Customers Are Willing to Pay More for Good Customer Service

Customers appreciate customer service, so much so that they’re willing to pay extra for it. Not only do 65 percent of consumers consider the quality of customer service a major factor in their shopping decisions, but 67 percent of them also said that good customer service encourages them to shop longer and/or spend more money across industries and services, according to a new survey by the International Council of Shopping Centers.

In the retail industry specifically, the ICSC found that for 73 percent of respondents, good customer service increases their likeliness to spend more money than they originally planned to spend. These findings are in line with PwC’s 2018 research, which indicated that customers were willing to pay up to 16 percent more for top-notch service.

“CMOs take note: our research revealed that 65 percent of U.S. consumers find a positive brand experience to be more influential than great advertising,” David Clarke, PwC principal and experience consulting leader, said back in 2018. “The ‘Experience Economy’ has ushered in a new B2C mindset, steering brands beyond emphasizing products and services to selling rich consumer experiences.” 

ICSC’s survey also revealed that, despite the prevalence of online shopping, in-person service still makes a major difference in consumers’ impressions of brands and their willingness to conduct business with them. Tom McGee, president and CEO of ICSC, reiterated the point in a company statement:

“Nearly 60 percent of consumers said that they’re more satisfied with customer service in-store than online, which speaks to the value of the in-person experience. Even in the age of online, the human element remains a vital component of success for shopping centers and retailers as they invest and re-invest in their physical presences.”

When it comes to in-store shopping, consumers value friendly and/or knowledgeable employees the most (62 percent), followed by the ability to easily find items (59 percent) and speed and ease of checkout (59 percent). Their biggest frustrations, meanwhile, were long checkout lines, low employee availability, and negative employee interactions or “pushy” salespeople.

Related Articles

Shifting demands and market conditions are driving vendors to switch from best-of-breed components to more integrated suites.

Posted February 01, 2019

In the America's Best Customer Service 2019 report compiled by Newsweek and Statista, Chick-fil-A beat out runner-up Sonic and Arby's, which came up third.

Posted February 01, 2019

Call centers have been improved so much that they are now the key element to good customer service.

Posted February 15, 2019