Quantifying Superior Customer Service
It is generally agreed that a company who provides excellent customer service will be rewarded with repeat sales, but the question is by how much?
Studies reveal that the reward is high. Based on recent polling by a major US based credit card company over 7 in 10 consumers are willing to spend as much as 13% more with a company who has provided them with superior service. Incredibly, some consumers would be willing to spend as much as 22% more! Further, this same consumer polling survey conducted by American Express indicated as many as 3 in 5 would try a new brand if it meant a better service driven experience.
The value of this survey was such to be very good news for small businesses. Four out of five respondents believe smaller organizations actually do place a greater emphasis on service than large organizations.
A noticeable downside trend in the survey was the perception that a majority of consumers, 6 in 10, do not believe businesses are fully committed to offering quality service and a full 22% believe their business is taken for granted. This consumer perception and often time reality can be very costly. Almost 80% said that because of poor service they did not complete their transaction and further were more likely to spread the news of the offending companies missed service opportunity. It is not surprising then that almost two thirds of dissatisfied consumers will take their business to a competitor or simply do not buy from anyone; they forgo the transaction entirely.
So, what is the take-away from this data? Service matters. Be aware that consumers dislike having to repeat themselves, dislike having to find associates to assist them, dislike dealing with an associate who is unable to answer their questions and dislike associates who appear dis-interested.
Make the consumer happy! Personalize the experience, educate staff to anticipate and know answers to common questions asked, hire pleasant associates willing to learn, be proactive without being pushy by anticipating opportunity to assist a customer. It’s really not that difficult.