Consumers have little to no desire to trade customer service for lower prices.
One of the most interesting findings in the latest Accenture Global Consumer Survey study of 5,800 consumers in 17 countries was this:
More than half of global consumers (54%)
are not willing to compromise on levels of customer service,
produce options or product quality in exchange for lower prices.
Even more phenomenal, as we pointed out in this week's Monday Morning Marketing Memo on "Reasons Why Consumers Switch Service Providers," is that only 8% of respondents are willing to go without customer service, product options or product quality in exchange for lower prices. The other 38% did not feel strongly either way in response to the question: "I am will to accept lower levels of customer service if it ensures I get the lowest price."
Additionally, the percentage of consumers who identified price as the reason for selecting a new service provider declined from 75% in 2009 to just 57% in the most recent survey (Accenture has now conducted their Global Consumer Survey for six consecutive years).
It is obvious that corporations that reduce customer service delivery and staff in order to compete through lower prices are embarking on a misguided strategy. The road to customer loyalty is paved through excellent customer service, not cheap prices.