Why your customers are spending more on other leisure brands and less on yours.

November 26, 2010


Two recent studies indicate that focusing more on customer service means you can focus less on discounting.

If you’re a leisure marketing specialist who has had to cut prices since the Great Recession, your problem may not be the economy.

Two recent studies demonstrate that consumers are willing to pay more if you focus on providing a great customer experience.

American Express found that great customer service experiences affect price, loyalty and repeat purchases.

  • Americans say they’re willing to spend an average of 9% more if the company provides great customer service.
  • 8 in 10 say they are far more likely to give a company repeat business after a good customer service experience.
  • 1 in 2 Americans say that it takes only 2 bad customer service experiences before they stop doing business with a company.
  • But almost 9 in 10 say they’re willing to give a company a second chance if they have historically given great customer service.

Right Now’s most recent Customer Experience Report found that 1 in 10 would pay a 25% premium for superior service.

  • 8 in 10 respondents say they have stopped doing business with a company because of poor customer service.
  • 1 in 2 say they would pay 10% or more to ensure a superior customer experience.
  • 2 in 10 would pay 20% or more, and 1 in 10 would pay 25% or more for great customer service

When people have a good or bad experience with your brand, they tell their friends and families:

  • 55% of consumers say they recommend a company because of their superior customer service.
  • Consumers recommend companies based on great customer service more than even products (49%) or price (42%).
  • 8 in 10 respondents say when they have a bad experience, they tell others about it.

Right Now estimates that if leisure brands improved customer service, they could charge billions more:

  • The US airline industry could make an additional $10.6 billion.
  • The consumer electronics industry could increase revenues by $16.5 billion.
  • Consumers would have spent $87 million more last Cyber Monday for superior customer experiences.

If you’re a leisure marketing expert, let us know what you are doing to improve your customer experience both online and in your stores.

You can learn more about the American Express Global Customer Service Barometer here.  Download Right Now’s North American Customer Experience Report here.


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