Strong correlation between increased satisfaction and increased profits

There is a strong correlation between increased customer satisfaction and increased profits for commercial website. It is simply because:

  1. Customers can find products and services more easily and are thus more likely to return in the future
  2. Support cost are reduced because of a lower number of people calling to ask questions, emails, etc to help desk, as well as a lower number of product returns.

Here is a case study taken from a book called “The Design of Sites.” Several years ago, IBM found that its website was not working well. Quick analysis revealed that search feature was the most used function. However, the website was so confusing that IBM’s customers could not figure out how to find what they wanted. Then they discovered that the second most visited page was the help page. Because the search function didn’t work properly, people went to help page to find assistance.

Paying close attention to customer needs, IBM redesigned the website from ground up to be more consistent in its navigation.

A week after launching the redesigned site, customers’ reliance on the search and help features dropped dramatically and online sales rose 400%.

Commercial websites that are not relevant, fast, trustworthy, satisfying, and easy to use will have a hard attracting new customers and retaining existing customers, especially if competitors are only a click away.

Customer talk

Customer talk…
to their associates, friends and neighbors.
Here is the number of people they will talk to based
upon how well you handle their complaint.

3 if you do a good job
10 if you do a great job
25 if you do a bad job
50 if you do a real bad job

And you will be on the 6:00 PM news
If you do a horrible job.

How are they talking about you?