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Article : Customer Service VS Loyalty

What will make a customer stay with a company? Is it loyalty to the supplier, or the customer service you receive? Perhaps one cannot exist without the other? We asked industry professionals for their opinions.

- a survey by Joss Jalbert,

Dan Whelan
Senior Vice President, Worldwide Support
United States

"Yes, there is a correlation. Being in the customer service industry, I am very sensitive to the level of service I get as a consumer and more apt to respond with favoritism toward suppliers through customer loyalty if I receive good customer service. Customers that are treated well are less inclined to shop around for other suppliers. In fact, happy customers are more inclined to refer other customers."

About Epicor

Epicor Software Corporation drives business growth. We provide flexible, industry-specific software designed around the needs of our manufacturing, distribution, retail, and service industry customers... (read more)
Porfirio Saleiro
Adecco Portugal

"I think this relationship is consistent, but sometimes the vendor does not have the perspective of the consumer, they need measurement tools to have perception of the service, as a customer service mystery and quality control are the differentiating factors."

About Adecco Portugal

Adecco is a world leader in proving workforce management solutions. Adecco's global workforce of close to 32,000 colleagues is focused every day on finding the right person for the job, supporting ou... (read more)
Aditya Bhalla
Practice Head, Innovation Practice
QAI Global Institute

"Loyalty is a much abused word in marketing. Custoemrs are loyal to themselves and not to any service provider. Customers buy products and services to get a job done. And whichever supplier or service provider does that in the most elegant manner wins the deal. For suppliers each transaction is a moment of truth that determines the future inflow of revenues.

This changes however in monopolistic markets - limited options forced on consumers either by regulartory restrictions or through high cost of switchovers. Consumers really do not have a choice but to keep on availing the services of the supplier even in the face of shoddy service. The situation remains unchanged even if multiple suppliers end up providing the same level of shoddy service and the regulatory environments are not strong enough to push for higher quality of service."

About QAI Global Institute

QAI is a process consulting and training company helping IT and BPO organizations achieve operational excellence. QAI India has been consulting clients on framework-based models.
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Jonathan Judd
Director of Strategic Alliances
8x8 Inc.
United States

"Absolutely, service is key. Price is not the most important thing with a product where ongoing service is important to your satisfaction of the experience."

About 8x8 Inc.

8x8, Inc. (Nasdaq: EGHT) leverages its patented software technologies to deliver high quality voice solutions with integrated messaging and video to businesses of any size with employees in any locati... (read more)
Ashraf Imran
Manager Business Development
Fusion BPO Services

"Yeah its a strong relation of trust, business at its core level is based on human nature of trust. You trust the brand or you trust the person. Loyalty to the supplier is a direct response or a reflection to the service received. Good service will always reap loyal consumers."

About Fusion BPO Services

Founded in 2003, Fusion BPO Services is a global outsourcing services provider with dual headquarters in Draper, Utah in the US and Kolkata, India. Its end to end outsourcing solutions include the com... (read more)
Martin Jukes
Management Consultant
Mpathy Plus
United Kingdom

"There is a correlation between service experience and loyalty but I am not sure that it is all to do with excellence. As we are time poor it is often very satisfying to have an order fulfilled as expected. If I know that I am going to get what I want and that the last experience was ok then I will re-order again unless I have the time to look around. Is this loyalty? Probably but not what organisations strive to deliver. Too many look to improve on the delight factors but fail with the hygeine factors so fail."

About Mpathy Plus

We are management consultants with a real focus on improving customer service and the customer experience. We provide a wide range of services across all sectors with expertise in transforming service... (read more)
Jeff Roberts
Inforonics LLC
United States

"I do believe that good customer service results in greater loyalty, as long as other things are equal. Things like price and selection and attention to details, and social responsibility. If two companies sell products for around the same price, carry the same color choices, send the product that was ordered reasonably quickly, and don’t trample on human rights to manufacture or distribute their products then the better customer service should win loyalty. It would win mine. Price, alone, neither wins nor deserves loyalty."

Shannon McCain
Resource Development, Manager
Apple Vacations
United States

"Absolutely. I receive excellent service - I go back; most times no matter cost. I've spent upwards of 20% more for a product solely due to supplier loyalty. I will drive an extra 30-minutes to go to a particular to store because they smile and know me by name. I overlook small issues or inconveniences solely because I like who I deal with."

