John DiJulius | Customer Experience Blog

The Secret Weapon for driving revenue | Price or Experience Wars | Full Disclosure

“Changing the World by Creating a Customer Service Revolution…

– Companies spend millions creating and advertising their brands, yet the customer’s experience is what drives customer perception. A recent study reaffirmed what every customer knows, but too many leaders continue to bury their head in the sand and ignore what research shows: that a great experience not only influences where they chose to buy, but also…

  • 82% of consumers have stopped doing business with a company as a result of a negative experience
  • 55% became the customer of a company because of their reputation for great customer service
  • 40% began purchasing from a competitive brand simply because of their reputation for great customer service
  • 85% of consumers said they would be willing to pay more over the standard price in order to ensure a superior customer experience

Are you competing on price or the experience?  Consumers aren’t only demonstrating power with their wallets, but they are influencing those around them as well. Whether consumers have a positive or negative experience, their friends, family, colleagues and networks are sure to hear about it; and what they are saying carries weight. The top three factors why consumers recommend a company:

  • 55% because of its customer service
  • 49% because of the product
  • 42% because of price

Read the entire report Customer Experience Report North America 2010 – RightNow

Full Disclosure – I have been getting more and more impatient with businesses’ lack of respect for my time. I hate to be kept waiting. Recently I went to a local diner with my family for Sunday breakfast, and upon arrival the hostess warned us saying, “I apologize. We are so busy today, our kitchen is really backed up. It may take a while before you get served.”  We all responded with something along the lines of, “We are in no rush.”  The waitress eventually got us our drinks, our order and kept stopping by during our wait to refresh our drinks and apologize for the long wait. Each time we kept reassuring her that we understood. The food finally arrived and we left happy.

What was funny was afterward, when I thought about the length of time between order and delivery of the food, it was significant. However, with her being upfront and apologetic, none of us were even the slightest bit upset. It is like when you see an employee nametag that says “In Training” underneath the name. You automatically feel for this person, are more patient, understanding, and sympathetic. You want to help them out so they do not feel so overwhelmed.  Disclosing the inevitable service defect upfront is a powerful tool to getting your customers to be more understanding and patient. It is when they are not told about the delay or why or how much longer that people feel taken advantage of and are less forgiving.

Exercise of the week – A few weeks ago I shared the FORD exercise, which measures your employees’ customer intelligence.  Another great exercise is the FORD exercise for your management team, asking them to fill in the following FORD on each of their employees. How well do they know the people that report to them on a daily basis?   This will demonstrate how well they retain employee intelligence:

  • Family
  • Occupation
  • Recreation
  • Dreams

Quote of the week


“We are not for everyone, nor do we want to be. We are for the 1% who want to

emerge as the best of the best and are not afraid to work hard and challenge themselves

 to see how much greatness they actually have inside.”

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~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. Learn more about The DiJulius Group or The Secret Service Summit, America’s #1 Customer Service Conference.

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