Some might find statistics to be boring. Yet sometimes they tell a story, one that is so compelling, that everyone in an organization, from the CEO to the newest employee, must embrace. And, I believe that is the case with the following customer service statistics. Here are some of the latest stats and facts:
According to the latest (May 2011) American Express Global
Customer Service barometer…
1. Stat: In a positive economy, 70% of Americans are willing to spend an average of 13% more with companies they believe provide excellent customer service – up from 9% last year. My comment: Price is important, but becomes less important. While you have to remain somewhat competitive, you potentially have extra margin to work with. Delivering on customer expectations positively affects the bottom line.
2. Stat: 60% believe businesses have not increased their focus on providing good customer service. That number is up from 55% last year. Among this group 26% actually think companies are paying less attention to service. My comment: This is your opportunity to pull ahead of your competition. Use customer service as a differentiator. Make sure your customer knows what they are getting. Educate them to understand why they should be doing business with you.
3. Stat: 78% of consumers have bailed on a transaction or not made an intended purchase because of poor customer service. My comment: Bad customer service can kill a company. Everyone must be on board and aligned. The customer must experience a consistent level of service from anyone he/she deals with.
4. Stat: 59% will try a new brand or company for a better service experience. My comment: If you spin this as a positive statistic, then this is your chance to get business from your competition. If the above statistics are true, then there is good chance that some of your competitors may not be at the top of the customer service game. If that is the case, this is your opportunity!
There are many more statistics from this study (and others) that I can share. Here’s my point. These stats tell a story. It is social proof and we must share the fact and the meaning behind them with everyone we work with. They must understand the impact of customer service. Once they understand the “why,” you can start to focus on the “how to.” (There are more than 100 articles on my website that are focused on the “how to” of customer service.)
Suggestion: Take these stats and share them, one at a time, perhaps once a week, with your colleagues and employees. These stats prove there is opportunity. Have a discussion around them and come up with strategies to exploit them.
I’ll conclude with a quote from Jim Bush, Executive Vice President, World Service at American Express, who says:
“Getting service right is more than just a nice to do; it’s a must do. American consumers are willing to spend more with companies that provide outstanding service… Ultimately, great service can drive sales and customer loyalty.”