Customer service can shift brand loyalty: Survey

The quality of a company's customer service plays a key role in building its brand image and even helps the firm win new customers, a survey conducted by American Express has found. Why service matters?

The quality of a company's customer service plays a key role in building its brand image and even helps the firm win new customers, a survey conducted by American Express has found.

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The survey - 2011 Global Customer Service Barometer - says more than half of those surveyed (52%) would switch over to a new brand or company for want of a good customer service experience.

Customer services in this case refer to various service provisions to a consumer before, during and after a transaction.

The survey, based on a random sample of 1,002 consumers, mapped consumer behaviour on several parameters and has underlined the importance of customer services for an organisation.

The survey found that around 80% of the consumers did not complete a business transaction or did not make an intended purchase because of poor customer service.

Among those surveyed it was also found that around 90% consumers were willing to spend more with a company whose customer service could be rated excellent.

"On an average, they are willing to spend 22% more," the survey said.

In 2010, only 76% consumers were willing to pay more - around 11% on average - for better customer services.