they would after no customer service assistance. So it is becoming increasingly important to interact with your customers.
2. Losing Business Quickly
65% of polled consumers said that they've completely stopped using a product or service after only one instance of bad customer service. That can be a quick drop in sales and profit, especially for smaller companies who may rely on only one location for all of their customer service.
3. Online Communication
With instant worldwide communication becoming so prevalent in the daily lives of nearly every consumer, it's no surprise that 63% of online consumers are more likely to use a website again if they are offered live chat support. Considering the rapid increase in online purchasing, this can be the difference between a customer using your online service on a daily or weekly basis, or once in a life time.
4. Ease of Access
Smartphones are everywhere, and the data available on them is enormous. That data should be more focused on commonly asked questions regarding brands and products, 75% of consumers say. Not only will this save money in terms of customer service representatives, but can also lead to happier, better informed customers.
5. Rate of Return
In addition to drastically improving customer service, the average rate of return for every $1 spent on customer relations management programs is $5.60. Such a high payoff for a simple move can completely overshadow the ROI of many other investments. The returns typically come in the form of higher sales, more return customers, more referrals, and increased employee productivity.
6. Working Smarter
If you're a sports or TV fan then you are probably pretty aware of the term "chord cutting" which basically means trimming the fat of your TV service, streamlining your channels and ultimately not only paying less money, but spending less time watching TV you are not interested in. CRM's are the "chord cutters" of the sales industry. CRM's keep your customers organized, and your employees engaged with what actually matters. A recent study found that sales representatives who had access to mobile CRM apps showed an overall productivity increase of 15%. CRM's are one of the most popular ways to improve workflow in your marketing.
7. Is it worth it?
There are forecasts that anticipate the global customer relationship management market will be worth $36.4 billion by 2017. Typically, the cost of something is not completely indicative of its worth, but in this instance the CRM market is going nowhere but up. This is a good example of how useful and profitable it really can be. Increased customer satisfaction is a positive goal no matter what business you're in, and the numbers prove it.
8. No Matter the Relationship
Customer service is not simply trying to improve the experience of a person walking into a store or restaurant. Many companies do most or all of their business with other companies, and improving their relationships is only going to improve the profits of each relationship. A study found that 37% of business to business buyers ask questions on social media sites when looking for answers, so having a healthy online presence to answer these questions can be a smart move.
9. It's Never Too Late
78% of polled consumers said that they have abruptly ended a transaction or have not made a purchase because they experienced unsatisfactory customer service. This goes hand-in-hand with the importance of customer satisfaction, as it's never too late for a potential consumer to decide that they don't want to give a company their business.
10. Returning Consumers Matter
The chances of selling a product to an existing customer are between 60 and 70%, while the chance of selling to a new customer is between 5 and 20%. Keeping your customers happy and coming back is the key to running a successful business, and a good reason to implement the best CRM systems possible.
There are a tremendous number of other statistics available that showcase the ROI of customer relations management, showcase how successful business almost universally implement it, and try to awe readers with giant profit margins. The most important point to realize is that without customers, there is no business.