Swindon & Wiltshire Business News

Three in 10 customers prepared to pay more for great customer service

Cyril MolitorThree in 10 customers prepared to pay more for great customer service, while more than a third admit that they'll stop doing business with a brand due to poor customer service.

Those are the findings of a survey conducted by Swindon-based contact centre, customer management, and business process outsourcing service provider Woven.

Woven's research found that the number of customers experiencing a problem with an organisation has increased during the last two years by 1.5 percent to 14.3 percent: its highest ever level.

The number of customers who cited an “organisation not keeping its promise or commitment” as a key cause of their complaint is also at its highest ever rate, being mentioned in 17.2 percent of all problems or complaints.

The research suggested that Just under three in ten (29 percent) UK customers are prepared to pay more to receive a great customer service, while 36 percent of customers say they’ll stop doing business with a brand due to poor customer service.

Woven chief executive officer Cyril Molitor said too many brands are treating customers as commodities and that a ‘lowest cost’ approach is damaging their experiences.

“It’s a simple philosophy, so why aren’t more brands practicing it?" he asked.

“Approaches from a purely technological standpoint and an inability to invest are leaving customers out in the cold, and brands must learn that service should not be dismissed as just a number on a balance sheet.

“But because the current market is defined by a lowest-cost approach to providing service, innovation is being constrained and value isn’t being delivered.

“And it is the customers who are feeling the impact and becoming increasingly frustrated that their expectations aren’t being met.”

The results were published in the same week as a major survey by the CBI, which suggested that more than three quarters of British people (76 percent) want to do business with firms with a good reputation, using purchasing power to send a message to businesses.

The annual Everyone’s Business survey found people are less likely to buy the products or services of a company with a bad reputation (79 percent).

Respondents said treating employees well (61 percent), a greater focus on gender pay (40 percent), and the environment (38 percent) can go a long way to restoring a business’s reputation.

CBI deputy director-general Josh Hardie said: “Businesses know that their reputation is their lifeblood. After another difficult year for firms, it’s great to see evidence that their hard work to support employees and keep the UK growing is recognised by the public.

"Our latest tracker shows an uptick in its reputation from last year. The focus on giving employees a stronger voice whether through employee share ownership or other such schemes, is being well received by the public."