Sailesh Bhatia
Chief Training Manager
Reliance Industries Limited

"The loyaty is a perception a customer has towards a brand and he may choose to be biased towards the company. Excellent service is the mindset with which a customer deals when dealing with his favourite brand"

Carl Lobaugh
Director of Quality
United States

"It should go without saying. Consumer satisfaction is tied to loyalty which is ultimately tied to retention and/or expanding services. In survey research on clients that I have done, there are very high correlation measures between all three. As for a relationship between services provided and loyalty I have seen correlations as high as .82. Service is fundamental if you want to keep your customers. Again, service is that moment by which a customer develops perceptions on your organization which will drive behavior to use you again. Naturally, there are other elements such as pricing, availability of products/services, etc. that will also affect that behavior but service is one of the most important."

About Abbott

CRB Engineers and Builders is an engineering and architectural design and construction firm specializing in the biotech, pharmaceutical, food and beverage, nutrition, and mission critical industries.... (read more)
Durinda Biesman
Vice President, Global Service Delivery
NICE inContact
United States

"Yes. When I'm not transfered around and one person takes ownership of my inquiry, it tells me the company really does care about my business."

About NICE inContact

NICE inContact works with organizations of all sizes to create customer experiences that create deeper brand loyalty and relationships that last. With NICE inContact CXoneTM, a cloud customer experien... (read more)
Russell Schmidt
Extenda Communications
United States

"Absolutely. Most companies, including mine, are willing to pay a fair price and stick with specific suppliers if they are treated well, if orders are handled with care and accuracy, and if we are treated like a VIP, meaning that if we ask for a favor once in a while, it is granted."

About Extenda Communications

Started in 1970 by Cyril and Sheldon Schmidt, Extenda has grown and adapted with each wave of change sweeping the communications industry. No other company can provide the depth of experience or the t... (read more)
Jane Symonds
Customer Services Manager
Türk Ekonomi Bankası (TEB)
United Kingdom

"Absolutely, with the plethora of choice available to the Consumer we need to base our buying choices on more variables than simple cost for most value added products and services"

About Türk Ekonomi Bankası (TEB)

Türk Ekonomi Bankası (TEB), a financial institution in the Turkish banking sector, started its banking activities in 1927. With its ever-expanding branch network and wide range of products and ser... (read more)
Muhammad Arshad
Director Customer Services

"Definitely Yes. If I will get better, my loyalty will much higher towards my supplier."

About Banglalink

banglalink digital communications limited is fully owned by telecom ventures ltd. (previously orascom telecom ventures limited) of malta, which is a fully owned subsidiary of global telecom holding s.... (read more)
Mow Chung
Head of Business Consulting - Business Solutions Group: New York Metro
United States

"Absolutely! I would rather pay extra then to deal with poor customer service."

About BT

BT is provider of communications services and solutions for everybody in the UK and for corporate customers in the rest of Europe, with global reach through partnerships. BT provides services for all... (read more)
Nuno Periquito
Business Consultant
Altitude Software

"Yes, definitely. In most cases, products are easy to imitate, everyday a new copy cat appears in the market but consistently replicating and enhancing the customer experience is an extremely powerful differentiator that, when well done, will earn my loyalty and in some cases I’m willing to pay more because of that loyalty and knowing I’ll get a better service."

About Altitude Software

Altitude Software is a global provider of omnichannel solutions to deliver great customer experiences. Its solutions help companies and organizations unify all customer interactions and become more cu... (read more)
Rashmi Handa
Associate Director - Operations

"Not always as price is a very big consideration as well. I would give it a 70:30 mix."

About TechMahindra

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by Mahindra & Mahindra Limited, in partnership with British Telecommunicati... (read more)
Chris Swallow
Relex Technical Specialist
Parametric Technology Corporation
United Kingdom

"Certainly - I believe that any customer who has a good customer-service experience will happily return for repeat business, despite the initial product/ service failure which necessitated a need for customer service. In my opinion, it can often be beneficial to have a customer need to contact you for assistance occasionally as it keeps the company in their minds - those customers who have a perfect experience with a product and never require customer service assistance never develop loyalties and may not return with future business. Meanwhile, a customer with a minor product issue but experience great customer service will return out of loyalty."

Christine Bryant
Contact Centre Manager
United Kingdom

"Yes - I believe that if you provide an excellent service then to a certain degree you want to stay with that brand, if it remains competitively priced. Most people want to know that in the event of something going wrong it is going to be dealt with efficiently and effectively, although on the downside of this is that you do not know how efficiently your problem is going to be handled until you experience it and this can impact on brand loyalty. It is perceived by customers that premium brands should provide an even better customer service and as customer expectations are higher this correlation should also be taken into account when building the customer journey on how the service can be enhanced even further. ."

