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Customer
Satisfaction Case studies
"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.
All
or nothing: Customers must be 'Totally Satisfied' Steve Lewis. Marketing
News. Chicago:
Mar
2, 1998. Vol. 32, Iss. 5; pg. 11, 2 pgs
“Its
“Totally Satisfied” customers were six times more likely to repurchase
Xerox products over the next 18 months than its satisfied customers.”
Why
Satisfied Customers Defect. By: Jones, Thomas O.; Sasser Jr., W., Harvard
Business Review,
Nov/Dec95,
Vol. 73 Issue 6, p88, 14p
"A mere five percent reduction in customer defections increases company profits by 25 percent to 85 percent."
Research by Fredereich F. Reichheld and W. Earl Sasser at Harvard University.
“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”
Timothy
L Keiningham, Tiffany Perkins-Munn, Heather Evans, Journal of Service
Research : JSR. Thousand Oaks:
Aug
2003. Vol. 6, Iss. 1; pg. 37
“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.”
American
Society For Quality,
February
2003
“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,
February
2003
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 didn’t like the human side of doing business with the
prior provider of the product or service’.
Tom
Peters, The Pursuit of Wow
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.
International Lift Equipment
Ulbrich Stainless Steel
Atlas Copco Construction Tools of Canada
The Transport Research Laboratory
Abram Pulman Steel
British Vita
Articles
This is not quite a case study but is taken from the Quality World
magazine.
From the Chartered Institute of Marketing July 04.
A six-step guide to getting the most from a customer base, published in the September 05 issue of B2B Marketing (www.b2bm.biz).
Marketing Leadership - an outsider's view - The Marketing Leaders
Professor Fred Reichheld and the Net Promoter Score
How to get the most out of a limited b2b marketing budget.
And finally, this is how not to word a survey. Click here