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The value of service

A few facts worth noting

Studies conducted by TARP, a highly respected customer service research firm, reveal the following: 

The good

• Customers are willing to pay more in exchange for better service
• Satisfied customers will tell an average of five people about their positive experience
95% of unhappy customers will do business with you again if you resolve their issue immediately 

The bad

• A typical business hears from about 10% of its unsatisfied customers
90% won’t bother to tell you the problem
• It costs five times more money to get a new customer than to keep an existing one
• An average company loses between 15–25% of its customers annually 

The ugly

• It takes 10 positive service experiences to make up for one negative service experience
• Dissatisfied customers tell an average of 10 people about their bad service experience
• 70% of customers who switch to a competitor do so because of poor service. 

Encourage customer feedback

Unhappy customers, unfortunately, often voice their dissatisfaction by simply choosing another company. You may never know what cost you their future business (and the potential business of family, friends, and colleagues). Consequently, it is very important to make it easy for customers to provide feedback. Following are some options: 

Dedicated phone number. Devote a telephone number to customer feedback.  Set up a system that allows you to receive emailed text of messages. 

Comment cards.  Include a business size comment “card” with every order. The card will include the website address to an online survey. As an incentive, offer a drawing to encourage feedback. 

Website link to online feedback form. Create an online survey and put a link on your website.


Michael Rosman has been in the catering and restaurant industry for over 30 years in the Boston area, where he built a $1.8 million per year corporate drop-off catering operation. He’s the founder of The Corporate Caterer, a resource membership website, lead generation and private coaching company. Whether you are just starting out, are a leader in your marketplace, or somewhere in between, has an incredible wealth of insight and resources to help you begin or grow this division of your business. To learn more, visit the or call Michael directly at 781.641.3303.

Michael Rosman

Michael Rosman

Owner/Founder, The Corporate Caterer, Boston, MA

Michael Rosman is the founder of, a consulting, coaching and lead generation company for businesses that aspire to take their corporate catering business to the next level or start a new division. He is also a Senior Consultant with He can be reached at [email protected].