Findings from the New Zealand Service Survey 2017

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NZ Service Survey
2017
Key findings & statistics

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We are a service consultancy operating in
Wellington, New Zealand. With over 30 years
industry experience, we’ve worked with
businesses in most sectors and sizes.
The things that cause poor service are the same
things that waste time and money. We focus on
improving your service to realise savings.
We can help you collect, understand, and action
customer feedback - resulting in increased
engagement, improved revenue, and lowered
cost.
About Service Strategy
We’re experts in using process, culture, and data
to drive improvements to your service.
We help you:
● Understand any gaps around your service
● Build a plan to improve
● Enact that plan
● Set KPIs and reporting to keep track
Get in touch for more:
www.servicestrategy.com/#team

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94% of NZers will try a business
if they hear it has great service.

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94% of NZers will try a business
if they hear has great service.
Why this is important:
● Word of mouth advocacy is one of the most
influential types of messaging your business
can have. You get a massive multiplier on
your existing marketing spend by providing
exceptional service.
● Most businesses just assume their service is
acceptable. Feedback processes provide
you with data on how your customers feel,
rather than assumptions.
How do you use this to your advantage?
● Use your customer feedback programme to
collect quotes and stories that you can
retell as part of your wider marketing
strategy.
● Use your social media channels to thank
people for their compliments - and where
possible share these comments with your
wider audience.

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89% of New Zealanders
spend more money
if they get great service.

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89% of NZers spend more money
if they get great service.
Why this is important:
● Better service doesn’t just stop people
leaving, people will actively spend more to
reward the service you’ve provided.
● They also tell their friends, who will also be
more likely to spend.
● Well designed service improves job
certainty - reducing staff turnover, and
shrinking your recruitment and training
costs.
How do you use this to your advantage?
● Amplify your good news stories. When a
customer gives positive feedback, don’t be
shy about sharing it.
● Increase your chances of getting good
feedback by asking customers about their
experience.
● Make sure you have processes in place for
any negative feedback and turn it into a
great result for your customer.

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77% of New Zealanders
never return to a business
where they received poor service.

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77% of NZers never return to a business
where they received poor service.
Why this is important:
● You may not know that your customers are
receiving poor service. Without feedback
systems in place, your business can slowly
leak customers to your competitors.
● Retaining customers provides revenue at
lower cost than new sales. The probability
of selling to an existing customer is ~65%;
while for a new customer is only ~12%.
How do you use this to your advantage?
● If it’s true for you, it’s true for your
competitors too. By focusing on service,
you can not only retain your customers, but
gain from your competitors too.
● Conversely, customers will stay at a
business who treats them well. Using
customer feedback systems to keep track
of your customers experiences provides the
data you need to ensure success.

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When asked, 61% of NZers
can immediately recall
where they received poor service.

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How do you use this to your advantage?
● Understand that no one expects you to be
perfect, but they do expect you to take
responsibility when you mess up.
● Limit the number of poor experiences your
customers have, and resolve complaints
quickly and publicly.
● Coordinate between your complaints, social
media, and customer service teams to
ensure complaints are resolved in a way
your customers tell their friends about.
61% of NZers can immediately recall
where they received poor service.
Why this is important:
● Service is emotional, and emotional
experiences create long lasting memories.
It’s difficult to shake someone’s perception
of mistreatment once it’s set.
● Research has shown that quickly and
proactively resolving issues makes
customers stronger advocates than if they’d
never had a problem in the first place.

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41% of NZers
never tell a business
that they received poor service.

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41% of NZers never tell a business
if they received poor service.
Why this is important:
● If a customer has had a difficult time
dealing with your business, they may not
want to invest more time telling you about
it - especially if they don’t think they’ll get a
positive outcome.
● There is a ‘dark figure’ of service, an
unknown amount which isn’t reported to
you. Good processes and reporting can
minimise this.
How do you use this to your advantage?
● By actively polling customers and giving
them an opportunity to let you know about
their experience, you open a dialogue which
would not otherwise exist. This promotes
honest communication and helps you limit
the unknowns.
● Proactively engaging and resolving issues
for customers has shown to not just
increase engagement, but turns angry
customers into brand advocates.

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Summary findings for 2017
1. We live in a social world. Everything is shared and amplified -
the good and the bad.
2. Service perceptions are emotionally driven, making them
more memorable.
3. Bad experiences can turn into positive memories when
resolved effectively.
4. Feedback systems are essential to give you the data to
improve your service experiences.

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330 New Zealanders completed the survey in January 2017.
We received responses from across the length and breadth of New Zealand.
Participant recruitment was via online advertising, and the survey was conducted using online survey tools.
Respondent demographics for location, age, and household income are similar to the general NZ
population.
A little more about the 2017 NZ Service Survey

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service strategy.
know your customer
Contact:
Jon Batt jon@servicestrategy.com
Managing Director (+64) 21 15 15 195 February 2017