MarketingSherpa, a publishing company serving the needs of marketers, recently released their report, What’s Working in IT Marketing: Latest Stats for Software, Hardware, & IT Services Marketers, which includes statistics on lead generation, website management, and the 5 dangers/opportunities for 2006. While all the dangers are worth noting, the different views about customer service and pricing are alarming. Companies believe 21% of customers leave due to poor customer service, while customers estimate the figure is 73%. On top of that, companies think price plays a larger role than customer service in customer defection.

What this tells us is customers are willing to pay for service. If you have a web design/consulting or software company, don’t try to be the low cost leader. Somebody will charge lower and you’ll either burn yourself out or not earn enough. Instead, raise service levels and the customers will come faster than by lowering price. Answer emails promptly, inform clients every step of the way, include something “extra” in the product or service, or start a blog. Do something other than lower price. You’ll also create a nice competitive advantage since service isn’t easily duplicated.

While on the topic, here are two similar articles found this morning.

  • The Rising Tide of Customer Defection – “Right now somewhere between 32 and 94 per cent of all customers are thinking about ditching their current supplier for the competition.”

  • Satisfy Customers, Make Money – “It’s not a surprise that Google and Yahoo not only do a great job at satisfying their customers but are also both financial successes,” said Larry Freed, president and CEO of ForeSee Results, which co-sponsored the report. “So that’s a great testament to customer satisfaction.”

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Chris Campbell

Customer Service Is Key by Chris Campbell

This entry was posted 5 years ago and was filed under Notebooks.
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  1. Joe · 5 years ago

    Quality customer service is vital to driving long term business. Satisfied customers return for more and bring their friends. Disgruntled clients leave, take their money elsewhere, and tell horror stories about you for years to come.

  2. Chris Campbell · 5 years ago

    I had a business class that said the average person tells 9 more people about it. I don’t necessarily believe that number but word does spread fast.