Good customer service makes life better for your customers—but it also makes your profits better. Need confirmation of that claim? Check out the results from the latest Global Customer Service Barometer by American Express.
Customers today don’t feel very positive about customer service in general. Maybe that’s why those who do get good service really appreciate it. Nearly three-fourths (74 percent) of consumers surveyed say they have spent more with a company because they had a history of positive customer service experiences with that business. On average, customers are willing to spend 14 percent more with companies that provide good service.
Good customer service not only boosts your sales with current customers, it’s a major factor in landing new customers. More than four in 10 (42 percent) say a recommendation from a friend or family member is likely to get them to do business with a new company. What’s more, 34 percent say such a recommendation is even more influential than sales or promotions.
On the flip side, last year six out of 10 consumers say they had an experience where they planned to buy something from a business, but changed their minds after a poor customer service experience. And 37 percent of respondents say they only give a business one chance to mess up before they switch to the competition.
While nearly half of consumers tell people about good customer service—and they tell an average of eight people—a whopping 95 percent of shoppers tell others about bad customer service experiences. Even worse, customers who have negative experiences tell twice as many people as those who have positive experiences.
So what constitutes good customer service? It’s pretty easy to do: To exceed U.S. consumers’ expectations, simply deliver the value you promise at the right price. While that’s the most important factor in customer service, consumers also say “ease of doing business” and “personalized service” factor in to good customer service.
When it comes to interaction with customer service reps, consumers overwhelmingly agree that good service means being able to provide satisfactory answers to their questions (86 percent) or connect them with someone who can (78 percent).
Beyond these basics, customers value efficiency (they want their transactions handled quickly and competently) and empowerment (they want employees who are able to make decisions on their own).