Affluent Indians willing to pay premium for better customer service: Survey

Talking to customer service exec over a phone is most preferred mode of communication for customers

Affluent Indians are willing to pay a premium of up to 40% for a brand in return for better customer service, finds a survey instituted by American Express. Highlighting the significance of customer service experience in retaining affluent customers, two-third of those surveyed said they are likely to discontinue using a brand due to poor customer service.

The online survey was conducted by Kantar IMRB (on behalf of American Express) among 1,577 affluent Indians across Hyderabad, Chennai, Bangalore, Mumbai, Pune, Kolkata and Delhi/NCR in July this year. The aim of the survey was to gain insights on the role that customer service plays in influencing the choice of brand and loyalty. Those surveyed were defined on parameters such as ownership of credit card, type of TV, type of phone, cars owned, vacations in India and abroad, frequency of fine dining and frequency of air travel. 

Over half the respondents (53%) said they were willing to pay a premium for a brand, ranging from 20 to 40% in return for superior customer service. Of those surveyed 42% said that they were willing to pay a premium for prompt customer service.

Around 62% of those surveyed stated that customer service and availability of instantaneous issue-resolution across multiple platforms is a must-have digital feature to retain their loyalty to the brand.

Talking to a customer service representative over a phone call is the most preferred mode of communication for customers, followed by connecting through digital mediums such as email and online chat. 

Around 84% of the respondents said when they have a customer service issue they prefer to resolve it through the phone with a representative. Three-fourth of the respondents said they prefers online chat with a representative, while 64% seek answers to customer service issues online, rather than interacting with a representative. Two-third of those surveyed (66%) said that in case of poor customer service they will discontinue use of the brand. 

Manoj Adlakha, chief executive officer, American Express Banking Corp India noted that the survey highlights that trust, security and service are the key elements in building a differentiated experience to keep consumers loyal and invested in a brand.

The Kantar IMRB report noted that besides customer service, another aspect that influences customer retention is safeguarding the brand image from any negative reviews. “Social media and news play an important role in customers building their opinion about the product, service or brand,” the survey said.