April 18th , 2018

10 Shocking Customer Service Statistics You Need to Know

Customer service is the backbone of success in retail. With technology improving the way that retailers can serve their customers needs, the demand for improved customer service is only set to grow. The importance of the omnichannel customer experience will be amplified by the need for near-perfect execution, particularly when 89% of businesses are soon expected to compete mainly on customer experience. We’ve digested the plethora of facts and figures on customer service which are out there to provide you with the 10 essential statistics every retail business should know:

1. 78% of consumers have abandoned on a transaction or not made an intended purchase because of a poor service experience. Source: American Express

 2. A typical business hears from only 4% of its dissatisfied customers. Source: Understanding Customers by Ruby Newell-Legner


Image Source: Super Office

3. On average, loyal customers are worth up to 10 times as much as their first purchase. Source: White House Office of Consumer Affairs

4. Consumers tell an average of people about good experiences, and tell 16 people about poor experiences. Source: American Express. 

5. 3 in 5 consumers (59%) would try a new brand or company for a better service experience. Source: American Express

6. Almost 9 out of 10 consumers say they would pay more to ensure a superior service. Source : Customer Experience Impact Report by Harris Interactive

7. 70% of buying experiences are based on how the customer feels they are being treated. Source: McKinsey.


The probability of selling to a new prospect = 5-20%


The probability of selling to an existing customer = 60-70%

Source: Marketing Metrics

9. 81% of companies with strong capabilities and competencies for delighting the customer are outperforming their competition. Source: Customer Experience Maturity Monitor by Peppers & Rogers Group

10. It takes 12 positive experiences to make up for one unresolved negative one. Source:  Understanding Customers by Ruby Newell-Legner

These facts illustrate how consumer expectations are changing. Customer service is now one of the key factors consumers consider when making a purchasing decision. The rewards of excellent customer service have been shown to be intrinsically linked to increased profitability. Transforming your retail strategy to put the customer experience at the centre of your business is now the differentiator between successful retailers and those failing to get ahead in today’s competitive market. The customer is king; the further you go to delight them, the greater the rewards for your business.  

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