The recession has caused most consumers to become bargain shoppers, and businesses have responded with unprecedented discount programs, promotions and giveaways. But consumers tell Angie’s List that they aren’t shopping on price alone, and they’re finding an important demand to be largely unmet.
Nearly 70 percent of Angie’s List members responding to a recent nationwide poll on customer service trends said they are demanding better customer service, better prices or both before they part with their hard-earned dollars. But only 33 percent said customer service has improved since the recession.
“Unfortunately, when a business is struggling to stay afloat, it tends to let staff go and that has a direct and negative effect on customer service,” says Angie Hicks, founder of Angie’s List (www.angieslist.com), the nation’s leading provider of consumer ratings on local service companies. “Consumers are demanding bargains, but many of them feel like they are getting bargain-basement customer service to go with it.”
According to the poll, consumers would like businesses to be more responsive to their customers’ needs, to communicate better and to offer more personalized attention. The top-three customer service gripes were slow service, poor follow-up and a lack of responsiveness.
“We’re all anxious to see if the economy really is turning around, but providing good service is a demand that can be met and could be the difference between a business making it through or not,” Hicks said.
Businesses might be getting the message. A separate survey, which focused on companies already rated on Angie’s List, showed that 60 percent of business owners have noticed an increase in customers’ expectations this year compared to last. Nearly 70 percent of those business owners said they are working harder than ever to make their customers happy.
“There’s no better time for companies to distinguish themselves from their competition by competing on price, as well as customer service, Hicks said. “A good experience for the customer makes it more likely that customer brings repeat business. A bad – and uncorrected – experience could mean the customer will never return. Worse, it could prompt the customer to spread the word for others to stay away.”
Hicks is quick to caution consumers against making hiring or purchase decisions on price alone.
“Many businesses have already cut prices as deep as they can but are upping the customer service and still providing good quality work,” Hicks said. “Don’t be dazzled by a price that seems too good to be true because it probably is. Ask yourself if the quality of the work will match that low price. What about licensing, insurance and bonding? And never ignore a gut feeling about whether to hire a particular service provider.”
Hicks encouraged businesses to monitor and respond, when appropriate, to online reviews and ratings as a means to understand what customers want and to quickly identify any customer service issues.
“When a company reaches out to address a customer’s negative experience, it can turn that situation around and perhaps earn a customer for life,” she said.
*1,002 Angie’s List members and 592 service companies rated on Angie’s List took this poll. Responses are representative of Angie’s List members but not the general public.
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Angie’s List is where thousands of consumers share their ratings and reviews on local contractors and companies in more than 425 different categories. Currently, more than 750,000 consumers across the U.S. rely on Angie’s List to help them find the right contractor or company for the job they need done. Members have unlimited access to the list via Internet or phone; receive the award-winning Angie’s List magazine, which includes articles on home improvement and maintenance, consumer trends and scam alerts; and they can utilize the Angie’s List complaint resolution service. Get more information about Angie’s List at http://www.angieslist.com View the latest Angie's List News Releases in our Press Center and read Angie’s blog at http://www.angiehicksblog.com.