13 July 2010

Message to travel companies: are customers being served?

Hello: travel companies. Here’s some real news:

A majority of respondents report that quality customer service is more important to them in today's economic environment (61 percent). They also say they will spend an average of 9-percent more when they believe a company provides excellent service, according to a new survey.

"However, in a challenging economy where growth is harder to achieve, many businesses are missing out on this opportunity," according to the American Express Global Customer Service Barometer, which was a survey held in the US and 11 other countries.

The survey also found:

• Only a little more than a third of Americans (37 percent) believe that companies have increased their focus on providing quality service.

• Twenty seven percent feel businesses have not changed their attitude toward customer service.

• Another 28 percent say that companies are now paying less attention to good service.

"Customers want and expect superior service," said Jim Bush, Executive Vice President, World Service. He added:

"Many consumers say companies haven't done enough to improve their approach to service in this economy, and yet it's clear they're willing to spend more with those that deliver excellent service -- suggesting substantial growth opportunities for businesses that get customer service right. It's important to see customer service as an investment, not a cost."

Almost all of those in the survey said service is important, but one in five feel they're taken for granted.

Not surprisingly, nine in ten Americans (91 percent) consider the level of customer service important when deciding to do business with a company. But only one-quarter (24 percent) believe companies value their business and will go the extra mile to keep it.

Almost half or 48 percent feel companies are helpful but don't do anything extra to keep their business.

Worse, 21 percent believe that companies take their business for granted.

Customers are spreading the word willingly and widely when they experience good service, the survey found.

In fact, contrary to conventional wisdom, customers are more inclined to talk about a positive experience than complain about a negative one. Three-quarters (75 percent) are very likely to speak positively about a company after a good service experience in contrast with 59 percent who are very likely to speak negatively about a company after poor service.

By David Wilkening

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Your Comments (1)

Oh Bother!

Oh, botheration! We have been picking up clients for the last 4 years due to the major tour operators continued efforts to reduce costs thus prices just to encourage the rest of us to take more holidays. The result tends to be their long term and regular clients remember what they got before and what they are getting now. The result? We get another client :) I suppose they will discover paying reps peanuts is also counter productive next!

By Paul Davis, Thursday, July 15, 2010