2012 Global Customer ServiceBarometerFindings in IndiaA research reportprepared for:
Research Method            This research was completed online among a random sample of             consumers aged 18+. A ...
The majority of consumers think businesses are paying    more attention to providing good customer service    Nearly two t...
More consumers say that companies meet their    customer service expectations    Nearly two thirds (65%) of consumers say ...
Consumers believe that companies are helpful and will    go the extra mile to keep their business   A little less than hal...
In 2012, consumers may be less likely to spend more    for excellent service    Significantly fewer consumers in 2012 say ...
Consumers value excellent service – most are willing to    pay for it, while some expect it   Those who are willing to spe...
Consumers are telling more people about their    customer service experiences  More than nine in ten consumers talk about ...
Poor service can lead to lost sales   In the past year, seven in ten (71%) consumers intended to conduct a business   tran...
Consumers lose their temper with customer service    representatives   Close to two thirds of consumers lost their temper ...
Consumers’ preferred channel for customer service inquiries     varies depending on the complexity of the inquiry    For s...
Consumers desire a short waiting time to resolve an    inquiry, above all   One in five consumers (22%) cite ‘waiting too ...
Consumers are generally patient when it comes to    their willingness to wait for customer service   On average, consumers...
Customer service wait times have generally improved   More than two thirds (69%) of consumers feel that companies have gen...
Social media is a common channel for consumers    seeking a customer service response    A little more than half (54%) of ...
Resolution of customer service issues via social media    is generally good and consumers see improvement    More than a t...
Consumers say small businesses provide more personal service and    understand both their business and customers better th...
Consumers willing to spend more for excellent customer service    have no preference between small businesses and large co...
Consumers believe hospitality and luxury brand    industries excel in customer service   The hospitality industry (e.g., h...
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American Express Customer Service Barometer 2012

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American Express Customer Service Barometer 2012

  1. 1. 2012 Global Customer ServiceBarometerFindings in IndiaA research reportprepared for:
  2. 2. Research Method  This research was completed online among a random sample of consumers aged 18+. A total of 1,007 interviews were completed.  Interviewing was conducted by Echo Research between February 22 and 29, 2012.  The overall results have a margin of error of +/- 3.1 percentage points at the 95% level of confidence.© echo 2
  3. 3. The majority of consumers think businesses are paying more attention to providing good customer service Nearly two thirds (65%) of consumers believe businesses, in the current economy, ‘have increased their focus on providing good customer service’. This is largely the same as consumer opinion in 2011 and 2010 (66% and 65%, respectively). One in five (22%) consumers believe businesses ‘pay less attention to providing good customer service’, unchanged from the past two years. As in the past, one in ten (11%) consumers said that ‘businesses’ attitudes towards customer service have not changed’. In this current economy, do you think that …? 11% 2012 Businesses attitudes towards customer service 11% 2011 have not changed 12% 2010 65% Businesses have increased their focus on 66% providing good customer service 65% 22% Businesses pay less attention to providing good 22% customer service 21% 0% 20% 40% 60% 80% 100% Not Shown: 2% or less Not SureQ.T3© echo 3
  4. 4. More consumers say that companies meet their customer service expectations Nearly two thirds (65%) of consumers say their customer service experiences ‘meet their expectations’, back to 2010 levels (65%) and significantly higher than seen in 2011 (61%). Similar to 2010 and 2011, roughly one in ten (12%) said that the customer service experiences they have with companies usually ‘exceed their expectations’ (11% in 2011; 9% in 2010). Conversely, 19% of consumers in 2012 say their customer service experiences ‘miss their expectations’, significantly fewer than the one in four (25%) consumers who felt that way in 2011 and 2010 (24%). In general, would you say the customer service experiences you have with companies usually…? 65% 61% Meet your expectations 65% 2012 19% 2011 25% 2010 Miss your expectations 24% 12% 11% Exceed your expectations 9% 0% 20% 40% 60% 80% 100% Not Shown: 4% or less Not SureQ.T2 Significantly higher/lower than previous© echo year at the 95% confidence level. 4
  5. 5. Consumers believe that companies are helpful and will go the extra mile to keep their business A little less than half of consumers (45%), in both 2012 and 2011, feel that companies ‘value their business and will go the extra mile for them,’ significantly higher than in 2010 (39%). About a third say that companies ‘are helpful, but don’t do anything extra to keep their business’ (32%). Fewer in than one in ten think that companies ‘take their business for granted’ (7%) or ‘don’t seem to care about their business’ (4%). In general, do you feel that companies…? 45% Value your business and will go the extra mile 45% for you 39% 32% 2012 Are helpful, but dont do anything extra to keep 34% your business 48% 2011 2010 7% Take your business for granted 9% 9% 4% Dont seem to care about your business 4% 2% 0% 20% 40% 60% 80% 100% Not Shown: 12% or less Not SureQ.T1 Significantly higher/lower than previous© echo year at the 95% confidence level. 5
