Britons will spend 7% more for excellent customer service
Better customer service could earn companies more than just brownie points, poll shows
Most Britons are prepared to spend more for excellent customer service, according to a new survey by American Express.
The research revealed that more than half (52%) of British consumers would pay more for good customer service and are willing to spend an extra 7% on average for the privilege. Over two thirds of consumers (70%) are also much more likely to give a company repeat custom after receiving good customer care.
But when it comes to poor customer service, Britons adopt a “two strikes and you’re out” approach, the survey of 1,000 UK adults found. More than four in 10 (44%) people said they would give a company an average of just two chances before taking their custom elsewhere.
Retrieving that custom is not impossible, but comes at a high price – beyond simply resolving the problem, more than three in five consumers (62%) expect something in return for poor customer service. Most would like an apology (80%), almost two-thirds expect a discount (62%) and more than half (55%) would like a free gift. But even those measures may not be enough for some with the vast majority of respondents (80%) claiming they have decided never to do business with a company again as a result of poor service.
The findings come from the American Express Global Customer Service Barometer, which was conducted in the UK and 11 other countries.
An international comparison of the findings showed that:
Britons are the least satisfied with the level of customer service they receive, with a third (32%) feeling companies fail to meet their expectations and only one in 10 (10%) believing that companies will go “the extra mile” for them – consumers in other countries were twice as likely to believe their companies “go the extra mile” with the corresponding figure rising to 24% in America, 20% in Germany, 25% in the Netherlands and 18% in Spain.
Indian consumers are prepared to spend the most for excellent customer service – an extra 11%. By comparison, Japanese consumers will spend 10% more, Americans 9%, Spanish 8%, and both Britons and Germans 7%.
Raymond Joabar, American Express’s UK Managing Director, said: “Britons want and expect excellent customer service and are willing to spend more for it even when budgets are tight. And delivering good service doesn’t just help businesses retain income; it could also help save them the cost of re-engaging disgruntled customers.
“Delivering perfect service, every time, is a challenge for any business, but it is one well worth striving to meet as customers will soon vote with their feet if they’re not satisfied with the level of care they receive. Just as happy customers will spread the word about a positive experience so, too, will the dissatisfied minority vent about a company – via Word of Mouth and increasingly the internet – when they experience a poor one. And bad memories tend to linger longer.”
He added: “Getting customer service right is not an option for business, it’s a must. Providing excellent customer service helps businesses to build and maintain trust with their customers. As Interbrand’s latest Global Brands Report[1] demonstrates, it is trust that is at the core of the world’s most successful brands.
“Excellent customer service is and has always been at the heart of everything American Express does. Far from a burden or an expense, it is something that has driven our business and our staff since the company was founded 160 years ago.”
