How much more are your customers willing to pay for great customer service?

Posted by Mark Price on May 16, 2011

0 comments | 1177 reads

In a recent American Express survey, close to 70% of respondents said they would pay an average of 13% more for excellent customer service. That result is a significant increase from last year, as customers become more frustrated by customer service from the companies they patronize.

At the same time, over 85% of respondents believe that American companies are not increasing focus on customer service.

Who will be the first in your industry to take that extra 13% in revenue and all those customers who are so angry?

Now you have the high level business case to drive discussions.

Amplify’d from www.livescience.com

Americans Mouth Off About Poor Customer Service

In the survey, seven out of ten respondents said they’re willing to spend an average of 13 percent more with businesses that they feel provide excellent customer service. That number is up substantially from last year, when just 58 percent said they were willing to spend 9 percent more for great service.

Despite consumer’s clear desire for better customer service, most feel businesses aren’t placing a high enough priority on it. According to the survey, 60 percent believe businesses haven’t increased their focus on providing good customer service, with 26 percent thinking businesses are paying less attention to it.

Bad customer service gets many Americans’ blood boiling, according to a new survey out this week — with more than half saying they have lost their temper and one in five men firing off a few choice expletives during frustrating service situations.

Read more at www.livescience.com

See this Amp at http://amplify.com/u/a132wh

Republished with author's permission from original post by Mark Price.

Mark Price

Mark Price is the managing partner and founder of M Squared Group, a consulting firm that specializes in customer analysis and relationship marketing. He is responsible for leading client engagements, e-commerce and database marketing, and talent acquisition at M Squared Group. Mark is also a RetailWire Brain Trust Panelist, a blogger at “Cultivating Your Customers” and a monthly contributor to the blog of the Minnesota Chapter of the American Marketing Association.

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Laura Kucharczyk

May 17, 2011

Poor Customer Service

I think this is a great article that says how people feel about customer service, but when it comes right down to it, do they just bite the bullet and deal with poor service to get the better price?

I'm a buyer of convenience so I always look at how much of my time it will take to shop price. If I'm happy with the product and I believe the person that I'm dealing with is honest and forthright and I feel like I'm getting a fair market price 9 out of 10 times I will just buy it to save myself the aggravation of dealing with other providers.

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