About Wunderman

Wunderman is a network of advertising, marketing and consulting companies with offices in 60 countries. Headquartered in New York City, Wunderman is part of Young & Rubicam Brands and a member of WPP... (read more)
Jaime Scott
Head of Global Quality
United Kingdom

"There are a number of factors that impact customer loyalty and retention. However, research I’ve undertaken for a utilities organisation highlights the relationship between Customer Service Satisfaction performance and loyalty.

From the research, a strong correlation emerged - In those months where Customer Service Satisfaction was low, the percentage of customers who left the following month was higher. Conversely, when satisfaction was high, more customers stayed.

Based on the research, for each 1% improvement in Customer Service Satisfaction, there was a 0.125% increase in customer retention and loyalty.

This meant that on a customer base of four million customers, each 1% improvement in Customer Service Satisfaction equated to an additional 5,000 saved customers.

With average annual revenue per utilities customer of £500, each 1% improvement in satisfaction equated to saved-revenue of £2.5m per annum.

It really is worth investing in your service propositions – this cost of failure is perhaps the most misunderstood and underestimated impact to your bottom line."

About Capita

Outsourcing - delivering measurable benefits to our clients What we bring our customers: Inspired productive people Streamlined administration processes Effective ICT Innovation Improved c... (read more)
Rosemary Turley
NICE Systems
United States

"Yes - good service and being easy to do business with is very important and is a key reason for staying with a supplier even if there is a small price differential"

About NICE Systems

NICE (NASDAQ: NICE), is a worldwide provider of intent-based solutions that capture and analyze interactions and transactions, realize intent, and extract and leverage insights to deliver impact in re... (read more)
Richard Blank
Costa Rica's Call Center
Costa Rica

"As we all know, the age old adage states that it is more expensive to find a new client than to retain an existing one. When I am shown respect and my account( regardless of size) receives the proper attention, I will in turn, continue to work with the supplier and even refer their services. Just a simple courtesy call goes a long way."

About Costa Rica's Call Center

Costa Rica's Call Center (CCC) is a telemarketing outsource company located in the capital city of San Jose, Costa Rica. Our main focus has been, and will always be to personally train each and every... (read more)
Gordon Pullan
Assistant Vice President
United States

"In many cases--Yes. From my experience, the hotel and airline industry seem to be particularly good at this. Other sectors that may have less a sense of having to earn your business show it by treating you as though you should be grateful to be a customer."

About MassMutual

Founded in 1851, MassMutual is a mutual life insurance company that is run for the benefit of its members and participating policyholders. The company has a long history of financial strength and stro... (read more)
Cristian Perez
Socio Director
Adoria Consulting

"Bad service is a necessary condition to switch suppliers but not sufficient. There are some "captive" services like telecom and banking companies where you don't get a good service but due to the time involved in changing providers and uncertainty about getting a better service from competitors, you don't switch services just because of a bad experience. Nonetheless, you are more likely to consider other offer when you are dissatisfied with the service to receive."

Ronni Marshak
Senior Vice President
Patricia Seybold Group
United States

"In most cases, no. Although there are exceptions, such as airlines where high-level frequent flyers get preferred service and support, as well as financial institutions that have special support lines for large investors.

However, most organizations seem to treat all customers the same when they are getting support."

Nina Kawalek
RCCSP Professional Education Alliance
United States

"Some contact centers will provide "premium" services to high-revenue "VIP" customers and special accounts: VIP calls are routed (determined by, say, account number) to CSRs that have expanded authority and flexibility to address customer concerns.

Without a doubt, a service representative's freedom to employ his or her own discretionary actions to satisfy the customer does make a positive difference and increases customer loyalty. Anyone who has experienced this type of premium service knows the difference and, yes, becomes somewhat addicted to it. At a minimum, a premium service (that does not cost the customer anything) can reset the consumer’s mental bar and redefine the service expectations by which all other competitive offerings will be judged.

If a supplier wants to create a correlation between it’s customers and loyalty, or wants to set its customers’ service expectations above its competition’s capabilities, premium services can certainly do that."

About RCCSP Professional Education Alliance

RCCSP, celebrating a quarter century of service to the contact center industry, provides access to a portfolio of professional contact center industry certifications and accredited certification train... (read more)
Cheryl McNeil
GC Learning Services LLC
United States

"Yes. If my answers are complete and accurate and brief, then I am more likely to increase my loyalty to that supplier."

