Good after-sales service is the key to customer retention, with 77 per cent of Indian consumers asserting that they will not make a repeat purchase or continue with a company's services in case of a bad experience, says an American Express report.
To attain new customers and retain the older ones, good customer service cannot be ignored as a majority (82 per cent) of Indian consumers value it the most while making a purchase.
"Customers want and expect high-quality service, especially as they focus on getting good value for their money in a difficult economic environment, and are willing to spend more with those that deliver excellent service -- suggesting substantial growth opportunities for businesses that get customer service right," American Express VP & GM (World Service India) Pradeep Kapur said.
As per the findings of the American Express Customer Service Barometer, 76 per cent of Indian consumers are ready to shell out 11 per cent more for excellent customer service.
In fact, 67 per cent of consumers have paid more for a product or a service of a company with a good history of customer service.
Moreover, 86 per cent of the consumers are ready to give a second chance to companies with a good track record even after a poor experience.
While the buying decisions of 89 per cent of Indian consumers are influenced by convenience and 90 per cent of them attach importance to value-for-money propositions, the majority of consumers (90 per cent) make their purchases based on the quality of customer service.
The American Express Customer Service Barometer is a survey conducted in India and eleven other countries exploring attitudes and preferences toward customer service.
Approximately 65 per cent of Indian consumers share the belief that companies have increased their focus on providing good customer service, compared to 49 per cent in Japan, 47 per cent in Mexico and 37 per cent in America, which seems to reflect the corporate mindset to retain customers as well.
If the company is successful in satisfying its customers in terms of service, it gets the benefit of word-of-mouth publicity.
About 95 per cent of consumers give positive reviews about companies in case of good service in contrast to 77 per cent who speak negatively after a poor experience.
