Do Customers Really Pay More for Better Service?

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Do Customers Really Pay More for Better Service?

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In an increasingly competitive marketplace, businesses often wonder whether investing in top-notch customer service can truly increase their bottom line. The question remains: are customers really willing to pay more for better service? Let’s look at the facts and discover what research and industry insights reveal.

Fact #1 – Customers Will Pay More for Better Service

According to the American Express Customer Service Barometer, 68% of consumers say they would be willing to spend more with companies they believe offer excellent customer service. In fact, on average, customers are willing to pay up to 17% more to do business with companies that deliver better service and great experiences.

For instance, a 2019 study of the airline industry revealed that passengers are willing to pay a premium for carriers that boast higher customer satisfaction ratings. Those airlines that ranked higher in better service often collected higher ticket prices and still maintained loyal customer bases.

Fact #2 – If You Want to Compete, Your Business Must Provide Better Customer Service

Companies that prioritize customer service not only see increased customer loyalty but also attract new customers primarily through word of mouth. In today’s digital age, a single positive review or recommendation can lead to a significant influx of new customers.

The Harvard Business Review highlights that customers of businesses with better service models were not only more likely to continue purchasing from these companies, but were also more willing to recommend them to others.

Your Reputation Does Really Say It All

Fact #3 – Your Reputation Does Really Say It All

Online reviews, social media mentions, and other digital touchpoints make up your business’s online reputation. Today, 91% of people regularly or occasionally read online reviews, and 84% trust online reviews as much as personal recommendations.

For example, consider a plumbing or HVAC service that makes home or business service calls. A negative online review about tardiness or a job poorly done can significantly deter potential clients from hiring the service. On the other hand, positive testimonials about promptness, professionalism, and skill can lead to an increase in service calls and bookings.

Tip # 1 – Collect Customer Feedback and Reviews

Engaging with your customers to collect feedback is invaluable. It provides insights into areas of improvement and showcases to potential customers that your business values customer experience and better service.

You can use online survey tools or simply encourage patrons to leave reviews on platforms like Google, Yelp, or TripAdvisor. Acting upon this feedback, not just collecting it, signifies a proactive approach to better service that customers highly appreciate.

Tip # 2 – For Better Service, Hire a Professional Answering Service Like Insta Answer

As businesses grow, handling customer queries promptly can become a challenge. Professional answering services, such as Insta Answer, can ensure that each call gets the attention and professionalism it deserves, leaving a lasting positive impression on the caller.

By redirecting calls to trained professionals, your business ensures consistent service quality, even during peak times or after hours. This not only improves customer satisfaction, but also helps in building a strong brand reputation.

In conclusion, the importance of customer service in today’s business landscape cannot be understated. By offering superior service, businesses stand a better chance at boosting their revenues, enhancing their reputation, and building long-lasting relationships with their clientele.

If you would like to find out how partnering with Insta Answer can help you provide better service to your customers, please feel free to contact us for a no-cost, no-obligation consultation today. You can reach us toll free by phone at 1-877-631-9711 or by email at [email protected]. We look forward to hearing from you.

Picture of Steve Samuels

Steve Samuels

A respected contact-service executive and thought-leader, Insta Answer CEO Steve Samuels has over 30 years experience in the industry. Steve posts his insights here on our blog weekly (and sometimes more.)

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