2012 Global Customer Service

Barometer

Findings in India

A research report

prepared for:

2 © echo

Research Method

This research was completed online among a random sample of

consumers aged 18+. A total of 1,007 interviews were completed.

Interviewing was conducted by Echo Research between February

22 and 29, 2012.

The overall results have a margin of error of +/- 3.1 percentage

points at the 95% level of confidence.

3

21%

65%

12%

22%

66%

11%

22%

65%

11%

0% 20% 40% 60% 80% 100%

Businesses pay less attention to providing good customer service

Businesses have increased their focus on providing good customer service

Businesses' attitudes towards customer service have not changed

2012

2011

2010

The majority of consumers think businesses are paying

more attention to providing good customer service

© echo

Nearly two thirds (65%) of consumers believe businesses, in the current economy, ‘have

increased their focus on providing good customer service’. This is largely the same as

consumer opinion in 2011 and 2010 (66% and 65%, respectively).

One in five (22%) consumers believe businesses ‘pay less attention to providing good

customer service’, unchanged from the past two years. As in the past, one in ten (11%)

consumers said that ‘businesses’ attitudes towards customer service have not changed’.

Q.T3

In this current economy, do you think that …?

Not Shown: 2% or less Not Sure

4

9%

24%

65%

11%

25%

61%

12%

19%

65%

0% 20% 40% 60% 80% 100%

Exceed your expectations

Miss your expectations

Meet your expectations

2012

2011

2010

More consumers say that companies meet their

customer service expectations

© echo

Nearly two thirds (65%) of consumers say their customer service experiences ‘meet their

expectations’, back to 2010 levels (65%) and significantly higher than seen in 2011 (61%).

Similar to 2010 and 2011, roughly one in ten (12%) said that the customer service

experiences they have with companies usually ‘exceed their expectations’ (11% in 2011; 9%

in 2010). Conversely, 19% of consumers in 2012 say their customer service experiences

‘miss their expectations’, significantly fewer than the one in four (25%) consumers who felt

that way in 2011 and 2010 (24%).

Q.T2

In general, would you say the

customer service experiences you

have with companies usually…?

Not Shown: 4% or less Not Sure

Significantly higher/lower than previous

year at the 95% confidence level.

5

2%

9%

48%

39%

4%

9%

34%

45%

4%

7%

32%

45%

0% 20% 40% 60% 80% 100%

Don't seem to care about your business

Take your business for granted

Are helpful, but don't do anything extra to keep your business

Value your business and will go the extra mile for you

2012

2011

2010

Consumers believe that companies are helpful and will

go the extra mile to keep their business

© echo

A little less than half of consumers (45%), in both 2012 and 2011, feel that companies ‘value

their business and will go the extra mile for them,’ significantly higher than in 2010 (39%).

About a third say that companies ‘are helpful, but don’t do anything extra to keep their

business’ (32%). Fewer in than one in ten think that companies ‘take their business for

granted’ (7%) or ‘don’t seem to care about their business’ (4%).

Q.T1

In general, do you feel that companies…?

Not Shown: 12% or less Not Sure

Significantly higher/lower than previous

year at the 95% confidence level.

6

5%

5%

40%

25%

25%

0% 10% 20% 30% 40% 50% 60%

2011

6%

8%

40%

21%

27%

0% 10% 20% 30% 40% 50% 60%

Don't know

Not willing to spend more

20% or more

10% more

5% more

2012

8%

17%

13%

21%

42%

0% 10% 20% 30% 40% 50% 60%

2010

In 2012, consumers may be less likely to spend more

for excellent service

© echo

Significantly fewer consumers in 2012 say they have ‘spent more with a company because of

a history of positive customer service experiences’ (74% in 2012; 80% in 2011).

Fewer consumers than in 2011, although still a large majority, say they are willing to spend

more with a company they believe provides excellent customer service (87% in 2012; 90% in

2011). As in 2011, they are willing to spend 22% more, on average.

Willing to

spend more

90%

Average: 22%

Have spent

more

80%

Q.T4/T5

Willing to

spend more

76%

Average: 11%

Have spent

more

67%

How much more would you be willing to spend with a company

that you believe provides excellent customer service?

Willing to

spend more

87%

Average: 22%

Have spent

more

74%

Significantly higher/lower than previous

year at the 95% confidence level.

