Indians ready to spend more for better customer service
By siliconindia   |   Wednesday, 04 May 2011, 03:35 IST
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Indians ready to spend more for better customer service
Bangalore: Service can make or break your brand. In this era of greater customer satisfaction and as the service economy flourishes, Indian consumers are willing to spend as much as 22 percent more for better customer service. Indians are ready to spend more with a company they believe provides excellent customer service compared to their global counterparts. According to a survey by the American Express Global Customer Service Barometer, Indian consumers view businesses' efforts towards providing good customer service positively. This is an annual survey conducted in India and nine other countries exploring attitudes and preferences towards customer service. It sates that 96 percent of Indians believe that their customer service experience impact their impression of a company's brand. Indians also exhibit a higher tendency towards discussing good customer service (98 percent) with 67 percent talking about it 'all the time'. It's found that more than 66 percent of Indian consumers believe businesses have 'increased their focus on providing good customer service' while 45 percent think that companies 'value their business and will go the extra mile for them.' Nearly 90 percent of the surveyed consumers are willing to spend 22 percent more with a company they believe provides excellent customer service. Over 80 percent of Indians have not completed a business transaction or their intended purchase because of poor customer service. Three in five Indians have even cancelled an online purchase or shopping experience because they were not satisfied with the service experience (59 percent). This rises to 75 percent among those who shop online daily or weekly. According to Pradeep Kapur, Sr VP & GM, World Service India & Process Excellence, American Express, "As the lifestyle needs of consumers evolve in India, service experience becomes a critical determining factor to build brand loyalty, success and customer stickiness. This survey establishes the fact that businesses need to consider customer service as an investment as opposed to cost. Therefore businesses need to invest and build on their customer service capabilities which can contribute significantly towards establishing brand salience and trust amongst consumers." The study further explains that 52 percent Indians would try a new brand or company for a better service Experience and 45 percent think that companies 'value their business and will go the extra mile'.

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