Executive Briefings

How Much is Good Customer Service Worth? Billions, Possibly.

Excellent online customer service may be worth $17.3bn in 2010, according to a new Ovum survey commissioned by StellaService.

That's the round figure for the 10.7-percent premium the report suggests customers are willing to pay for good customer service.

The survey was conducted across multiple categories -- financial services, healthcare, utilities and retail -- including both online and brick-and-mortar stores. The total value of great customer service across all categories, both online and off, was found to be $268bn per year, or a 9.7-percent premium.

That online consumers are willing to pay an additional percentage isn't surprising, Jordy Leiser, cofounder and CEO of StellaService. The total value of excellent customer service for e-tailers is what he found compelling. "It was quite a shock for us, actually, especially considering that so few companies meet the criteria for offering this level of service."

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Excellent online customer service may be worth $17.3bn in 2010, according to a new Ovum survey commissioned by StellaService.

That's the round figure for the 10.7-percent premium the report suggests customers are willing to pay for good customer service.

The survey was conducted across multiple categories -- financial services, healthcare, utilities and retail -- including both online and brick-and-mortar stores. The total value of great customer service across all categories, both online and off, was found to be $268bn per year, or a 9.7-percent premium.

That online consumers are willing to pay an additional percentage isn't surprising, Jordy Leiser, cofounder and CEO of StellaService. The total value of excellent customer service for e-tailers is what he found compelling. "It was quite a shock for us, actually, especially considering that so few companies meet the criteria for offering this level of service."

Read Full Article