  6. 6. In 2012, consumers may be less likely to spend more for excellent service Significantly fewer consumers in 2012 say they have ‘spent more with a company because of a history of positive customer service experiences’ (74% in 2012; 80% in 2011). Fewer consumers than in 2011, although still a large majority, say they are willing to spend more with a company they believe provides excellent customer service (87% in 2012; 90% in 2011). As in 2011, they are willing to spend 22% more, on average. How much more would you be willing to spend with a company that you believe provides excellent customer service? 2012 2011 2010 Willing to 5% more 27% Willing to 25% spend more 42% spend more 90% 87% 10% more 21% 25% 21% Willing to Average: 22% Average: 22% spend more 76% 20% or more 40% 40% 13% Average: 11%Not willing to spend 8% Have spent 5% Have spent 17% Have spent more more more more 74% 80% 67% Dont know 6% 5% 8% 0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% 60%Q.T4/T5 Significantly higher/lower than previous© echo year at the 95% confidence level. 6
  7. 7. Consumers value excellent service – most are willing to pay for it, while some expect it Those who are willing to spend more with a company they believe provides excellent customer service ‘place a high value on excellent customer service’ (26%), and believe that ‘excellent service is worth spending more to them’ (32%). Greater than one in ten consumers ‘only spend money with companies who provide excellent service (18%), feel that ‘companies who provide excellent service have earned their business’ (14%) and ‘refuse to do business with a company that provides poor service’ (11%). For those not willing to spend more with a company they believe provides excellent customer service, more than a third (36%) ‘expect excellent service’ and feel they ‘should not have to spend more’. Three in ten (30%) feel that ‘prices for goods and services are already too high’, and 17% say ‘they can’t afford to’. Why would you be willing Why would you not be willing to spend more with a company that to spend more with a company that provides excellent customer service? provides excellent customer service? Excellent service is worth spending 32% I expect excellent service 36% more to me 34% and should not have to 37% spend more I place a high value on excellent 26% customer service 24% Prices for goods and 2012 30% services are already too 33% I only spend money with companies 18% 2011 high who provide excellent service 16% 17% I cant afford to Companies who provide excellent 14% 10% service have earned my business 16% I refuse to do business with a 9% 11% My expenses have gone up company that provides poor service 10% 10% 0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% 60% Not Shown: <1% None of these Not Shown: 10% or less None of theseQ.T5A Respondents not willing to spend more (n=136/102)Q.T5B Respondents willing to spend more (n=871/900)© echo 7
  8. 8. Consumers are telling more people about their customer service experiences More than nine in ten consumers talk about their good customer service experiences, at least some of the time (97%), while two thirds (66%) tell someone about them all of the time, similar to 2011 (98% and 67%, respectively). When it comes to poor customer service experiences, 86% of consumers talk about them (compared to 92% in 2011), 54% of them all the time (56% in 2011). Compared to last year, consumers tell significantly more people on average about their customer service experiences, both good and bad. On average, they tell 44 people about their good experiences (up from 32 in 2011), and 47 people about their bad experiences (up from 35 in 2011). How often do you tell other people How often do you tell other people about your good experience? about your poor experience? All the time Sometimes Rarely Never Avg # of Avg # of All the time Sometimes Rarely Never people they tell people they tell 2012 66% 31% 2%1% 44 54% 32% 10% 4% 46 2011 67% 31% 1% 1% 32 56% 36% 6% 2% 35 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%Q.N6/6a/6b/6c Significantly higher/lower than previous© echo year at the 95% confidence level. 8
  9. 9. Poor service can lead to lost sales In the past year, seven in ten (71%) consumers intended to conduct a business transaction or make a purchase, but decided not to based on a poor service experience. In the past year, have you intended to conduct a business transaction or make a purchase but decided not to based on a poor customer service experience? Yes, 71% No, 29%Q.N13© echo 9
