New York--A majority of Americans report that quality customer
service is more important to them in today's economic environment (61
percent) and will spend an average of 9-percent more when they believe a
company provides excellent service. However, in a challenging economy
where growth is harder to achieve, many businesses are missing out on
this opportunity.
Although only a little more than a third of
Americans (37 percent) believe that companies have increased their focus
on providing quality service:
· 27 percent feel businesses have not
changed their attitude toward customer service.
· 28 percent say that
companies are now paying less attention to good service.
These
findings were released in the American Express Global Customer Service Barometer, a
survey conducted in the U.S. and eleven other countries exploring
attitudes and preferences toward customer service.
"Customers
want and expect superior service," said Jim Bush, Executive Vice
President, World Service. "Especially in this tight economic
environment, consumers are focused on getting good value for their
money. Many consumers say companies haven't done enough to improve their
approach to service in this economy, and yet it's clear they're willing
to spend more with those that deliver excellent service - suggesting
substantial growth opportunities for businesses that get customer
service right. It's important to see customer service as an investment,
not a cost."
Almost all agree service is important, but one in
five feel they're taken for granted. Not surprisingly, nine in ten
Americans (91 percent) consider the level of customer service important
when deciding to do business with a company. But only one-quarter (24
percent) believe companies value their business and will go the extra
mile to keep it. Most feel businesses can do more to retain their
loyalty:
48 percent feel companies are helpful but don't do anything
extra to keep their business. Worse, 21 percent believe that companies
take their business for granted.
Good news travels fast
-- until you go online
Importantly, customers are
spreading the word willingly and widely when they experience good
service. In fact, contrary to conventional wisdom, customers are more
inclined to talk about a positive experience than complain about a
negative one. Three-quarters (75 percent) are very likely to speak
positively about a company after a good service experience in contrast
with 59 percent who are very likely to speak negatively about a company
after poor service.
Good service experiences also carry more
weight than bad ones when Americans make future spending decisions.
Consumers are far more likely to give a company repeat business after a
good service experience (81 percent) than they are to never do business
with a company again after a poor experience (52 percent).
In
fact, consumers say the three most influential factors when deciding
which companies they do business with include personal experience (98
percent), a company's reputation or brand (92 percent), and
recommendations from friends and family (88 percent).
Nearly
half (48 percent) of consumers report always or often using an online
posting or blog to get others' opinions about a company's customer
service reputation. But when consumers go online they're looking for
"watch outs," saying they put greater credence in negative reviews on
blogs and social networking sites than on positive ones (57 percent and
48 percent, respectively).
"The Internet has made service
quality more transparent than ever before," Mr. Bush said. "In the
online space, positive recommendations are important, but people often
give more weight to the negative. Because consumers can broadcast their
views so widely online, each and every service interaction a company
has with its customers becomes even more crucial. Developing
relationships with customers, listening to them, anticipating their
needs, and resolving any issues quickly and courteously can help make
the difference."
Two strikes and you're out. Or is it
one?
A negative service experience is an important factor
for most Americans: 81 percent have decided never to do business with a
company again because of poor customer service in the past. When asked
how many poor experiences they allow, half of all Americans (50 percent)
reported it takes two poor service experiences before they stop doing
business with a company.
Importantly, consumers are far more
forgiving if a company has earned their trust over time. Almost
nine-in-ten consumers (86 percent) report they're willing to give a
company a second chance after a bad experience if they've historically
experienced great customer service with that company.
But
companies who get it wrong should realize it's at a cost.
Half of
consumers (52 percent) expect something in return after a poor customer
service experience, beyond resolving the problem.
Most consumers (70
percent) want an apology or some form of reimbursement.
Service
leaders recognize the value
Companies with reputations for
great customer service take different approaches, however they share
the common understanding that investing in service truly pays off.
"While
customers appreciate the plush surroundings of our five-star hotels, 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. "Trends may change, but a focus on service
excellence is timeless."
"What many people refer to as 'great
service', we call hospitality," says Susan Reilly Salgado, managing
director of Danny Meyer's learning business, Hospitality Quotient.
"Service is all about the technical delivery of the product, while
hospitality is about how guests feel during that transaction.
Hospitality happens when guests believe you are on their side. For
people to rave about their experience and become repeat customers, you
need to have both - but what surprises customers and makes them feel
genuinely cared for is the hospitality. And that's the reason people
love to talk about those fantastic experiences - because they surpass
expectations."
Service is valued everywhere, but views
vary globally
Similar to their U.S. counterparts, a
majority of consumers in all but one country surveyed feel that customer
service has become more important in the current economy: 
In
most countries where the highest percentage of consumers feel that
service is more important today, there is a corresponding belief that
companies have increased their focus on providing good customer service:
65
percent of Indian, 49 percent of Japanese and 47 percent of Mexican
consumers agree with this statement.
However, some consumers
are not feeling the love. In Australia (71 percent), Germany (66
percent), and Canada and Italy (65-percent each), consumers say they
feel companies haven't increased their focus on service or are paying
less attention to it.
This can spell trouble and lost
opportunity for companies, given that consumers around the world
consistently express a willingness to spend more with companies that
provide excellent service:
 |
| Average percentage more that consumers are willing to spend |
The
American Express Global Customer Service Barometer research was
completed online among a random sample of 1,000 U.S. consumers aged 18+.
Interviewing was conducted by Echo Research between April 13 and April
20, 2010. Overall, the results have a margin of error of +/- 3.1% at
the 95 percent level of confidence. The same survey methodology was
used in Canada, Mexico, France, Germany, Italy, the U.K., Spain, the
Netherlands, Australia, India and Japan.
