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, ContactCenterWorld.com
- Shannon McCain, Resource Development, Manager, Apple Vacations, United States
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- Chris Swallow, Relex Technical Specialist, Parametric Technology Corporation, United Kingdom
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."
- Aditya Bhalla, Practice Head, Innovation Practice, QAI Global Institute, India
- Ashraf Imran, Manager Business Development, Fusion BPO Services, India
- Cristian Perez, Socio Director, Adoria Consulting, Spain
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."
- Nina Kawalek, CEO, RCCSP Professional Education Alliance, United States
- Christine Bryant, Contact Centre Manager, Wunderman, United Kingdom
- Porfirio Saleiro, Director, Adecco Portugal, Portugal
- Martin Jukes, Management Consultant, Mpathy Plus, United Kingdom
- Carl Lobaugh, Director of Quality, Abbott, United States
- Jeff Roberts, Director, Inforonics LLC, United States
- Gordon Pullan, Assistant Vice President, MassMutual, United States
- Richard Blank, Ceo, Costa Rica's Call Center, Costa Rica
However, most organizations seem to treat all customers the same when they are getting support."
- Ronni Marshak, Senior Vice President, Patricia Seybold Group, United States
- Dan Whelan, Senior Vice President, Worldwide Support, Epicor, United States
- Russell Schmidt, Ceo, Extenda Communications, United States
- Barry McGuire, Director of Operations, LifePlans Inc., United States
- Nuno Periquito, Business Consultant, Altitude Software, Portugal
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."
- Jaime Scott, Head of Global Quality, Capita, United Kingdom
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Published: Wednesday, April 28, 2010
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