InfoQuest performed a statistical analysis of Customer Satisfaction data encompassing the findings of over 20,000 customer surveys conducted in 40 countries by InfoQuest.
The conclusions of the study were: -
- A Totally Satisfied Customer contributes 2.6 times as much revenue to a company as a Somewhat Satisfied Customer.
- A Totally Satisfied Customer contributes 14 times as much revenue as a Somewhat Dissatisfied Customer.
- A Totally Dissatisfied Customer decreases revenue at a rate equal to 1.8 times what a Totally Satisfied Customer contributes to a business.
“Totally Satisfied” customers have a repurchase rate that is 3 to 10 times higher than that of “Somewhat Satisfied” customers. This is documented by research at Xerox and in other industry studies.
Its Totally Satisfied customers were six times more likely to repurchase Xerox products over the next 18 months than its satisfied customers
All or Nothing: Customers must be ‘Totally Satisfied’ Steve Lewis, Marketing News, Chicago
A mere five percent reduction in customer defections increases company profits by 25 percent to 85 percent.
Why Satisfied Customers Defect – Thomas O. Jones & W.Sasser Jr., Harvard Business Review
“The relationship between satisfaction and actual share-of-wallet in a business-to-business environment is not only a positive relationship but the relationship is non-linear, with the greatest positive impact occurring at the upper extreme of satisfaction levels.”
Research by Fredereich F. Reichheld and W. Earl Sasser at Harvard University
By examining contract renewal rates (Johnson Controls) found a one point increase in the overall satisfaction score was worth $13 million increase in service contract renewals annually.
Timothy L Keiningham, Tiffany Perkins-Munn, Heather Evans, Journal of Service Research : JSR. Thousand Oaks
IBM Rochester determined that if customer satisfaction level increased one percentage point, an additional $257 million in additional revenue would be generated over five years. The ratio of revenue growth between very satisfied and satisfied customers was 3:1.
American Society For Quality
The Forum Corporation of America analyzed the causes of customer migration in 14 major manufacturing and service companies and found that 15 percent migrated because of quality issues, and another 15 percent changed supplier because of price issues. The remainder, 70 percent, moved on because they did not like the human side of doing business with the prior provider of the product or service
Tom Peters, The Pursuit of Wow