Consumers willing to pay more when they are satisfied with their experience, survey says
When it comes to small business resources, customer service should be at the top of every smart business owner's list.
In addition to its traditional use in customer retention, a new study revealed the far-reaching impact of enhancing customer experience, finding that consumers will actually pay more when they feel a business has exceeded their expectations.
A study from Strativity Group found that more than 70 percent of customers said they will spend 10 percent more with a business if they have an exceptional experience.
In addition, 40 percent of loyal customers said they are willing to pay an additional 10 percent or more to continue purchasing from companies that exceed their expectations - compared to 9 percent of dissatisfied customers - while over half of unhappy clients expect discounts of 5 percent or more to continue doing business with the company.
The payoff for pleasing customers extends beyond immediate profits as well, with the survey finding that satisfied customers are nearly three times as likely to expect to do business with the company for ten years or more, compared to dissatisfied customers.
Similar results were found by a recent study from the Retail Council of Canada, which reported that customers who had highly exceptional shopping experiences were approximately 75 percent more loyal to that store.
