File this under the “duh, how much more proof do you need” category. According to another study — this one from Satmetrix — one in five US consumers says a bad customer experience leads him/her to switch brands.

No shit. Really?

“These findings suggest that companies can improve customer retention and acquisition by reallocating a portion of their advertising budget toward programs that improve customer experience and increase positive word of mouth, according to the San Mateo, Calif.-based company.”

 Oh, it gets better:

“Of the more than 22,000 U.S. consumers surveyed nationwide, the 2011 Net Promoter Industry Benchmarks study found that bad customer experience prompted 22% of consumers to stop doing business with a provider during the second half of 2010. The study also found that word-of-mouth endorsements from friends or colleagues are the most trusted form of information when purchasing products or services, far more trusted than advertising. A majority of consumers reported that they had actively shared their customer experiences with others. Businesses are expected to spend $214.3 billion on advertising in 2011, according to SNL Kagan. But only 4% of Americans trust advertising the most as an information source when choosing products or services.”

$214.3 BILLION for a potential 4% return.


Read the whole report here, folks.

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