Brits Will Pay More for Better Customer Service

Businesses should realise that consumers are willing to pay extra for good customer service in post-recession Britain.

Research by American Express revealed that businesses should improve customer service as they will enjoy a significant increase in their profits as 52 per cent of people said they would spend significantly more for an excellent consumer experience.

The study found that consumers would be willing to spend an average of seven per cent more on exceptional customer service, which could lead to billions of pounds being pumped into British businesses and the nation's economy.

Furthermore, 70 per cent of consumers said that a positive customer service experience would result in increased loyalty to a business and repeat custom.

Raymond Joabar, American Express' UK managing director, said: "Putting your customers at the heart of what you do is essential if you want to build trust, create brand loyalty and improve revenue."

While the benefits of looking after customers may appear to be obvious, many British consumers are unhappy with the levels of service that they currently receive.

The investigation discovered that a large number of people are dissatisfied with British businesses as 32 per cent thought that companies consistently fail to meet their expectations.

This disillusionment with customer service can have disastrous effects on a firm's reputation and most importantly their profits.

A bad reputation may result in some companies seeking out performance improvement consulting organisations in order to improve their effectiveness and image.

Mr Joabar pointed out that with the growing popularity of social networking sites such as Facebook and Twitter meant that it was easier for consumers to share their positive and negative experiences of customer service.

He said: "If they're happy with what they've received, they will broadcast the good news to millions of people across the world in seconds with one click of a mouse - but if they're dissatisfied, the consequences can be extremely damning."

Mr Joabar went onto say that modern customers heavily rely on peer reviews, blogs and online postings to inform their decisions on choosing a business as the research found that 50 per cent "always" or "often" do so.

The study also found that consumers are more likely to hear a positive experience compared to a negative one so it is important that businesses improve their customer service levels.

Mr Joabar has advised businesses to improve customer service by investing in the right training as it is an opportunity to strengthen relationships with consumers.


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