ROI: Advertising vs. Customer Service

ROI on Advertising vs. Customer Service?

Now is the time to shatter the myth that advertising delivers a higher ROI than customer service.

This is the time of year every department in every company is fighting for an increase in their budget. Determining what they are allowed to spend for 2017, especially the budgets of advertising versus customer service. The only way to win the battle is to prove which budget will produce the company a better ROI.

In 2016, the fact that this is even still a debate is a sign of old paradigm thinking by too many senior executives. The shortsighted obsession of constantly bringing new customers/traffic to your business is significantly more expensive than building an incredible customer experience.

**5 Seats left at our upcoming CX Journey Mapping class

In a Social Times article titled Can Customer Service Deliver a Higher ROI than Marketing?, Tom Eggemeier, EVP Global Sales at Genesys, recently shared that global budget spends on marketing and advertising was

$500 billion a year compared to $9 billion spent on customer service. Compare that to the % your company spends on marketing and advertising versus customer service

Are you Penalizing Brand Loyalty?


Are you constantly offering incentives that are for “New Customers Only”? What about rewarding the customers that have been loyal to your business for years, that do business with you regularly, no questions asked, and refer others? It is a fact that:
  • Repeat customers spend more $$$ than new customers.
  • Repeat customers give higher satisfaction scores.
  • Repeat customers refer more than new customers.
  • You need five new customers to produce as much as one repeat customer.
In Adobe’s report titled The ROI from Marketing to Existing Online Customers, it was reported:
  • A 5% increase in customer satisfaction can increase a company’s profitability by 75%.
  • 80% of your company’s future revenue will come from just 20% of your existing customer base.
What if we Reversed the Spending on Advertising vs. Customer Service?
Companies spend millions creating and advertising their brands, yet the customer’s experience is what drives customer perception. If you take really good care of your existing clients, they will generate more new customers than any kind of advertising campaign ever could.

Only 5 Spots Left for the 2017 Customer eXperience Executive Academy


Are you your company’s next CXO? Watch this short video on how the Customer eXperience Executive Academy can help you reach your personal and professional goals. The CXE course is a 12-month part-time program. Training will occur in a classroom and virtually through scheduled calls and webinars. The next class starts January 2017. Check out the 2017 schedule and register today

before it sells out.


About The Author

John DiJulius

John R. DiJulius is a best-selling author, consultant, keynote speaker and President of The DiJulius Group, the leading Customer experience consulting firm in the nation. He blogs on Customer experience trends and best practices.

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