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Ninety per cent of Indian consumers are willing to spend more for better customer service - on average, 22 per cent more - according to 2011 Global Customer Service Barometer, a 10-nation annual study by American Express. This number has grown from 76 per cent last year.
Forty per cent of respondents said they were willing to spend over 20 per cent more than they were paying currently, for services from companies they believed provided ‘excellent customer service'.
Speaking to Business Line , Mr Pradeep Kapur, Senior Vice-President and GM, World Service India and Process Excellence, American Express, said that this was a trend peculiar to Indian consumers.
He added, “Indian consumers also speak more about positive consumer experiences than those in other markets, while not speaking so much about the negative consumer experiences. However, they drop purchase decisions with poor customer service experiences. All this makes creating positive service experiences for consumers all the more critical for companies.”
Indians walk, don't talk, with poor service
Ninety eight per cent of consumers said they tell other people about a good customer service experience, with 67 per cent doing so ‘all of the time'. 91 per cent of them speak about a poor service experience, with 56 per cent talking about it ‘all the time'.
“With word-of-mouth for positive experiences being high, it creates a multiplier effect,” said Mr Kapur.
However, 80 per cent of respondents did not complete a business transaction or did not make an intended purchase because of poor customer service, according to the study. 59 per cent claimed to have cancelled an online purchase or shopping decision because of poor service.
About 75 per cent among those shopping online at least once a week also claimed to have done the same.
Give service, will buy; Else, will swear
Eighty per cent of Indian consumers claim to have spent more with a company because of ‘a history of good customer service experiences', higher than 67 per cent last year. 29 per cent of consumers were willing to travel a longer distance to consume a brand that delivered better customer service, reveals the study. About 52 per cent of respondents said they would try a new brand to get better customer service.
The most annoying thing to hear on the customer care phone line, for 34 per cent of respondents, was: ‘Your call is important to us, please continue to hold'.
About 73 per cent of respondents admitted to losing their temper with a customer service professional, with 11 per cent also admitting to using profanity. A total of 1,002 adults were surveyed in India for the study this year.
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