Would You Pay More for Excellent Customer Service?


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A key tenant in Social CRM has always been around providing users with a better experience. In addition to delivering a great product one of the best ways to provide a better experience is through excellent service (yes there are other things). Here’s a simple personal example.

In my neighborhood there are two large grocery store chains; a Trader Joe’s and a Safeway. I spent my first few months living here going to Safeway because I didn’t know the Trader Joe’s existed (even though it was half a block away…ya, don’t ask). Safeway is a typical large grocery store complete with their Safeway card “loyalty” program. If you’ve ever been to a Ralph’s, Lucky, or a Food Emporium then you know exactly what I’m talking about. The service at all of these grocery stores is usually the same, that is to say “neutral,” as is my experience.

Trader Joe’s on the other hand offers superior service (at least all the ones that I have been to). There is never a shortage of clerks that I can harass ask about food, there is usually a friendly “sampler” at the back of the store ready to over me some type of food I’ve never had (two days ago it was edamame humus and naan), and I get the sense that employees care that I’m there (on numerous occasions employees opened up bags or boxes of food to let me try the contents before I purchased). Overall the service at Trader Joe’s is great, and so is my experience.

What’s the point?

Well the point is to say that service largely shapes our experience, and the question is, “would you pay more for excellent service, if so, how much more?”

According to a recent American Express study, “Americans will spend 9% more with companies that provide excellent service.” That’s actually quite a significant number (and would be even if it was 5%). Consider the following the numbers from the study:

  • 91% of Americans consider the level of customer service important when deciding to do business with a company
  • 24% of Americans feel that companies value their business and will go the extra mile to keep it (which means 76% do not)
  • 48% feel companies are helpful but don’t do anything extra to keep their business
  • 21% believe that companies take their business for granted
  • 75% are very likely to speak positively about a company after a good service experience
  • 59% are very likely to speak negatively about a company after poor service
  • 81% are likely to give a company repeat business after a good service experience
  • 51% are likely never do business with a company again after a poor experience

Think about what these numbers mean in terms of how people turn to social networks (or just the internet in general) to voice their opinions and provide feedback to companies and to each other. Their messages are dramatically amplified. 75% of Americans are likely to speak positively about a company after a good service experience. This means that I can tell a friend of mine about how great my experience was or I can blog about it and tweet about it so that I now reach thousands of people.

This brings us to what I consider to be one of the most interesting pieces of information in the study, the three most influential factors for consumers when deciding which company to do business with.

  • personal experience (98%)
  • company’s reputation or brand (92%)
  • recommendations from friends and family (88%)

There are plenty of very interesting stats in the full report which I recommend you take a look at.

These numbers are all very relevant to Social CRM which seeks to empower customers to become advocates and improve user experience. When you consider the numbers above and then consider the social customer then it becomes quite apparent that Social Customer Relationship Management (SCRM) should seriously be considered as a viable investment.


Well, take a look at this chart which shows that in the U.S Americans spend more of their online time on social networks then on anything else (by far, and notice the increase) and then consider that according to Internet World Stats over 77% of Americans (that’s over 266 million) are Internet Users.

There are so many stats and pieces of information on how Americans use the internet and social networks that it gets a bit overwhelming. However, when you consider the numbers above and then consider the social customer then it becomes quite apparent that Social Customer Relationship Management (SCRM) should seriously be considered as a viable investment.

I think the next big question is what kind of goods are customers willing to pay more for? Take a car for example. Would you be willing to pay an extra 4-5k on a $50,000 car provided that the salesman provided you with great service? What about spending more on a computer or a television set? What about clothes or home furnishings?

Take a look at the report and tell me what you think. What are some of the implications or interpretations that you have? Would you be willing to spend more for excellent service?

Republished with author's permission from original post.

Jacob Morgan
I'm a best-selling author, keynote speaker, and futurist who explores what the future of work is going to look like and how to create great experiences so that employees actually want to show up to work. I've written three best-selling books which are: The Employee Experience Advantage (2017), The Future of Work (2014), and The Collaborative Organization (2012).


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