The True Cost of Losing a Customer

One negative customer experience may seem like a drop in the ocean of all your customer interactions, but it’s never that simple. Consider these statistics from a recent survey from NewVoiceMedia:

After experiencing poor customer service:

•  37% of customers would change their supplier
•  28% would post a negative online review
•  26% would complain via social media
•  13% would tell friends/colleagues
•  10% would inform the media

It’s worth mentioning that many customer relationships can be saved even after a bad experience with the actual product or service, particularly if they choose to contact a customer service rep. But if that interaction also results in a negative experience, the customer support experience can become the straw that breaks the camel’s back.

The far-reaching impact of a damaged reputation, the lost lifetime customer spend, and the expense of winning back that customer and/or acquiring new ones add up to a significant loss – in terms of both revenue and reputation.

Calculating Lifetime Customer Value

Obviously, the cost of losing a customer isn’t as simple as the loss of one particular sale or the associated make-good. You have to assume that had that customer had a positive experience – both with your product/service and with your customer service team – they would have continued to buy from you and recommend your brand to others.

According to research, only 42% of companies are able to accurately measure lifetime customer value. This is a knowledge gap that prevents companies from comprehensively understanding the impact of a single customer on their revenue, and, in turn, how their customer experience impacts the company’s success.

If you’re ready to tackle the math, check out this post from Hubspot.

The LVT calculation can play an important role in determining the ROI of your customer care team, and specifically, the customer save team.

The Cost of Customer Retention vs Acquisition

It’s common knowledge that it can cost five times as much to acquire new customers versus retaining existing ones – and 70% of surveyed companies agree it’s cheaper to retain. Acquisition costs are seen in sales efforts, marketing, and advertising as well as customer onboarding, but it’s retention that appears to gain the most profit in return; a mere 5% increase in retention rates can garner 25-95% extra profit.

How do these statistics help us determine the cost of losing a customer? At its most basic, every lost customer creates the need to acquire a new one. And, as we can see, acquiring those “replacements” can get expensive.

A Real Life Example

A client of ours operates with entitlement contracts for their highest-value enterprise-level customers, requiring parts and labor onsite within either a two- or four-hour window (depending on contract terms) if that customer experiences an outage.

When one of our client’s customers experienced multiple cases of delays in part deliveries, the customer threatened to switch suppliers. In response, we at Blue Ocean created a 24/7 team of Subject Matter Experts dedicated to supporting this particular customer. We established separate KPIs for the team and empowered them to make decisions and take action outside of standard protocol. In addition, we collaborated closely with our client’s warehouse and logistics partners to ensure we were aligned in overcoming any obstacles that impacted on-time deliveries and feeding data upstream to prevent future delivery delays.

With this approach, results improved from an average of 71% on-time delivery to 95%+ on-time delivery rates month after month. This is an example of a company that understands how important it is to deliver outstanding service to existing customers. Their retention efforts, in this case, were complex but essential to avoid the devastating impact of losing a top tier customer with a significant LVT to the company.

Protecting Against the Cost of Losing a Customer

Losing a customer isn’t as simple as losing a single sale. The impact is far-reaching, and companies must have a thorough understanding of the extent of this cost in order to understand the true importance of excellent customer service and experience.

From a ruined reputation to a lost lifetime of sales to a never-ending cycle of replacing old customers, the cost is considerable. Are you ready to protect yourself against this expense? We’d love to chat with you about building a better customer experience.

Source: https://blueocean.ca/cost-losing-customer/

2023 Buyers Guide

Get Listed

Telecoms

 

1.)

Cloud IT Services GmbH Dialfire Dialfire offers you a complete call center solution that is simple and intuitive to use and adapts to your needs. It's completely cloud-based, saving you the hassle of setting up a phone system and installing software. In addition to predictive dialing and call blending of inbound calls, you can create personalized campaigns through an intuitive and easy-to-use interface. Features include automated workflows and full control over the agent screen. You can see the full list of features here:

2.)

Cloudonix Cloudonix’s smart voice calls enable frictionless experiences that drive better customer care and faster sales by merging voice and data into a complete service context. Cloudonix add Cloud capabilities to your existing on premise Call Center enabling your agents to work from anywhere in the world. Security, Privacy and more – rapidly deployed and cost effective without replacing your existing systems or retraining your team.

3.)	Connectica Solutions, LLC PBX On The Cloud We provide complete Cloud-based PBX/Phone Systems, including predictive and progressive dialers, phone lines in more than 75 countries and low cost international rates. We specialize in the US and Latin American market.

4.)	DiRAD Technologies AI Powered Contact Center Provider, AI Chat & Voicebot, Enterprise Telephony Take advantage of the latest customer service innovations with Contact Center, Virtual Assistant, and Interactive Voice solutions for accessible, 24×7 services across multiple channels.

5.)	Layer One Technologies Layer One Technologies provides information and communication technology (ICT) services to businesses in the greater Charlotte area. Whatever your cabling needs, we have you covered.

