Returning to Shep Hyken’s 2020 special report that we discussed a couple weeks back, let’s turn our attention to the price are willing to pay for their customer experience. We can surmise that some people are indeed willing to pay more for higher quality, naturally. Otherwise, luxury brands wouldn’t exist, right?
The obvious question that jumps out is whether income level impacts a customer’s willingness to pay for a better experience. Unsurprisingly, the answer is yes. The more disposable income someone has, the more willing he or she is to pay a premium for higher quality customer service—or really any kind of product when you think about it. But it’s not as large a gulf between those making $100,00 or more a year and those making under $50,000.
As Hyken explains, “Even of those who make under $50,000 a year, 50% are willing to pay more for exceptional customer service,” whereas among those making over $100,000, 66% are willing to pay that premium. Sixteen percentage points aren’t very much considering the tens-of-thousands of dollars in income disparity in this comparison.
So, what fundamentally drives this? Being treated with respect has got to be high up there, of course. We all want the businesses we buy from to listen to our needs and offer goods or services that match those. We want the employees to be polite and attentive. And we especially want to know our time isn’t being wasted.
There’s a key in that last idea, the fact that each person values his or her time. Hyken confirmed as much in his research: a higher percentage of respondents prioritized convenience and were willing to shell out more to not have their time wasted. He continues, “I identified six areas of convenience: reducing friction, self-service, using technology, a subscription model, delivery and accessibility (hours of operation, location, etc.).” Of those areas, delivery was prized above all, skyrocketing the share of customers willing to pay extra to 90%!
Hyken wraps up this idea, saying, “Consider the power of a good customer service experience that is also convenient. This is a combination that will set you apart from your competitors.” We would actually double down on this notion and stress that convenience is actually an integral part of the customer service experience, not a separate factor. How many times have we all heard something like this about a restaurant: “They’ve got great food, but the service is terrible. I had to wait almost an hour to get my food!” In years past, a business with a great product might survive these kinds of frustrations, but life is speeding up—not slowing down—and so we’re all becoming increasingly impatient.
This makes sense: what do you really dread the most about a trip to the DMV? Grumpy employees and draconian paperwork are high up there, but they’re not the worst. It’s the waiting. It’s all that time you can never get back that you’ve wasted before your name is even called. It’s no surprise that many DMVs are now offering online or by-mail options for simpler tasks just to keep clear up the congestion.
The irony is that there’s nothing slower to adopt new ideas than the government. In truth, it took a pandemic to really spur these changes on. Recognizing that, don’t let your business fall behind the bureaucrats! As you analyze your customer service experience, don’t forget to focus on and emphasize convenience. Make sure your clientele doesn’t leave feeling like their time was wasted.
Remember: it’s not just the dollars and cents they value, it’s whether they think shopping at your business is worth the time.
Contact us at The Brandt Group today, and let’s develop a mystery shopping program that evaluates the most important components of your customer experience: product quality, staff friendliness, and merchandising, of course—but also convenience. Believe us, it’s worth your time to get this right.
