Shoppers would spend more for good customer service, survey finds
Good customer service sells, according to a new study conducted by American Express.
American Express’ Global Customer Service Barometer discovered that 7-out-of-10 Americans are willing to pay an average of 13% more with companies they believe provide excellent customer service, compared with 58% of Americans who echoed this sentiment in 2010. But while Americans put a heavy emphasis on good customer service, most (60%) believed that companies haven’t stepped up their game to improve their focus on providing good customer service. Among them, 26% believed that companies are paying less attention to their customer service.
What’s more, nearly 8-out-of-10 consumers (78%) said they will bail on a transaction or opt not to make an intended purchase because of a poor service experience. American Express also noted that 2-in-5 (42%) consumers said companies are helpful but don’t do anything extra to keep their business, while 1-in-5 (22%) thought companies take their business for granted.
However, 3-in-5 Americans (59%) that have a better service experience said they would try a new brand or company.
For adult shoppers seeking a company that puts a great emphasis on customer service, 81% of respondents said that small businesses are the way to go.
"Getting service right is more than just a nice-to-do; it’s a must-do," said Jim Bush, American Express EVP world service. "American consumers are willing to spend more with companies that provide outstanding service, and they will also tell, on average, twice as many people about bad service than they [will] about good service. Ultimately, great service can drive sales and customer loyalty."
The American Express Global Customer Service Barometer research was completed online among a random sample of 1,000 U.S. consumers ages 18 years and older.
Approximately 70% of those
Approximately 70% of those questioned state that the positive customer service experience is very important in making the buying decision. Then just under 60% say they might still go with a new product or another company. What this means is that we have to be at the top of our game always and never take any customer for granted. It's the new "normal"; but not really new at all. Incidentally, this survey comes from American Express, and they really live what they claim. When they receive a challenge from a customer, they refer to "our mutual customer" as they mediate and seek resolution. Their follow up is exceptional. Customer service with all parties is their whole approach.
Canadian Tire to purchase sporting goods chain
Canadian Tire Corp. has signed an agreement to purchase The Forzani Group (FGL), Canada’s leading sporting goods retailer with 500 outlets across the country and revenues of $1.4 billion a year. The all-cash deal, in which Canadian Tire will purchase all the outstanding shares of FGL for $26.50 per share, has the support of the FDL board of directors, which is recommending to its shareholders to tender their shares to the offer. It is expected to close in the third quarter of 2011 pending regulatory approval.
In its announcement, Canadian Tire said it will gain from having access to an expanded customer base with FGL’s retail banners, including mall-based shoppers and the important 18-to-35-year-old customer segment.
More than 70% of FGL’s sales are in athletic apparel and footwear, with the balance of sales in sporting hard goods that complement Canadian Tire’s assortment with very little overlap, according to the company.
“Canadian Tire is today strengthening its credibility as Canada’s ultimate authority in sports,” said Stephen Wetmore, president and CEO of Canadian Tire. “The acquisition of retail banners like Sport Chek and Sports Experts is a natural extension of our core sports business.”
The offer is not subject to a financing condition, according to Canadian Tire. It is anticipated the $771 million acquisition (excluding FGL debt and shares already owned by Canadian Tire) will be financed with $500 million of cash on hand and the balance with short-term financing. Canadian Tire expects to return to pre-acquisition leverage levels within 18 to 24 months of closing the transaction.
Canadian Tire intends to operate the FGL retail banners as a separate business unit, similar to Mark’s and Canadian Tire Financial Services.
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Moen appoints marketing exec
Kitchen and bath supplier Moen has announced the promotion of Mark Knurek to the position of director of marketing and product development for its commercial business unit.
In his new role, Knurek will be responsible for developing and championing the strategic direction of Moen Commercial’s new product development process, focusing on products for heavy-duty construction, as well as those that meet WaterSense criteria for performance and water efficiency. In addition, he will lead Moen Commercial’s marketing programs, including advertising, public relations and direct marketing.
Prior to his new role, Knurek worked for Moen’s wholesale business unit. He most recently served as senior brand manager for Moen’s ShowHouse and Cleveland Faucet Group (CFG) brands. Previously, he was a senior product manager supporting marketing innovation with products such as Moen’s first digital bath product, ioDIGITAL, as well as several other products in the residential segment. Knurek also served as a group project manager for the wholesale business unit, where he led cross-functional teams to bring new products to market.
Knurek began his career at Eaton Corp. and also worked at Shiloh Industries prior to joining Moen in 2002.
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