Marketing Research: How companies lose hundreds of millions per year!
Imagine that you lost $2.5 million because of the poor service! That sounds unbelievable but it’s a real situation. This problem was faced by one of our clients – an international company with a turnover of 68 million dollars a year. And this is only according to our research. The real losses are dozens, even a hundred times more!
This market research was conducted in 48 countries and on 3 continents, including China.
The main purpose of the study was to identify the company, taking into account the strengths and weaknesses, namely, how well the company’s sales were being performed.
We made several hundred queries and found that the company is losing 47% of online requests and 46% of telephone requests. Not bad, huh?
If you were the head of this company such financial losses would be incurred by your company as a result of poor service quality. According to our call center research, it turned out that:
- 65% of customers received an offer from the first contact with the company by phone.
- the remaining 35% received a successful offer from the second or more attempt. Can you imagine that the customer contacts your company three and more time while he can contact any competitor and you will lose money and customer loyalty?
Only 53% of potential customers received online feedback.
- 22% of mystery shoppers received a productive answer on the first try;
- and 78% of potential customers had to contact the company twice and more times aiming to receive the offer.
What are the odds that the company will be contacted again? Imagine that a waiter at a restaurant could only take an order for the third time and bring lunch. While you are hungry from the very morning and are still late for the meeting. Will you come back to this location? Or you can have a lunch in another restaurant.
Bad service is the best advertisement for a competitor. Think about whether you provide a free service to your competitor. And how many customers are satisfied with your service.
By global research, when customers were asked, “What is the good service?”
- 77% chose speed to resolution
- 55% said convenience, and
- 47% highlighted transparency.
And as a result of our research metrics, after contacting the company for the first time, 26% of customers were satisfied with the quality of the service on the phone and only 11% of customers were satisfied with online contact. And this is all with a normal customer satisfaction rate of 85 %!
As a result, the company lost regular clients and failed to get new ones. And, as you know, the probability that you will be able to sell the service/product to the existing client is 60-70%, but the chances that the purchase will be made by a new user are only from 5 to 20%.
In order to make sure that a market research study is required, we attach the results of this study in a PDF file
If you have already started to calculate your possible losses, don’t forget to add the costs to the bad work of your employees:
– providing an employee with a well-equipped workstation;
– purchase of licensed software;
– salaries to employees.
The time you spend on repeated requests processing could be spent on improving the quality of service. If the client waited for your feedback for the second time it is not bad, because you barely lost the client, but in such a situation, you will have to provide maximum impeccable service to smooth the situation. This creates a double burden on the work of the customer service center.
Marketing research confirms that the more efficient you solve the problem for once, the higher the customer satisfaction and the lower the cost of maintaining the company’s employees and attracting potential customers are.
Marketing research is aimed at ensuring that you can avoid the consequences that our customers have to face. All surveys are related to the information the company receives from surveys, interviews, and analysis of available data. This is a continuous cycle of activities carried out throughout the entire period of its existence, which will help to avoid mistakes that the above-mentioned company has made.
As you can see, even the leaders need to keep an eye on the pulse of the industry and regularly assess it:
What are the problems in servicing new potential customers
- How efficiently do b2b sellers work (do they even send offers to the interested parties?)
- Are the customers satisfied with the quality of service?
- Whether it’s easy to access the company on the first try?
The reasons for conducting marketing research may vary. But in the end, we come to the only justified reason – to make a profit. In order to do this, we need to study all the available information. What can you do right now?
a) Look at the competitors – try to use their services
b) Ask clients for feedback and find out what they say about you on social media.
c) Look at the expert analysis of your industry.
If you know how to improve the service quality of your business, send your results to the international marketing research company Scheduling Worldwide by 4Service, and we will be able to audit your work and tell you what needs to be corrected. If you can’t do it yourself, we will be happy to help you. Never underestimate the benefits of good market research.
It will give you the opportunity to keep your hand on the pulse and be ahead of your competitors. And its absence in any business will eventually affect the end result, and, as you have already guessed, not in a positive way. Scheduling is ready to come to your service’s rescue so you can avoid mistakes and improve your performance!