•   Cognito & YouGov research reveals 82% of consumers would share a bad customer service experience
•   Excellent service could add £200m to the revenues of a typical FTSE100 company
•   John Lewis, Marks & Spencer and Amazon top of customer service poll

Research just released shows that organisations that invest in customer service excellence are likely to receive additional purchases from 53% of customers. Moreover, 59% of consumers will pay a premium for products or services where they believe they are likely to receive good service*.

Customers were asked about which experiences of customer service they tend to share with others; 82% of consumers would share a bad customer service experience, compared to 55% who would share a good experience.

Other results include:
•   When buying a product or service worth £500, 53% of respondents would be willing to pay a premium, with 44% paying up to 9% more, and 9% paying 10% or more.
•   On average respondents are willing to pay a 2.9% premium for good service.

Using Cognito’s Value of Service Calculator, below are the financial values that charging a premium for good service equates to for a typical FTSE100 company (£7bn t/o).

Premium % for service excellence   Value of premium
2.9% (average respondents are willing to pay)**   £203m
5%   £350m
10%   £700m

“Our YouGov survey further demonstrates that investment in customer service has a huge impact on an organisation’s revenues and brand perception,” said Jonathan Chevallier, Strategic Development Director at Cognito. “Marketing investment without a real eye on delivery and front line service is wasted, with consumers deciding for themselves which brands they can rely on to deliver. Moreover, they are willing to spend more in a recession, which is something all companies can learn from.”

“As a company whose mission it is to provide an innovative approach to customer service, we have seen the tremendous impact a continued focus on this area can have,” said Mike Timlett, IT Director, CitySprint. “The cost of bad service is not always immediately visible, but we witness the benefits of good service every day – this survey reinforces exactly why it is so important to business.”

In the online YouGov survey commissioned by Cognito, workforce performance management specialist, 2,084 online respondents were also asked to name the brand they believed is best when it came to customer service. John Lewis ranked first for customer service (9%), with Marks & Spencer and Amazon ranked second and third respectively (both 5%); Tesco (4%), Asda and Virgin (both 3%) also appeared in the top ten ranking brands.

The survey follows the launch of the Value of Service calculator, a new financial modelling tool from Cognito providing organisations with the typical increase in revenue, reduction in cost and impact on profit service excellence can have. To calculate your organisation’s potential gain or loss when it comes to customer service, click on the following link: http://www.cognitomobile.com/servicecalculator.