53% UK consumers spend more if companies have excellent customer service; John Lewis 'best'
Organisations that invest in customer service excellence are likely to receive additional purchases from over half of customers, our recent online poll on behalf of workforce performance management specialists Cognito has found.
Moreover, the poll of 2,084 UK adults also showed that almost three fifths of consumers will pay a premium for products or services where they believe they are likely to receive good service*.
- Organisations that invest in customer service excellence are likely to receive additional purchases from 53%
- 59% of consumers will pay a premium for products or services if they believe they are likely to receive good service – 44% would pay up to 9% more
- On average respondents were willing to pay a 2.9% premium for good service
Customers were also asked about which experiences of customer service they tend to share with others.
- 82% of consumers would share a bad customer service experience
- Compared to 55% who would share a good experience
Respondents were also asked to name the brand they believed is best when it came to customer service.
- John Lewis ranked first for customer service (9%)
- While Marks & Spencer and Amazon ranked second and third respectively (both 5%)
- Tesco (4%), Asda and Virgin (both 3%) also appeared in the top ten ranking brands
"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 survey follows the launch of the Value of Service calculator, a new financial tool from Cognito that provides organisations with the typical increase in revenue, reduction in cost and impact on profit service excellence can have. See the calculation tool here