Guest Blogger Jim Boyce: "Value" is Key to Positive Customer Experience in 2010
What a difference a year makes, especially when it comes to the ever-changing attitudes of consumers toward the service experience. We at Convergys just released the results of our second annual Consumer Scorecard Research study, and there are some dramatic adjustments to what consumers expect in the way of service from companies in 2010.
As we all know, consumers (myself included) are a tough lot. But many of the trends we are currently seeing in our customers' service preferences can be attributed to one major economic influence: the recession. When we conducted our first annual survey in late 2008, the serious affects of the recession were just surfacing. More than one year later we find ourselves in a very changed marketplace. According to our recent findings, 46 percent of respondents say they are worse off today than they were before the recession. For today's consumer, the key to a superior customer service experience in 2010 can be summed up in one word: value.
Today's recession-weary consumers are spending less, and when they do spend they want to feel like they are getting something more for their money. More often than not, they look for this value in the service experience. Our research has shown the customer experience has become as important as the product being sold, and more important than brand or price. In our 2010 research study, respondents chose "good value for the money" as the second most important customer service attribute, a significant jump from 2008 when it came in sixth on the list; and 33 percent rated "reliable service" as more important than price in how they defined "good value for the money." Somewhat surprisingly, with finances tight, customer emphasis on price actually declined in 2010. Only 5 percent viewed good value as "paying the lowest price," down from 8 percent in the prior year's study.
So, how can you show your customers value? Far and away, customers want companies to value their time. Some 33 percent of respondents ranked "addresses my needs on the first contact" as the most important customer service attribute. Closely linked to this, some 25 percent of respondents ranked "access to knowledgeable employees" as the third most important customer service attribute. The message here is that customers expect their needs to be handled promptly and accurately: what we call first-call resolution or "one-and-done."
Customers also emphasized the need for companies to "value me and my preferences." "Treats me like a valued customer" was the fourth most important customer service attribute, cited by 22 percent of respondents in 2010 - almost double the number in 2008. A large part of showing customers you value them is honoring their preferences, and the importance of this attribute rose, too. Customers want choices, in other words, the ability to talk to live agents, or use automated self-service, the Web, chat, or email - or to flip back and forth between these options, if and when they wish.
One continuing trend is the rise in consumer intolerance for bad experiences. Our new research shows today's consumers are far more likely to either complain directly to the company, to take their business elsewhere, or both. For example, 66 percent reported their bad experiences to companies, up from 58 percent the prior year. And 44 percent simply stopped doing business with the company, compared to 38 percent in 2008. The good news is that that 23 percent of respondents said that the quality of service improved, while 60 percent said it stayed the same in the 2010 study. Only 17 percent complained that service got worse. And while consumers may not forget a bad experience, they may be willing to forgive. Some 16 percent of respondents said they would be willing to do business with a company they previously had a bad experience with if that company made an effort to win them back.
Just like the famous scene in the movie Jerry McGuire where Cuba Gooding Jr. tells Tom Cruise to "show me the money!" today's consumers are asking companies to "show me the value!" They want good value for their money - not just lower prices. They also want their value as a customer to be acknowledged by a business. They see this happening when a company offers flexible contact options, quick resolution of their issues, attention to their complaints of a bad experience - and an extra effort to win them back should they decide to go elsewhere or reduce their spend out of frustration and disappointment.
Only those companies that have the customer service mechanisms in place to provide this value are the companies that will win new business, retain current customers, and grow market share in 2010.
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About the Author: Jim Boyce is president of global sales and services at Convergys Corporation
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