7

10%

16%

16%

24%

34%

11%

14%

18%

26%

32%

0% 10% 20% 30% 40% 50% 60%

I refuse to do business with a company that provides poor service

Companies who provide excellent service have earned my business

I only spend money with companies who provide excellent service

I place a high value on excellent customer service

Excellent service is worth spending more to me

2012

2011

10%

10%

33%

37%

9%

17%

30%

36%

0% 10% 20% 30% 40% 50% 60%

My expenses have gone up

I can't afford to

Prices for goods and services are already too

high

I expect excellent service and should not have to

spend more

Consumers value excellent service – most are willing to

pay for it, while some expect it

© echo

Those who are willing to spend more with a company they believe provides excellent customer

service ‘place a high value on excellent customer service’ (26%), and believe that ‘excellent

service is worth spending more to them’ (32%). Greater than one in ten consumers ‘only spend

money with companies who provide excellent service (18%), feel that ‘companies who provide

excellent service have earned their business’ (14%) and ‘refuse to do business with a company

that provides poor service’ (11%).

For those not willing to spend more with a company they believe provides excellent customer

service, more than a third (36%) ‘expect excellent service’ and feel they ‘should not have to spend

more’. Three in ten (30%) feel that ‘prices for goods and services are already too high’, and 17%

say ‘they can’t afford to’.

Q.T5A Respondents not willing to spend more (n=136/102)

Q.T5B Respondents willing to spend more (n=871/900)

Why would you be willing

to spend more with a company that

provides excellent customer service?

Why would you not be willing

to spend more with a company that

provides excellent customer service?

Not Shown: 10% or less None of these Not Shown: <1% None of these

8

56%

54%

36%

32%

6%

10%

2%

4%

0% 20% 40% 60% 80% 100%

All the time Sometimes Rarely Never

67%

66%

31%

31%

1%

2%

1%

1%

0% 20% 40% 60% 80% 100%

2011

2012

All the time Sometimes Rarely Never

Consumers are telling more people about their

customer service experiences

© echo

More than nine in ten consumers talk about their good customer service experiences, at least

some of the time (97%), while two thirds (66%) tell someone about them all of the time, similar

to 2011 (98% and 67%, respectively). When it comes to poor customer service experiences,

86% of consumers talk about them (compared to 92% in 2011), 54% of them all the time (56%

in 2011).

Compared to last year, consumers tell significantly more people on average about their

customer service experiences, both good and bad. On average, they tell 44 people about their

good experiences (up from 32 in 2011), and 47 people about their bad experiences (up from 35

in 2011).

44

Avg # of

people they tell

32

Q.N6/6a/6b/6c

How often do you tell other people

about your good experience?

46

Avg # of

people they tell

35

How often do you tell other people

about your poor experience?

Significantly higher/lower than previous

year at the 95% confidence level.

9

Yes, 71%

No, 29%

In the past year, have you intended to conduct a business transaction or make a purchase but decided not to based on a poor customer service experience?

Poor service can lead to lost sales

© echo

In the past year, seven in ten (71%) consumers intended to conduct a business

transaction or make a purchase, but decided not to based on a poor service experience.

Q.N13

10

Yes, 64%

No, 36%

In the past year, have you lost your temper with a customer service professional?

Consumers lose their temper with customer service

representatives

© echo

Close to two thirds of consumers lost their temper with a customer service professional in

the past year (64%).

Of those who lost their temper, six in ten (61%) ‘insisted on speaking with a supervisor’,

two in five (41%) ‘demanded to know the customer service professional’s name’, and

nearly two in five (37%) ‘threatened to switch to a competitor’. One third (34%) ‘hung up

the phone’, three in ten (29%) ‘talked about their experience via social media’, one in five

(18%) ‘stormed out of the store’, and one in ten (12%) ‘used profanity’.

Q.N14

Q.N14a Respondents who have lost their temper in the past year (n=641)

12%

18%

29%

34%

37%

41%

61%

0% 20% 40% 60% 80% 100%

Used profanity

Stormed out of the store

Talked about my experience via social media

Hung up the phone

Threatened to switch to a competitor

Demanded to know the customer service professional's name

Insisted on speaking with a supervisor

Which of the following have you done when you lost your temper with a customer service professional?