  10. 10. Consumers lose their temper with customer service representatives Close to two thirds of consumers lost their temper with a customer service professional in the past year (64%). Of those who lost their temper, six in ten (61%) ‘insisted on speaking with a supervisor’, two in five (41%) ‘demanded to know the customer service professional’s name’, and nearly two in five (37%) ‘threatened to switch to a competitor’. One third (34%) ‘hung up the phone’, three in ten (29%) ‘talked about their experience via social media’, one in five (18%) ‘stormed out of the store’, and one in ten (12%) ‘used profanity’. Which of the following have you done when you lost your temper with a customer service professional? In the past year, have you lost your temper Insisted on speaking with a with a customer service professional? supervisor 61% Demanded to know the customer service professionals name 41% No, 36% Threatened to switch to a competitor 37% Yes, 64% Hung up the phone 34% Talked about my experience via social media 29% Stormed out of the store 18% Used profanity 12% 0% 20% 40% 60% 80% 100% Not Shown: 4% None of theseQ.N14Q.N14a Respondents who have lost their temper in the past year (n=641)© echo 10
  11. 11. Consumers’ preferred channel for customer service inquiries varies depending on the complexity of the inquiry For simple inquiries, such as locating a product or checking an account balance, one out of five (21%) consumers prefer using a company website or email, followed by using an automated voice response system on the phone (16%), or text message (15%). For a more complex inquiry, such as returning a product or getting assistance with a product issue, one in four (25%) consumers prefer speaking with a ‘real’ person on the phone, followed by using a company website or email (18%), and a ‘face to face’ conversation (15%). For even more difficult or complicated inquiries, close to three in ten consumers (28%) prefer a face to face interaction, one in five (22%) prefer speaking with a ‘real’ person on the phone, and 13% prefer a company website or email. For each of the following types of customer service inquiries, which is your preferred channel for reaching out to companies? A simple inquiry A more complex inquiry A difficult inquiry (such as locating a product or (such as returning a product or (such as making a complaint or checking an account balance) getting assistance with a product issue) disputing a charge) Company website or email 21% 18% 13% Using an automated voice 16% 12% 11% response system on the phone Text message 15% 9% 8%Speaking with a real person on 14% 25% 22% the phone Face to face 12% 15% 28% Online chat/instant messaging 12% 11% 9% Social networking site 12% 10% 9% 0% 20% 40% 60% 0% 20% 40% 60% 0% 20% 40% 60%Q.N12a/b/c© echo 11
  12. 12. Consumers desire a short waiting time to resolve an inquiry, above all One in five consumers (22%) cite ‘waiting too long to have an inquiry resolved’ as the most likely customer service issue to influence them to switch brands or companies. Almost as many (20%) cite ‘a rude or unresponsive customer service representative’, followed by ‘being shuffled from representative to representative with no resolution of your issue’ (17%). Which of the following customer service issues would be most likely to influence you to switch brands or companies? Waiting too long to have an inquiry resolved 22% A rude or unresponsive customer service rep 20% Being shuffled from rep to rep with no resolution of 17% your issue Having to continue to follow up to check if your issue 14% has been resolved Finding out company policies and pricing have 10% changed without notice Being pressured to purchase something 7% Being forced into one channel (email, phone, etc.) 7% 0% 20% 40% 60% Not Shown: 4% None of theseQ.N15© echo 12
  13. 13. Consumers are generally patient when it comes to their willingness to wait for customer service On average, consumers are willing to wait a maximum of 16 minutes on hold when they contact a customer service center by telephone. Two in five (41%) are only willing to wait less than 5 minutes, while 17% are willing to wait one hour or more. In person, consumers are willing to wait an average of 17 minutes for customer service help, slightly more than on the phone. Three in ten (28%) are willing to wait less than five minutes, while 16% are willing to wait one hour or more. When you contact a customer service center by phone, What is the maximum amount of time you are what is the maximum amount of time you are willing to wait for help from customer service in-person willing to wait on hold? (ex., at a bank, retail store, service provider or restaurant)? 1 hour or 1 hour or more, 16% more, 17% Less than 5 Less than 5 minutes, 28% minutes, 41% 30 min >1 hour, 6% 30 min >1 Avg. = Avg. = hour, 7% 16 min 17 min 15 min >30 15 min >30 min, 15% 5 min >10 min, 11% min, 17% 10 min >15 5 min >10 10 min >15 min, 9% min, 15% min, 18%Q.N16/N18© echo 13
  14. 14. Customer service wait times have generally improved More than two thirds (69%) of consumers feel that companies have generally improved in terms of the amount of time they are being left on hold during a typical customer service phone call. Less than one in ten (9%) feel that companies have worsened in this respect, one in five (22%) feel they have not changed. More than two thirds (68%) of consumers feel that companies have generally improved in terms of the amount of time they wait for customer service in person. Less than one in ten (8%) feel that companies have worsened in this respect, one in four (24%) feel they have not changed. In the past year, do you believe that companies have generally improved or worsened in terms of the amount of time you feel you have spent waiting for help from customer service…? Improved Have Not Changed Worsened On the phone 69% 22% 9% In-person 68% 24% 8% 0% 20% 40% 60% 80% 100%Q.N17/N19© echo 14
