Service Beats Low Prices
Customer service is more important than low prices when it comes to luring and keeping loyal customers, according to a new survey by Accenture.
More than two thirds of over 4,000 consumers surveyed worldwide said they’ve switched businesses as the result of a poor customer service experience, the New York-based management consulting firm reported this week. By contrast, just over half said lower prices lured them elsewhere.
The difference was even more dramatic among American consumers, with nearly 75 percent saying they’ve switched service providers due to poor service, compared to 47 percent who were drawn by lower prices.
The survey also found that customer loyalty continues to erode as consumer expectations rise.
Most respondents said they demand more from businesses than they did a year ago, and many said they will demand even more in the years ahead. Twenty percent of respondents said they would immediately leave a business as the result of poor service, up seven percent from a similar survey last year, the firm reported.
Photo by thadz.
Awangku Yusli on November 21st, 2008 12:33 am
Yes, I totally agree. It is more important to give satisfaction to customers as satisfied ones are more likely to come back for more businesses. Dissatisfied ones will just buy that one time and never return.
cassy on November 21st, 2008 8:45 am
Good service makes good prophet.If we give a nice service to our costumer they will become your regular costumer coz, they will be going back to you, but if we have a poor service all of them will not planning of going back to your establishment.
Jaclyn on November 21st, 2008 11:41 am
good customer service is a very good thing, but i wouldn’t exactly say that that is all people base their shopping locations on. i go to krogers for groceries down the road from my house, everyone in that store is rude and short with you, but in today’s economy and with needing to save on money and gas…i go there still!
cassy on November 22nd, 2008 2:55 am
Well, quiet true Jaclyn but for me, I got easily hurt if a sales crew is being rude. I still prefer to those who are very accomodating and really give good services stores. And as the survey said customer service is still leading than the lower cost. Good service really give good profit.
Praveen - Business knowledge blogger on November 24th, 2008 11:59 am
Yes, good customer service is the only one which helps the business to grow in the long term. Lower prices will help you to draw the crowd only for little time, it is the service that makes different. I have written a nice article on improving the customer service on my blog. Please take a look at it.
http://www.bizknowledge.net
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