Service Pays Even In a Poor Economy

I came across this recent study done by the Strativity Group and just had to pass along this critical information. 

If service has been pushed to the back burner because in this economy you feel there are more important issues, here's some important information you should consider.  Strativity Group surveyed nearly two thousand people as part of their 2009 Customer Experience Consumer Study, and released these  results:

        * Unhappy customers are ten times more likely to stop doing business with a firm within the next twelve months, in comparison to loyal customers.  

        * More than half the unhappy customers say they will only continue to do business with a firm delivering a poor experience if they receive more than a five percent discount in comparison to the competition's price.  Conversely, 40% of happy customers are willing to pay a 10% premium in order to continue doing business with the firm to which they are loyal.

        * More than 30% of all consumers surveyed are willing to increase their spending by 25% or more if their expectations are exceeded, and 70% of the consumers surveyed indicate a willingness to increase their spending 10% or more with businesses who exceed expectations. 

Even in this economy, your customers consider service to be important, and ultimately vote, not with a survey, but with their wallets and their recommendations.  Great service gives you a competitive advantage, allows you to charge a premium and creates advocates - the cheapest form of advertising around.  I hope you enjoyed your summer; now ensure the experience of your clients is a great one. 

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Posted by Susan Hoekstra at 9/4/2009 9:02 AM
Categories: Service Statistics
Tags: Good Customer Service Bad Service Susan Hoekstra customer service expert customer service statistics competion consulting services Customer service The Service Journey client experience Competitive Advantage
 

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    Everyone these days wants and says they're service-oriented.
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  • 9/10/2009 1:20 PM Charlie Lellman wrote:
    What a revealing survey - I imagine stuff like this gives management types a lot of sleepless nights!
    I know that this kind of consumer behavior is relentlessly tracked regardless of the state of the economy, and the results are probably similar in good times - although the bad times we are in exaggerate the behavior of consumers. Time for companies to invest heavily in their customer service?
    Reply to this
    1. 9/10/2009 1:50 PM Susan Hoekstra wrote:
      Hi Charlie ... Thank you and & agree.  It's definitely not a time to cut costs on providing a great client experience. During good times, great service can help make firms more profitable.  During bad economic times great service can be what helps a firm survive.   
      ~ Susan
      Reply to this
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