Value of Customer Satisfaction

Test Your Institution. Learn more about the value of customer satisfaction to your specific institution by using The Cost of Poor Service Calculator. The calculator employs well-established industry formulas pertaining to the cost of losing and replacing customers. Punch in a few numbers and find out how much money your institution could be saving every year - just by improving customer satisfaction.

Achieving a high level of customer satisfaction has never been more important - or more valuable - to financial institutions than it is today.

  • Financial services are increasingly viewed as a commodity, something that can be purchased from any source with little difference in quality.
  • Consumers are becoming increasingly sophisticated and are beginning to understand their long-term value to financial institutions.
  • The convenience of on-line transactions has fed the consumer's desire for quality service at every contact point.

Key Facts. Common sense tells you to take good care of your customers; consumer research tells you why.

  • A 5% increase in customer satisfaction can increase profitability from 25% to 125%. Harvard Business Review
  • If you can improve your level of customer retention by just 5%, and sustain that improvement over five years, you can improve operating earnings by as much as 100%. American Banker
  • Service quality is not a cost but an investment in a customer who generates more profit than the margin on a one-time sale. Bank Marketing
  • Businesses typically spend five times as much to gain a new customer as they do retaining or cross-selling an existing one. Technical Assistance Research Program
  • Businesses spend an average of only 5% of their service time preventing or eliminating problems and 95% of their service time addressing them. Technical Assistance Research Program

Customer Service Profiles, LLC is proud to be affiliated with
McCarthy Group, LLC who provides investment capital and intellectual resources
for businesses with attractive growth prospects and proven management.
McCarthy Group manages nearly $1 billion