Profit from good customer service

In Customer Experience, Loyalty & CRM by emily

Businessman, Professional Occupation, Serious, customer service

If your customer service is good, customers will spend more with you and pay a premium for your goods, according to new research.

A poll from Cognito and YouGov found that just over half of consumers – 53% – will spend more with companies that have excellent customer service. It stands to reason: if a sales advisor can up-sell, suggest appropriate add-on products and convince the customer they're the most helpful in the event of a problem, consumers will spend more with that company. It's no surprise that John Lewis and Marks & Spencer topped the poll of most customer-friendly UK stores. Both are renowned in this field, particularly for no-quibble returns. Amazon is showing how it's done online.

The survey also found that the majority of consumers, 82%, will share a bad customer service experience. Any business that isn't on top of its game in terms of dealing with complaints is in trouble – social media makes these complaints more public.

The survey found that on average respondents are willing to pay a 2.9% premium for good service.

"Our YouGov survey further demonstrates that investment in customer service has a huge impact on an organisation's revenues and brand perception," said Jonathan Chevallier, Strategic Development Director at Cognito.

"Marketing investment without a real eye on delivery and front line service is wasted, with consumers deciding for themselves which brands they can rely on to deliver. Moreover, they are willing to spend more in a recession, which is something all companies can learn from."

The company behind the survey, Cognito, has launched a Value of Service calculator, so businesses can see how much money good customer service will make them.