LSA Global Insights Newsletter: 3 Steps to Connect Customer Loyalty to Increased Revenue

2.28.2011

3 Steps to Connect Customer Loyalty to Increased Revenue

Does customer service really drive revenue?

When I have a bad customer experience, I typically form a bad impression of that company that impacts my buying behavior. Is that true across the board?

Studies consistently affirm that the quality of front-line service our customers experience links directly to how loyal they are to our brand, our products, and ultimately to the amount of revenue and profit generated from those customer relationships.

Recent metrics on the difference in customer loyalty between companies in the top quartile of customer experience (when measured against industry averages) and the companies in the lowest quartile showed:

  • 14.4% more customers willing to buy a follow-on product
  • 15.8% more customers reluctant to switch
  • 16.6% more customers likely to recommend
In another study conducted across 12 industries, the revenue change from a 10 point increase in a firm's Customer Service Experience Index adds $284 million to the bottom line for every $10 billion in revenue.

So, while customers may not always tell you directly what they think or how they feel about the service we provide, it's our job, as Customer Service Professionals, to ensure that their experience with us and with our organization is a highly positive one. We need to listen to what they say and what they are not saying as both have bottom-line impact.

Read more about the 3 steps to drive revenue through customer service performance...




About LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned