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Why Consumers are Willing to Pay Extra for a Superior Customer Experience

Why Consumers are Willing to Pay Extra for a Superior Customer Experience

Guest blog post by Daniel O’Callaghan from Telax. 

It goes without saying customer experience (CX for short) should be a high priority for companies of all kinds. If a firm isn’t delivering a satisfying customer experience, then it can’t hold on to its existing customers, and that dramatically limits long-term success. Which makes everything and anything a company does to deliver a superior CX (people, process, software, networks) a high priority.

While these general CX concepts are widely understood and accepted, many business decision-makers don’t appreciate how valuable a great CX truly is. The reality is, a superior customer experience won’t just keep consumers around longer. It also ensures they’ll be willing to pay a premium for your products and services.

Once a company embraces this notion, its potential for success expands significantly.

Paying for quality

An Oracle study a few years ago found 81% of shoppers are willing to pay more in order to receive better customer service. Almost half said they’d pay a premium of 5%+ for a superior CX.

It’s obvious why consumers prefer a good customer experience, but less apparent why they’re willing to spend more in cases when products and services in question are unchanged.

Win The Customer contributor and CEO of Lesson.ly Max Yoder recently analyzed the value provided by product experts. For a consumer who’s not perfectly aware of what they need, a product expert delivers serious value. They ensure the customer obtains the right product or service, and make the experience smoother, less stressful, and generally more enjoyable.

According to Yoder, this concept holds true for a wide range of products, but it’s particularly relevant for more complex offerings like computers. It’s difficult for even a well-informed customer to feel fully confident knowing what they’re looking for with this sort of product, and equally hard determining if a given model meets the requirements. A company that helps allay these concerns by providing guidance – Apple is a leader in this capacity – leaves customers more satisfied, even while charging more than its competitors.

Apple even goes so far as to call its product experts “Geniuses,” Yoder notes. The company not only benefits from this approach in terms of profit margins, but also by gaining a reputation that keeps customers loyal and draws the attention of new consumers who are eager for this level of service.

Improving the experience

With this in mind, the natural question for company decision-makers to ask themselves is how they can take advantage of this state of affairs themselves.

For starters, leaders need to determine what kind of expertise and guidance their customers are looking for. Only with this insight in hand can a company begin to train its employees – sales teams, contact center workers and beyond – to deliver a superior CX. Once the company has added this level of expertise and improved its service, it can begin to reap the benefits of creating happier customers. And when you do that, there’s no limit to where you can go from there.

Photo Credit: loyalis.com

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About Daniel O'Callaghan

Daniel O'Callaghan
Dan O’Callaghan is a Solutions Guide at Toronto-based Telax. Like the entire team at Telax, Dan understands no two clients are identical and therefore involves himself in all aspects of the implementation from start to finish. In partnership with EarthLink, his commitment to help clients goes beyond just the technology and by providing them with on-going training and sharing best practices. Dan is a big fan of all sports Toronto (where Telax is based), and has some nationally published photography work.