John DiJulius | Customer Experience Blog


CUSTOMER SERVICE IS AN INVESTMENT: SERVICE IS EVEN MORE IMPORTANT IN TOUGH ECONOMIC TIMES
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John DiJulius

John DiJulius - Presenter at The 2010 Secret Service Summit

Recently a survey was conducted in the US and eleven other countries exploring attitude and preferences customers have toward who they spend their money with based on the customer service they experience (read the entire article).

Here is a summary of the findings.

  • The majority say customer service is even more important to them in today’s economic environment
  • 61% will spend an average of 9% more when they believe a company provides excellent service
  • Only 37% feel businesses have increased their focus on providing better customer service
  • 27% feel businesses have not changed their attitude toward customer service
  • 28% say companies are now paying less attention to good service
  • 91% consider the level of customer service important when deciding to do business with a company
  • 81% of consumers are likely to give a company repeat business after a good experience
  • 52% will never do business again with a company after receiving a poor experience
  • The three most influential factors when deciding which companies they do business with include:
    • Personal experience (98%)
    • A company’s reputation (92%)
    • Recommendations from family & friends (88%)
  • Just about half of consumers use online postings/blogs to get others’ opinions about a company’s customer service reputation

World-Class Customer Service Companies recognize the value
“Customers expect superior customer service especially in this tight economic environment,” says Jim Bush, Executive VP, World Service at American Express. “Many customers say companies haven’t done enough to improve their approach to customer service, yet it’s clear they’re willing to spend more with those who deliver excellent service, suggesting substantial growth opportunities for businesses that get customer service right. It’s important to see service as an investment, not a cost.”

“We know that luxurious touches don’t matter to guests unless the service surpasses the setting,” said Simon Cooper, president, The Ritz-Carlton Hotel Company LLC. And Susan Reilly Salgado, managing director of Danny Meyer’s learning business, says, “Service is about the technical delivery of the product, while hospitality is about how guests feel during that transaction.”

How Service is Valued Globally
The report found that consumers from different countries feel that customer service has become more important to businesses in the current economy.

Consumers feel that companies have increased their focus on providing good customer service

Best

  • India 65%
  • Japan 49%
  • Mexico 47%

Worst

  • Australia 29%
  • Germany 34%
  • Canada 35%
  • Italy 35%

In summary, customer loyalty is the strongest asset a company can have in any economy.  There are significant growth opportunities for companies that want to compete on the experience they deliver versus getting caught up in the price wars.  There are fewer players competing in the experience arena. Customer Service must be viewed as an investment, not an expense!

~John DiJulius best-selling author, consultant, and keynote speaker, is the CVO of The DiJulius Group, the leading customer experience consulting firm in the nation. He blogs on customer experience trends and best practices. John DiJulius is the innovator of a methodology called Secret Service a customer service system which consistently enables organizations to deliver World-Class Customer Experiences. Find out more about The DiJulius Group or The Secret Service Summit, the #1 National Customer Service Conference.

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