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Consumer Trends

Good service may raise profits in tough economic times

In the current economic climate, 61 percent of Americans see service as especially important and they are willing to spend 9 percent more when a company provides outstanding service, according to the American Express Global Customer Service Barometer. Similar results were found worldwide. Indian and Japanese consumers are ready to pay 11 percent and 10 percent more respectively for good service. Here are more findings from the international survey:

  • Less than a quarter of consumers say companies are currently doing more to improve service levels and 21 percent say companies take their business for granted.
  • News of good restaurant experiences travels faster than complaints. In the survey, 75 percent of consumers were likely to speak about positive experiences while only 59 percent would talk about bad ones.
  • Internet sources are influential and almost half of those surveyed use online postings to learn about a company’s service history. But consumers are more skeptical of online information. Only 48 percent were likely to believe a positive review, compared to 57 percent who would believe a negative one.
  • Poor experiences will prevent 81 percent of Americans from doing business with a company again. But 86 percent of consumers are also likely to give the company a second chance if they have experienced great service with the company in the past.
  • Consumers expect to be compensated for bad service. An apology or some form of reimbursement is desired by 70 percent of consumers.

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