It's not always about price...

Friday, October 22, 2010 by Betsy Miller
When it comes to ecommerce (and particularly big ticket retail) the impact of stellar customer service should not be underestimated. A new study from Harris Interactive highlights the fact that although low prices can certainly lure a customer in, a great customer service experience will ultimately make the lasting impact.  What’s more, 85% of the consumers surveyed by Harris said that they would be willing to pay more for a service or product if it meant that they would receive better customer service. Specifically, 55% of the people surveyed said that they would be willing to pay an additional 10%, and 10% indicated that they would pay 25% more.

But beyond just price, a clear motivation factor for multichannel retailers to ramp up their customer service programs is the fact that bad customer service can have negative consequences beyond just that one dissatisfied customer. The Harris study found that 79% of consumers who have had a negative customer service experience said that they have told other people about it. Additionally, 66% of those consumers said they wanted to discourage other people from doing business with that retailer. And with Twitter, Facebook and other social communities acting as a regular avenue for shoppers to vent their customer service frustrations, that influence will no doubt very quickly spread beyond just the customer’s immediate circle of friends.

For the big ticket retail category, where the purchase cycle is longer and results in more opportunities for the customer to interact with your staff, the payoff of good customer service as part of a robust multichannel retail strategy can be significant.


Copyright 2010, Official Blog of Blueport Commerce



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