Jonathan Grant
United Kingdom

"By improving customer service to consumers, businesses will enjoy more devotion to their brand because ultimately, the better service a customer receives the greater the loyalty they display to the supplier."

About Vonage

Vonage (NYSE: VG) is a provider of communications services connecting individuals through broadband devices worldwide. Our technology serves approximately 2.4 million subscribers. We provide communica... (read more)
Barry McGuire
Director of Operations
LifePlans Inc.
United States

"Yes, I believe loyalty to a supplier is driven by the supplier proving a committment to providing great service and showing the consistency necessary to retain consumers. Over the past 5 years the economy has forced some industires to consciously choose a lower-cost work-force and to try to train that work-force to do more with less. The result has been a perception of a lack of committment and a reality of inconsistency in the service model."

About LifePlans Inc.

LifePlans Inc. has been helping long-term care and health insurers, plans and providers manage risk through solutions since 1987.

About ContactCenterWorld:
Company LogoContactCenterWorld is The Global Association for Contact Center & Customer Engagement Best Practices. Today we have over 205,000 corporate 'individual' members have joined the association's website ''. We were established in 1999.
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Today's Tip of the Day - Impacts Of Technology

Read today's tip or listen to it on podcast.

Published: Wednesday, April 28, 2010

Printer Friendly Version Printer friendly version

2021 Buyers Guide IVR

Call Center Studio

Call Center Studio
Call Center Studio is the world’s first call center built on Google and is one of the most secure and stable systems with some of the industry’s best reporting. It is one of the most full-featured enterprise grade systems (with the most calling features, one of the best call distribution, outbound dialing features and integrations—including IVR, AI Speech Recognition, blended inbound/outbound calling and includes Google’s new Dialogflow and Speech API. Call Center Studio is the absolute easiest to use (with a 10 minute setup), and is the price performance leader with lower equipment cost and less setup time.

Computer Data Services, LLC

Get the benefits of an expensive, on-premise telephone system without the high price tag and annoying maintenance.

- Never miss another phone call
- No more busy signals
- Feature rich
- Answer your calls from anywhere

eGain Corporation

eGain SmartIVR
eGain SmartIVR is an over-the-top solution to modernize IVR systems. Businesses can offer smartphone callers an easy choice to resolve queries via digital messaging and intelligent self-service. And they can optimize the IVR experience with end-to-end analytics.


Virtual Switchboard
Megacall provides a fully customised Virtual Switchboard software for all companies (including IVR service). No matter the size of your business, our services adapt to the needs of each client.

Are you looking for a more effective way to communicate with your customers? Discover the advantages of using the IVR and how it can help in your communications.


MightyCall's IVR that will increase your business’s efficiency at a fraction of the cost of a secretary. Your auto-attendant is designed to:
- Greet callers
- Deliver necessary information
- Forward calls to the appropriate extension
- Take human error out of the system

Nuxiba Technologies

Provide your customers with an effortless self-service experience. Easily create menus using predefined or custom prompts and data dips and route customers to live agents when needed.

Enable your customers to make payments and access information 24/7 at their convenience. Request a quote or live demo today.

OpsTel Services

The SPEED solution solves for service level issues while cost optimizing the environment with automation.

Provides an enhanced way to speed up & optimize invoking temporary agent skills configuration changes into the contact center environment.

Speed allows you to schedule both future changes & temporary changes that auto-revert back to the original state when scheduled time expires.

Speed features:

*Automated / Scheduled Temporary Agent Skills Configuration Management
*Immediate Temporary or Reoccurring Schedule Skills Configuration Changes
*Easy to Use/Operations Administration Focused
*Descriptive Monitoring Activity Dashboard
*Detailed “End to End’ Audit Trail and Performance Monitoring

Teckinfo Solutions Pvt. Ltd.

IVR Edge
IVR Edge is a high performance, robust and scalable ivr system that works on various leading hardware such as Dialogic, Keygoe and Synway etc. It can handle the simplest of simple to the most complex of requirements to when it come to creating an IVR. Integration with any 3rd party database, be it for banking, telecom, insurance, travel, payment gateway etc can be handled with ease. Ideally suited to create Hosted IVR and virtual patching solutions with scalabilities that can range from 4 to 128 E1’s per setup with voice recording and CDR functionality. Integration with leading text to speech (TTS) and speech recognition ASR engines add to the flexibility and functionality.

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