Traditional Marketing Is Dead…Empower the Customer and Improve the Experience

“Cause of death was the empowered customer. Empowered to avoid avertising, empowered to find their own information, and empowered to share their own opinions”.

Emerging media has left customers empowered. Digital recording devices allow customers to fast-forward through TV commercials, there is a blog, podcast or even web page for almost anything one could ever want to know, and there are countless social media platforms that allow customers to write and share personal opinions of products, brands and companies.

The only thing left for companies to control is the ‘customer experience’. Zappos is one company that has mastered the customer experience and thus was one of the lead brands to ‘kill’ traditional media. “Seventy-five percent of its [Zappos] business comes from repeat customers”.

According to the 2012 American Express Customer Service Barometer, “93% of companies fail to exceed expectations.” This means only 7% feel their business is valued and that the company is willing to go the extra mile.

Emerging media offers something traditional media never did: two-way communication. If companies can only control the customer experience, but work to make that experience remarkable and memorable customers will not only return but they will bring their friends. You just created ‘brand ambassadors’! These individuals just became your company’s best asset!

15 Statistics That Should Change The Business World – But Haven’t 

1. Price is not the main reason for customer churn, it is actually due to the overall poor quality of customer service – Accenture global customer satisfaction report 2008.

2. A customer is 4 times more likely to defect to a competitor if the problem is service-related than price- or product-related – Bain & Company.

3. The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% – Marketing Metrics.

4. For every customer complaint there are 26 other unhappy customers who have remained silent –Lee Resource.

5. A 2% increase in customer retention has the same effect as decreasing costs by 10% – Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy.

6. 96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back – 1Financial Training services.

7. A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people. – White House Office of Consumer Affairs.

8. Happy customers who get their issue resolved tell about 4-6 people about their experience. – White House Office of Consumer Affair.

9. 70% of buying experiences are based on how the customer feels they are being treated – McKinsey.

10. 55% of customers would pay extra to guarantee a better service – Defaqto research.

11. Customers who rate you 5 on a scale from 1 to 5 are six times more likely to buy from you again, compared to ‘only’ giving you a score of 4.8. – TeleFaction data research.

12. It takes 12 positive experiences to make up for one unresolved negative experience – “Understanding Customers” by Ruby Newell-Legner.

13. A 5% reduction in the customer defection rate can increase profits by 5 – 95% – Bain & Company.

14. It costs 6–7 times more to acquire a new customer than retain an existing one – Bain & Company.

15. eCommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers – McKinsey.

So my question to you is this: with this weight of evidence, why do organizations still not truly focus on improving the Customer Experience?


2 thoughts on “Traditional Marketing Is Dead…Empower the Customer and Improve the Experience

  1. joanncarpenter says:

    Great post that proves the most important factor is the customer experience. This article in HBR ( further describes the dilemma from the client side. Their research indicates that companies need to not only consider all of the ‘touchpoints’ their customers are experiencing, but the overall ‘journey’. “Most customers weren’t fed up with any one phone call, field visit, or other interaction—in fact, they didn’t much care about those singular touchpoints. What reduced satisfaction was something few companies manage—cumulative experiences across multiple touchpoints and in multiple channels over time.” The article continues providing examples like this and offering solutions — well worth reading. ~JC


  2. kkprice says:

    Great post! Change is difficult and often unwanted. We witness it everyday with certain brands that refuse to change or embrace the true customer experience. Just think of the lousy bank, telecommunications, or cable companies that have terrible customer service. What if companies like these would embrace service principles like Zappos? Oh my, how awesome that would be!

    Liked by 1 person

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