{"id":32536,"date":"2022-04-06T00:00:00","date_gmt":"2022-04-06T00:00:00","guid":{"rendered":"https:\/\/hyken.com\/customer-service-is-more-important-than-price\/"},"modified":"2023-11-01T14:12:02","modified_gmt":"2023-11-01T14:12:02","slug":"customer-service-is-more-important-than-price","status":"publish","type":"post","link":"https:\/\/hyken.com\/customer-service-strategies\/customer-service-is-more-important-than-price\/","title":{"rendered":"Customer Service Is More Important Than Price"},"content":{"rendered":"\"CS\u201cIs customer service more important than price?\u201d\u00a0<\/span>\u00a0<\/span>\r\n\r\nThat\u2019s exactly what we asked more than 1,000 consumers in our <\/span>customer service research<\/span><\/a>. The response was that 58% said, \u201cYes.\u201d And just to make sure, we asked a similar question later in the survey, \u201cWould you pay more if you knew you would receive great customer service?\u201d Once again, 58% said, \u201cYes.\u201d<\/span>\u00a0<\/span>\r\n\r\n\u201cPlease take care of me, and I\u2019ll even pay a little more.\u201d<\/strong><\/em>\r\n\r\nWhen more than half of your customers are saying, \u201cPlease take care of me, and I\u2019ll even pay a little more,\u201d you have to listen. The point is that price becomes less relevant when you know you\u2019re going to get better service or have a better experience.\u00a0<\/span>\u00a0<\/span>\r\n\r\nAmazon is an excellent example. People trust Amazon, not just for its reliability, which is an important part of the customer experience, but also for its customer service. They like the instant email confirmations, the ability to track a package, a notification when the package is delivered, and the comfort of knowing that if the item is damaged or lost \u2013 or they simply don\u2019t like the product \u2013 Amazon will take care of them. The result of that trust for the service and experience Amazon provides means price becomes less relevant to its customers.<\/span>\u00a0<\/span>\r\n

Isn\u2019t Amazon always the lowest price?<\/span><\/h3>\r\nSome of you may be thinking, \u201cIsn\u2019t Amazon always the lowest price?\u201d The answer is, \u201cNo.\u201d At one time, Amazon was typically the lowest priced online retailer, but not anymore. Today Amazon is competitively priced, which means customers may find the same merchandise on another website for a little less. Even so, customers often come back to Amazon because they know what to expect. The experience is consistent and predictable, and they know if they need customer service for a problem, they will get it, and it will be good.<\/span>\u00a0<\/span>\r\n\r\nFurthermore, Amazon is so confident about its service that its website displays where certain products can be purchased for lower prices through third-party sellers that use Amazon as a marketplace but sell directly to the customer. Yet once again, many Amazon customers still choose to buy through the Amazon Prime program.\u00a0<\/span>\u00a0<\/span>\r\n\r\nAnd some customers are willing to pay more than others. Specifically, younger customers are less price-sensitive than older customers:<\/span>\u00a0<\/span>\r\n

Sixty-two percent of Millennials and 60% of Gen Z are willing to pay more for great customer service<\/span><\/b>\u00a0<\/span>versus just 46% of Boomers.<\/span><\/b>\u00a0<\/span><\/p>\r\nOffering the lowest prices makes sense for some businesses, but you can\u2019t ignore the findings. A great service experience creates price tolerance. How much tolerance depends on the market or industry. That\u2019s up to you to determine. You\u2019ll have to experiment to determine the tolerance levels. Just consider the findings. You can\u2019t ignore that more than half of the customers we surveyed said, \u201cGreat customer service is more important than price.\u201d<\/span>\u00a0<\/span>\r\n\r\n