The cost of the company's detractors.

The cost of the company’s detractors.

We are going to comment on the cost of detractors within the profitability balance of the customer experience. Today we are going to make a short reflection, but we believe that it is not very important. Although we have already talked about the profitability of the customer experience, we are going to focus on the concept of negative impact.

We have already explained that detractors are mistreated customers. Let’s not forget that they feel that way, so they are. The reason can be varied, the most common being a negative experience. There are also cases of potential leads influenced by the Word of Mouth (WOM) factor without ever having contact with the brand. The consequence of the existence of the detractor is evident, purchases decrease significantly.

 

The cost of the company's detractors.

 

These detractors do not appear on the balance sheet, but their cost is much higher than we imagine due to the following:

 

  1. They represent higher service costs.
  2. They demoralize the employees in contact with them.
  3. They worsen the company’s reputation, customer and employee recruitment.

Bad profits are due to detractors who strangle the company’s growth. And let’s not forget the bottom line: sales decline.

 

Loyalty is the key to profitable growth. Avoid the cost of detractors.

Without a systematic feedback collection mechanism, it is impossible to distinguish it. Without a proper testing process, we cannot detect this situation. The consulting firm Bain collected data showing that a 5% increase in customer retention means at least a 25% increase in profits.

You can see the evolution of the customer experience through this video summary presented by the consulting firm Bain, you can watch it at THIS LINK.

And as always, if you want to know more about this topic, write to us FROM HERE.

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