Consumers Will Spend More for Good Customer Service?But Is Your ...

By Rieva Lesonsky

There?s good and bad news for small businesses in the most recent American Express Global Customer Service Monitor survey. First, the good news: 70 percent of Americans say they would to spend more money?an average of 13 percent more?with companies that provide excellent customer service. That?s a big increase from last year, when 58 percent said they would spend an average of 9 percent more with companies that provide outstanding service.

Now, the bad news: Americans want better service, but they don?t think they?re getting it. Sixty percent say businesses haven?t improved their customer service, up from 55 percent last year. Of that 60 percent, 26 percent think companies are paying less attention to service, not more. Overall, 22 percent of Americans say companies take them for granted. And 78 percent say they have canceled a transaction or given up on a purchase because of receiving bad service.

For small businesses, though, there?s even more positive news in the survey: 81 percent of respondents say small businesses put more emphasis on good service than larger ones do. And 59 percent say they are willing to try a new brand or company if it means better customer service.

That means there?s opportunity for your business to fill the customer service gap. So just what do Americans consider to be good service? Well, it?s not automated voice response systems. Just 20 percent of respondents prefer that method of interacting with a business. Sixty-seven percent are fine with going through a company website. But if a problem arises, 90 percent say they want to deal with a live person on the phone. And 75 percent prefer dealing with live people on the phone even if there?s not a problem.

Customers don?t keep quiet about the service they experience from your business, either. Respondents said they tell an average of nine people about good customer service experiences, and an average of 16 people about each bad experience. With numbers like that, your customer service affects far more than just the individual customer?it can have wide-ranging effects on your business?s reputation.

How does your business measure up? Take time to think about how your customer service can improve?and then take steps to improve it. Your business?s continued success depends on it.

Image by Flickr user comedy_nose (Creative Commons)

Source: http://www.ethiopianreview.com/index/20111/408595

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