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Customer Satisfaction

Over the years, we have researched and compiled statistics on the importance of customer satisfaction and retention, its impact on the bottom line, and the merits of measuring customer satisfaction. Below is a collection of some of the most interesting statistics we have come across to date.

If you have any more statistics regarding customer satisfaction that you would like to share with us, please do not hesitate to send them in via our Contact Us page and we would be happy to add them to this page.

Customer Satisfaction

Customer Satisfaction

  • 91% of unhappy customers will never purchase services from you again. 1
  • At any one time 22% of all law firm clients are considering switching firms because of problems with their legal current firm. 2
  • For every customer who bothers to complain, there are 26 others who remain silent. 1
  • Typically only 25-30% of a firm's clients are completely satisfied - Such low satisfaction means that 70% or more of the firm's clients may be open to pitches from competing firms. 2
  • 70% of complaining customers will do business with you again if you resolve the complaint in their favour. 4
  • Each one of your customers has a circle of influence of 250 people or potential customers who hear bad things about you. 1
  • 96.7% of unhappy customers never let out even a squeak of dissatisfaction to the organisation that has given them bad service. . . according to research they will tell at least 15 other people, while satisfied ones will tell six at the most. 5
  • Almost 70% of the identifiable reasons why customers left typical companies had nothing to do with the product. The prevailing reason for switching was poor quality of service. 7

Client Retention:

  • It costs about five times as much to attract a new customer as it costs to keep an old one. 1
  • Raising customer retention rates by 5% could increase the value of an average customer by 25-100%. 6
  • The probability of selling service to a new customer is 1 in 16, while the probability of selling service to a current customer is 1 in 2. 2
  • Loyal customers who refer others generate business at very low or no cost. 2
  • It's easier to get present customers to buy 10 percent more than to increase your customer base by 10 percent. 4
  • The local pizzeria customer's lifetime value is $8,000. To a car dealership, over $300,000! Cadillac's own estimates on a customer's worth? $332,000 - taking into account the number of new vehicles a customer will buy, and the service fees they'll pay. General Motors puts the figure at $400,000+! 3
  • A typical supermarket customer's worth? $380,000! 3
  • The average business loses between 10 percent and 30 percent of its customers each year. 4
  • If a credit card company can hold onto another 5% of its customers each year (increasing retention rate from, say, 90 to 95%), then the total lifetime profits from a typical customer will rise, on average, by 75%. 6

Measuring Customer Satisfaction:

  • 96-100% of clients interviewed say they approve of client satisfaction surveys. 2
  • 60% of clients interviewed in person will give a firm new business within 60 days of the survey. 2

Article Credits

Collect feedback and ideas for improving your customer feedback - trial an Australian-built customer satisfaction survey tool:

PeoplePulse is an Australian-built online survey tool that is currently used by over 200 Australian and New Zealand based organisations of all sizes to conduct online customer surveys. The tool can be used to conduct cost effective satisfaction surveys, regular 'post-service' feedback surveys, new product feedback, website feedback ... to name a few popular uses.

Please complete the form below to arrange your FREE custom-branded customer feedback survey software demonstration and a PeoplePulse pricing and information sheet.

Upon completing the form below, a PeoplePulse representative will contact you to discuss your needs and current situation. From there we will set up your demo and arrange a suitable time to show the system to you:

Please be assured that your correspondence with us is confidential. We will not divulge email addresses or any other details you provide to outside sources.

The above demonstration request form was powered by PeoplePulse.

Article References:

  1. The White House Office of Consumer Affairs (
  2. Earl Sasser of Harvard Business School and Merry Neitlich of Extreme Marketing
  3. TARP (
  4. Eastbridge Consulting Group (
  5. Karl Albrecht (The Service Advantage, Dow Jones, New York, 1990, p. 199)
  6. Frederick F Reicheld (The Loyalty Effect, Harvard Business School Press, 1996 Chapter 2 - The Economics of Customer Loyalty)
  7. Forum Corporation research (

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