  15. 15. Social media is a common channel for consumers seeking a customer service response A little more than half (54%) of consumers say they have utilized social media to get a customer service response. Those who have used social media for customer service have done so for a variety of reasons, including ‘sharing information about their service experience with a broader audience’ (50%), ‘asking questions of other users about how to get better service or have a better experience with a company’ (46%), ‘seeking recommendations from others about great service establishments‘ (41%), ‘praising a company for a great service experience’ (40%), and ‘seeking an actual response from a company to help them with a service issue’ (39%). Which of the following are reasons you use social media when it comes to customer service? In the past year, have you utilized social media Share information about your service experience with a broader audience 50% to get a customer service response? Ask questions of other users about how to get better service 46% Seek rec. from others about great service establishments 41% No, 46% Yes, 54% Praise a company for a great service experience 40% Seek a response from a company to help you with a service issue 39% Vent frustration with a bad customer service experience 32% Praise an individual for providing a great service experience 31% 0% 20% 40% 60% 80% 100% Not Shown: 2% None of theseQ.N20/N21Respondents who have utilized social media to get a customer service response in past year (n=540)© echo 15
  16. 16. Resolution of customer service issues via social media is generally good and consumers see improvement More than a third (37%) of consumers who have used social media for customer service inquiries say they always get an answer or have their complaint resolved. One in ten (14%), however, say they rarely or never get an answer or have their complaint resolved. Four in five (80%) consumers feel that companies have generally improved their response times over social media channels. Almost one in five (17%) say they have not changed, while only 2% say response times over social media have worsened. When you use social media to complain about a customer In the past year, have companies generally improved or service issue, how often do you feel you get an answer or worsened in terms of how quickly you feel they respond to your complaint is resolved by the company? you over social media channels surrounding a general inquiry or complaint? Never, 2% Rarely, 12% Worsened, 2% Have not Always, 37% changed, 17% Improved, 80% Sometimes, 50%Q.N22/N23Respondents who have utilized social media to get a customer service response in past year (n=540)© echo 16
  17. 17. Consumers say small businesses provide more personal service and understand both their business and customers better than large companies Four in five (80%) agree small, independently or locally-owned businesses ‘provide a more personal customer service experience’, with two in five (41%) strongly agreeing with this statement. Four in five (80%) also feel small businesses ‘understand their customer better’ than large companies, with two in five (40%) strongly agreeing. Three quarters (75%) feel small businesses ‘know their business/product better’, with more than a third (37%) strongly agreeing. Based on your experience, how much do you agree or disagree that each of the following statements accurately describes customer service in small business? Agree They provide a more personal customer service experience than large 41% 39% 80% companies They understand their customer better 40% 40% 80% than large companies They know their business/product 37% 38% 75% better than large companies 0% 20% 40% 60% 80% 100%Q.N24© echo 17
  18. 18. Consumers willing to spend more for excellent customer service have no preference between small businesses and large companies Comparing a small independently-owned business and a large company that both provide excellent customer service, a little more than a third (36%) of consumers who are willing to spend more with a company that provides excellent customer service are willing to spend more with a large company compared to a small business. Another third (34%) are willing to spend more with a small business over a large company, three in ten (30%) state there is ‘no difference in their willingness to spend more for excellent customer service.’ Considering a small independently-owned business and large company that both provide excellent customer service – which type of company are you willing to spend more with? Willing to spend more with a small business, 34% No difference, 30% Willing to spend more with a large company, 36%Q.T5CRespondents willing to spend more with a company that they believe provides excellent customer service (n=871)© echo 18
  19. 19. Consumers believe hospitality and luxury brand industries excel in customer service The hospitality industry (e.g., hotels, motels, etc.) and luxury brands rate highest in the customer service areas consumers were asked about, with the retail and casual dining industries closely following. % Who Agree the Statement Describes Customer Service in the Industry 67% 72% Customer service exceeds your expectations 68% 63% 69% Casual Dining 71% 75% Hospitality Values your business and will go the extra mile for you 71% 68% 73% Retail 78% 81% Travel Have increased their focus on providing good 78% customer service 75% 80% Luxury Brand 77% 80% You have spent more with a company because of a 77% history of positive customer service experiences 75% 77% 0% 20% 40% 60% 80% 100%Q.N7-N11© echo 19

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