Defining the value of excellent customer service is key

If you’ve ever wondered whether the actual value of excellent customer service can be properly measured you’ll be sure to find these results as interesting as I did. We value our entire team at Miratel and place great emphasis in selecting the right candidates to become customer relationship agents. That live interaction with our customer’s clients is the best daily measurement of whether our services truly excel, both in providing or receiving the most accurate information but also conducting the call with an awareness and expertise in the ability to provide high quality customer service. Naturally it doesn’t end with recruiting but we ensure that our training, monitoring and performance analysis allows our agents (and therefore our contacts) to deliver the best possible service. We’ve always believed that delivering the best customer service has a value that can’t be measured but delivers us the most important goal; satisfied clients who remain loyal to us.

In a previous post I wrote about a report that showed the potential cost in lost business per year if the best customer service was not provided, while this survey looks at things from the other way round. Now a new survey by StellaService has tried to break down this value into a monetary term. However you slice it the results simply reinforce that the best way to gain a competitive edge is dedicating your business to providing a level of customer service that stands out from the crowd. Their data is based on online retailers or e-tailers as they are most commonly known and evaluates their customer service, customer care or customer care departments; either via telephone or online tools. The headline to their reports is that the value to this sector of commerce is that great customer service will be worth some $17.3 Million (USD) in the current year. Using these computations which were based upon online retail only and exporting them to other product and service sectors brings the overall value to some $268 million (USD) per year.

The metrics within the survey calculated that consumers are prepared to spend more for superb customer service to the tune of 9.7%. Ask yourself if you could possibly elect to turn away a near 10% spike in earnings and you’ll have the answer to just how important customer service is. There are also opportunities to bring even more value, particularly if your service or product has a potential audience that might need more assistance, support or after sales care. The survey shows that the more support a customer is likely to need the greater value they place in actually receiving the quality of service required and expected. Your customer wants to have confidence that help is at hand, matters will be resolved quickly and the process is effectively as easy as possible. Customer service is all about the right personality matched with expertise and efficiency, for whatever reason online customers tend to perhaps expect the worst (perhaps due to the perception of distant or remote aftercare) and thus are thrilled when excellent service is received.

304 consumers were polled with a series of questions concerning customer service and their overall shopping habits and preferences. A number of specific questions were designed to determine the value people will attach to a high standard of customer service. The results brought forth a weight in terms of percentage of spend that they felt the improved service merits, especially if a choice was to be had.
Topics covered in the survey included:

• The additional amount (the “premium”) consumers are willing to spend on a product or service if they know they will receive great customer service

• The customer service factors and considerations that are most important to consumers when purchasing goods or services

• Consumer behavior subsequent to receiving great customer service.

Worth noting if you need support as an online retailer, the key components of great customer service are speed of delivery, overall helpfulness of customer service representatives and ease of access to pertinent information.

Jordy Leiser, CEO of StellaService summarized the findings:

“We’ve always known that consumers value great service, but this study is the first to quantify it in terms that people and businesses understand – in dollars and cents, It’s no secret why the companies we’ve identified as the Elite online retailers have steam-rolled through this difficult economic environment; they treat their customers like family and friends. Consumers gravitate toward companies that provide exceptional service, especially in the world of e-commerce. The opportunity for Internet retailers to build their businesses around providing great service is too big to ignore. By improving the basic practices and policies that matter most to online consumers, a business can quickly and dramatically bolster its competitive position, improve its financial profile and increase customer loyalty. It’s a win for businesses, a win for investors, and most importantly a win for consumers.”

So now the value of exceptional customer service has been quantified it may be time to ask yourself whether you are providing the best that you can? If you wish to explore the benefit of our call center solutions in raising the standard of your customer service please contact us at Miratel.