Even in today’s price conscious world, there is something that people are prepared to pay a premium for. What could that be?
44% of people would happily pay a premium of more than 5%.
People don’t always go for the lowest price when they are looking for a spa, a hot tub or a pool.
They don’t always go for the lowest price even if, for instance, the two hot tubs are identical. So what is it that makes customers happy to pay that bit more to buy from one business rather than another?
Research shows that customers are willing to spend significantly more with a business that offers great customer service and a really good customer experience.
The report that came out last year revealed that an impressive 81% of people would be willing to pay more for better customer service and almost half would pay a premium of more that 5%.
That is a lot of people prepared to give you a lot more money.
But what do those people define as customer service and what happens when they are disappointed?
Customer service means different things to different people.
It is no longer enough for you and your staff to be polite and courteous in dealing with customers in order to make those people feel like they have received good customer service.
The public expects everyone in your business to be knowledgeable and helpful as well.
However, the area that came out as being one of the most important in the survey shows just what a busy world we all live in where time is such a precious commodity.
People wanted quick and easy access to information, they wanted to feel that it was easy to ask questions and that those questions were answered quickly and accurately.
This seems to relate to another aspect of the modern business world; the fact that customers take longer to make a large spending decision and require much more contact with the business that they are thinking of buying from.
What that means in the real world is that someone might visit your showroom half a dozen times or more to look at a hot tub, they might ring up and ask questions and they might even be in touch by email.
They aren’t wasting your time. They are a real prospect. That’s just how people behave these days and a good salesman will be patient and know that if he listens to the customer and answers their questions knowledgeably and sensibly, the sale will eventually be made.
And the benefit is that people are willing to pay for that service.
If they get to know you and like your business, price won’t be the most important factor in their decision making process.
Customers vote with their feet.
When customers don’t get the service that they are looking for or feel they deserve, they are quick to take action.
70% of people said that they had stopped doing business with a company because of a poor experience.
92% of those had gone straight to a competitor and done the deal with them.
82% of those disappointed, potential customers described their problem by saying that they had felt that they were expected to make too much effort.
So it is easy to see just how important customer service is. Get it right and people are happy to pay a premium, get it wrong and they will walk out of the door.