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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, ContactCenterWorld.com



"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."

 
Porfirio Saleiro
Director
Adecco Portugal
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)
 
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)
 
Sailesh Bhatia
Chief Training Manager
Reliance Industries Limited
India

"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"

 


"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."

 
Mow Chung
Head of Business Consulting - Business Solutions Group: New York Metro
BT
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)
 


"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."

 
Rosemary Turley
Marketing
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
CEO
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
MassMutual
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)
 
Nina Kawalek
CEO
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)
 
Jonathan Grant
Ceo
Vonage
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)
 

About ContactCenterWorld:
Company Logo# ContactCenterWorld ContactCenterWorld is The Global Association for Contact Center & Customer Engagement Best Practices. Today we have over 215,000 corporate 'individual' members have joined the association's website 'ContactCenterWorld.com'. We were established in 1999. www.contactcenterworld.com
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Today's Tip of the Day - Environmental Considerations

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

Published: Wednesday, April 28, 2010

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2024 Buyers Guide Automated Call Distributors

 
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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.

 

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