BackCustomer service impacts consumer spending: Survey
Customers remained moderately dissatisfied with their services this year as opposed to previous years
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New Delhi: Customer service continues to drive choices of Indian consumers, many of whom gladly shell out more for better service, a global survey conducted by financial services company American Express found.
The Customer Global Service Barometer 2014 conducted across 1,000 individuals indicated that Indian consumers were willing to pay more for brands that match their level of service. More than three out of four (78%) consumers said they have spent more with a company because of a history of positive customer service experiences, higher than what they spent in 2012 (74% in 2012 vs. 80% in 2011).
Nearly nine out of 10 (86%) of consumers said they were willing to spend more with a company they believe provides better customer service, similar to 2012 (87%) and significantly lower than 2011 (90%).
Customers remained moderately dissatisfied with their services this year as opposed to previous years.
Greater than six in ten (61%) believe that companies meet their customer service expectations, down slightly from 2012 (65%) but the same as 2011 (61%).
Poor service leaves a deep impression on many consumers, who are willing to share their negative experiences with more people.
When it comes to poor customer service experiences, nearly nine in 10 (86%) consumers talk about them, with 50% reporting that they talk about these experiences all of the time. On average, consumers tell 41 people about their good experiences (44 in 2012 and 32 in 2011), and 48 people about their bad experiences (47 in 2012; 35 in 2011).
Nearly all consumers talk about their good customer service experiences, at least some of the time (98%).
Consequently, consumers are willing to shift business loyalties if poor customer service continues to persist.
In the past year, seven out of 10 (71%) consumers intended to conduct a business transaction or make a purchase, but decided against it due to poor service experienced earlier – the same as in 2012 (71%).
Social media is gaining more popularity among consumers seeking a customer service response, with 71% consumers utilizing social media to get a customer service response, up significantly from 54% in 2012.
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