6.)	Lexico Telecom SIP TRUNK PROVIDER We provide competitive SIP trunk services with different level of quality, IVR mailing service, pay per call servise, DID numbers service.

7.)

Megacall VOIP services Stay in contact quickly and easily with your international offices through Megacall. Megacall will fulfill all your telecommunication requirements and on top of that go the extra mile and surprise you with new possibilities for your business, speed to action your requests and keeping within your budget. 📞 Virtual Switchboard 🔌 SIP trunk 🔢 Virtual number 📠 Call Center Solutions

8.)

NetSapiens SNAPsolution Our SNAPsolution – UC and Collaboration tools – can be quickly deployed so you can realize your ROI just as quick. netsapiens offers a comprehensive suite of unified communications (UC) & Contact Center (CC) feature-sets to service providers. Custom-built to provide our partners with unprecedented levels of flexibility, customization, and ease of use. netsapiens allows you to control your margins in order to improve your ROI. As a provider of a facilities-based solution, you are able to personally choose your origination, termination, hardware costs, etc. to fit your budget. We also allow you to strategically price your product for a maximum return on your investment by charging on a conc... (read more)Our SNAPsolution – UC and Collaboration tools – can be quickly deployed so you can realize your ROI just as quick. netsapiens offers a comprehensive suite of unified communications (UC) & Contact Center (CC) feature-sets to service providers. Custom-built to provide our partners with unprecedented levels of flexibility, customization, and ease of use. netsapiens allows you to control your margins in order to improve your ROI. As a provider of a facilities-based solution, you are able to personally choose your origination, termination, hardware costs, etc. to fit your budget. We also allow you to strategically price your product for a maximum return on your investment by charging on a concurrent call basis instead of charging per-seat or per-feature. SNAPsolution, SNAPvantage, and SNAPanalytics give you all the tools to start off strong in the VoIP industry while giving you room to grow efficiently within your means. Why Sessions, Not Seats? The era of the mobile workforce is upon us. In fact, Google recently put out an estimate that 80% of the global workforce is now performing deskless work every day! Unfortunately, when it comes to providing Unified Communications (UC) features to these deskless employees, many systems operators, carriers and service providers are stuck investing in their platforms on a per-seat basis. That limits them to chasing only about 20% of the workforce - those with actual seats and desks. Why not expand your addressable market and open your business model to chase up to 5 times as many clients as you are today? If a majority of the workforce today doesn’t have a desk, does it make sense to purchase the UC solutions you want to sell by the seat? We don’t think so. That’s why we’ve created this report titled Sessions, Not Seats. In it, we’ll show you why finding a UC platform, like our SNAPsolution, that charges for sessions instead of seats is the way to go.

9.)

Nuxiba Technologies CenterWare Build a strong business presence and improve customer relationships! Offer custom-tailored solutions throughout your sales cycles and customer interactions and assess service levels and control corporate goal achievement through reports and statistics. Obtain detailed reports based on relevant activity in your contact center, access our quality module to assess calls and performance, apply surveys, develop scripts, record conversations, and more! Schedule a live demo or request a quote today!

10.)

PRILINK Demarc Network Traffic Monitor A lightweight Network Traffic Monitor that privides real-time traffic alerts and tracks all IP and SIP endpoints at Demarc. It analyzes mirrored SIP Trunk and Internet traffic in real-time and compiles Network Traffic Analytics (NTA) for all endpoints giving daily network traffic telemetry, most active endpoint summary, endpoint search table and more.

11.)

Scopserv Integrated Services ScopTEL IP PBX The ScopTel IP PBX solution is a distributed software application that can be installed on both virtual and physical servers, thus offering a multitude of architectural designs from premise-based servers to a centralized data center (DC) hosted WAN environment. The application is distributed as an ISO which includes the customized Linux operating system

12.)

Televergence Long Distance and Toll Free Specialists for Contact Centers Televergence is a facilities based US Nationwide High volume/High Capacity Inbound and Outbound VoIP Carrier for Contact Centers. We specialize in termination (outbound) and origination (toll free and local DID) for the contact center. We have a technical staff that is up to date on the majority of platforms in use today, including asterisk and Vicci dial, as well as many of the currently in use software platforms. Contact Centers generally see cost reduction and containment when using Televergence as their contact center telecom carrier. Televergence is the only active US VoIP carrier certified by the Women's Business Enterprise National Council (WBENC), which enables our services to qualify for meeting corporations Supplier Diversity Needs.

13.)

The Phone Number Testing Company Phone Number Testing and Validation Bulk testing and validation of UK Landline and mobile numbers, with a growing list of other coutries where we can test. If you own a large customer or business prospect sales database, our service helps you to quickly and accurately cleanse all the dead records, by identifying all the dead phone numbers. We offer a free no obligation test trial

 

View more from Blue Ocean Contact Centers

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