Refine & Redefine

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. 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.

Source: Hindustan Times

Some killer single question customer surveys

Almost one year ago to the day I wrote a somewhat controvertial article about Net Promoter Scores.

This article is a response to a reader’s question – “what I would recommend as an alternative?”

The original article is here along with video, but here is an excerpt – with my answer to the question below.

Companies obtain their Net Promoter Score by asking customers a single question on a 0 to 10 rating scale: “How likely is it that you would recommend our company to a friend or colleague?”

So it’s simple, easy to collate, and even easier to communicate to staff. But let’s look further. I am a Qantas frequent flyer with high status and rarely buy my own ticket (because most of my travel is business) would I recommend? Some questions

Who would I be recommending to? My budget conscious parents or my CEO peer group?

Would I be treated the same as others? I know I’m treated better. What about smokers? Are they likely to recommend to non-smokers? What about other smokers who have been smoking a rival brand for 20 years? Of course not.

Would you recommend you favourite nightclub to your family?

Although you love the nightclub, you might not want your family there.

If you are a Bank Manager, is it fair that you NPS is largely driven by Head Office policies which affect your customers? You might have given awesome service deserving of a 10 score, but your customer’s loan may have been unceremoniously declined by a computer program over a minor technicality.

It’s all about context. The moment you need to clarify context, the simplicity is lost. By all means, use NPS as part of your service matrix but not as the sole tool.

Below are some killer single question surveys which can be used as an alternative to Net Promoter Score (NPS).

But – if you are focused on a one question survey I would be more specific.

Here are some examples for a restaurant (but don’t ask all of them).

Would you call this one of your favourite restaurants?
Can you see yourself calling yourself a ‘regular’?
Do you think you will come back for a similar occasion?
Will you go home and rave about your last experience here?
Would you recommend us to friends with similar tastes and budget to you?
If you are a regular, how would you rate this experience with previous ones? (scale = Better, consistent, Not as Good).
Did you receive the service you expected when you walked in today?
Was the product as good as you expected when you walked in today?
Be specific, be brave. The context is as important as the question.

Don’t ask vague questions allowing interpretation and loose context.

Tighten it up – you will get real information, and real truth.

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