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Customer care has Canadians reaching for the wallet, new research by American Express finds
TORONTO, Oct. 19, 2011 /CNW/ - Canadians continue to set the bar high when it comes to the level of service they expect and will alter their spending habits depending on a company's performance - an insight that could make or break a business' bottom line.
When asked, seven in ten (69%) consumers said they are willing to spend more with a company they believe provides excellent customer service. On average, they are willing to spend 12 per cent more, which is much higher than last year, when consumers were willing to pay seven per cent more. The findings were released today as part of the American Express Global Customer Service Barometer, an annual survey conducted in 10 countries exploring consumer attitudes and preferences about customer service.
"Canadian businesses really need to sit up and take notice. The results truly highlight the fact that service speaks - whether through compliments or complaints," says Howard Grosfield, President and CEO, American Express Canada. "It's not enough to build great products or to build great stores. In today's competitive marketplace, products can be quickly replicated. What is really hard, in fact impossible, to replicate is the total service experience."
Bad news travels fast - and further
As much as Canadians are willing to reward good service, they're also likely to punish poor experiences, the survey found.
More than five in six Canadians (85%) report that they've not completed a business transaction or made an intended purchase as a result of bad customer service. In fact, significantly more consumers (49%) say a bad service experience has the most impact on their impression of a brand, over and above a good experience (40%).
Consumers also said they are more likely to tell friends about a bad service experience over and above a good one - and they tell more people. When it comes to sharing stories about a customer service experience, about half (52%) talk about their good ones 'all of the time' but three in five (64%) blab about the bad ones. And an average of 16 friends will hear about those bad experiences over the nine that will hear of the good ones.
"It is increasingly clear that word-of-mouth can have a lasting legacy on a brand," says Grosfield "One of the ways we've started to gauge our level of customer care is through 'Refer to a Friend' feedback, which not only measures general satisfaction, but also how likely it is that a Cardmember would positively endorse our products and services to the people who matter most to them. To us, this speaks volumes more than your standard comment card."
Service impacts brand perception, brand switching and the likelihood for repeat business
Nine in ten consumers (89%) agree that the customer service experience has an impact on their impression of a company's brand, with more than half of Canadians (56%) saying they'd be willing to try a new brand or company in order to get better service.
Other consumers said they're willing to go out of their way for great service by driving a longer distance (25%) or sacrificing convenience (20%). And nearly all consumers agree that having a good customer service experience with a company makes them more likely to purchase a gift for someone else from that same company (91% strongly/somewhat agree).
Customer care reps still play an important role, but online interaction is quickly gaining traction
Consumers are still largely interested in resolving their customer service issues by speaking with a 'real' person on the phone (89% very/somewhat interested) or face-to-face (80%). But interest is growing in various online areas, including:
- Online chat or instant messaging: 38 per cent is very/somewhat interested in 2011, compared to 30 per cent in 2010
- Social networking sites: 20 per cent in 2011 (vs. 14% in 2010)
- Text messaging: 17 per cent in 2011 (vs. 12% in 2010)
About the American Express Global Customer Service Barometer
The American Express Global Customer Service Barometer research was completed online among a random sample of 1,060 Canadian consumers aged 18+. Interviews were conducted by Echo Research between Feb. 2-9, 2011. Overall, the results have a margin of error of +/-3.1% at a 95 per cent level of confidence. The same survey methodology was also used in France, Germany, Italy, the U.K., the Netherlands, Australia, India, Mexico and the U.S.
About American Express Canada
American Express in Canada operates as Amex Bank of Canada and Amex Canada Inc. Both are wholly owned subsidiaries of the New York based American Express Travel Related Services Company, Inc., the largest operating unit of the American Express Company. Amex Bank of Canada is the issuer of American Express charge and credit cards, with outstanding products like the American Express(r) Gold Rewards Card, and the American Express(r) AeroplanPlus(r) Gold Card. Amex Canada Inc. operates the Corporate Travel and Travellers Cheques divisions in Canada. American Express opened its first offices in Toronto and Hamilton in 1853 and now employs 3,700 Canadians coast-to-coast. For more information, visit www.Facebook.com/AmericanExpressCanada.
Visit American Express Canada on Facebook at www.facebook.com/americanexpresscanada
Media Contacts
Kathryn Perry, on behalf of American Express, (416) 644-2269, kathryn.perry@highroad.com