Other Side of the Coin: Consumers Spend More with Great Service Providers

Posted: September 15, 2010 in General Business Fodder, Great Customer Service
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To follow up on my earlier post, where I discussed how business are throwing money away by losing customers due to bad service, a recent study by American Express indicates that Americans will spend, on average, 9% more money with a vendor who provides top-notch service.

So again, in a troubled economy where businesses complain about declining revenues, not only do they give away money to their competitors with their lousy service, they are also leaving money on the table by not making the extra effort to provide great service. ¬†This is stupid, businesspeople. ¬†Really stupid. ¬†With a little effort, and a little training, businesses could be pulling in an extra 9%. ¬†In this economy, you don’t think that counts for something? ¬†Let me tell you, it counts for a LOT!

But nooooooo… it’s easier for business to talk about customer service than to actually do the little things necessary to ensure a quality service experience on every transaction. ¬†This is not because providing great service is so difficult. ¬†It’s because, for whatever reason, businesses ignore multitudes of studies that say demonstrate the benefits of excellent service. ¬†But they would rather cheap it out, hiring inexperienced people at low wages, calling it “controlling costs.” ¬†Or farm out their contact center work to a foreign country, where people whose English is not their best language, attempt to imitate good service providers. ¬†Yes, it certainly is cheaper than paying articulate, knowledgeable people to serve customers. ¬†But the money you save is doesn’t make up for the money you lose when customers walk. ¬†It may not even make up for the 9% extra revenue you are leaving on the table.

Come on, businesses… you’re smarter than this. ¬†Aren’t you? ¬†(rhetorical question) ¬†Go for the gold! ¬†Take care of your customers, and they will give you more money. ¬†Just try it! ¬†It has been proven to work!


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