Not Shown: 4% None of these

11

12%

12%

12%

14%

15%

16%

21%

0% 20% 40% 60%

Social networking site

Online chat/instant messaging

Face to face

Speaking with a 'real' person on the phone

Text message

Using an automated voice response system on the phone

Company website or email

A simple inquiry (such as locating a product or checking an account balance)

Consumers’ preferred channel for customer service inquiries

varies depending on the complexity of the inquiry

© echo

Q.N12a/b/c

For simple inquiries, such as locating a product or checking an account balance, one out of five (21%)

consumers prefer using a company website or email, followed by using an automated voice response

system on the phone (16%), or text message (15%).

For a more complex inquiry, such as returning a product or getting assistance with a product issue, one

in four (25%) consumers prefer speaking with a ‘real’ person on the phone, followed by using a company

website or email (18%), and a ‘face to face’ conversation (15%).

For even more difficult or complicated inquiries, close to three in ten consumers (28%) prefer a face to

face interaction, one in five (22%) prefer speaking with a ‘real’ person on the phone, and 13% prefer a

company website or email.

10%

11%

15%

25%

9%

12%

18%

0% 20% 40% 60%

A more complex inquiry (such as returning a product or

getting assistance with a product issue)

9%

9%

28%

22%

8%

11%

13%

0% 20% 40% 60%

A difficult inquiry (such as making a complaint or

disputing a charge)

For each of the following types of customer service

inquiries, which is your

preferred channel for reaching out to companies?

12

7%

7%

10%

14%

17%

20%

22%

0% 20% 40% 60%

Being forced into one channel (email, phone, etc.)

Being pressured to purchase something

Finding out company policies and pricing have changed without notice

Having to continue to follow up to check if your issue has been resolved

Being shuffled from rep to rep with no resolution of your issue

A rude or unresponsive customer service rep

Waiting too long to have an inquiry resolved

Consumers desire a short waiting time to resolve an

inquiry, above all

© echo

One in five consumers (22%) cite ‘waiting too long to have an inquiry resolved’ as the most

likely customer service issue to influence them to switch brands or companies. Almost as

many (20%) cite ‘a rude or unresponsive customer service representative’, followed by ‘being

shuffled from representative to representative with no resolution of your issue’ (17%).

Q.N15

Which of the following customer service issues

would be most likely to influence you to

switch brands or companies?

Not Shown: 4% None of these

13

Consumers are generally patient when it comes to

their willingness to wait for customer service

© echo

On average, consumers are willing to wait a maximum of 16 minutes on hold when they

contact a customer service center by telephone. Two in five (41%) are only willing to wait

less than 5 minutes, while 17% are willing to wait one hour or more.

In person, consumers are willing to wait an average of 17 minutes for customer service

help, slightly more than on the phone. Three in ten (28%) are willing to wait less than five

minutes, while 16% are willing to wait one hour or more.

Q.N16/N18

Less than 5 minutes, 41%

5 min >10 min, 15%

10 min >15 min, 9%

15 min >30 min, 11%

30 min >1 hour, 7%

1 hour or more, 17%

When you contact a customer service center by phone, what is the maximum amount of time you are

willing to wait on hold?

Avg. =

16 min

Less than 5 minutes, 28%

5 min >10 min, 17%

10 min >15 min, 18%

15 min >30 min, 15%

30 min >1 hour, 6%

1 hour or more, 16%

What is the maximum amount of time you are willing to wait for help from customer service in-person

(ex., at a bank, retail store, service provider or restaurant)?

Avg. =

17 min

14

68%

69%

24%

22%

8%

9%

0% 20% 40% 60% 80% 100%

In-person

On the phone

Improved Have Not Changed Worsened

Customer service wait times have generally improved

© echo

More than two thirds (69%) of consumers feel that companies have generally improved in terms

of the amount of time they are being left on hold during a typical customer service phone call.

Less than one in ten (9%) feel that companies have worsened in this respect, one in five (22%)

feel they have not changed.

More than two thirds (68%) of consumers feel that companies have generally improved in terms

of the amount of time they wait for customer service in person. Less than one in ten (8%) feel

that companies have worsened in this respect, one in four (24%) feel they have not changed.

Q.N17/N19

In the past year, do you believe that companies have generally

improved or worsened in terms of the amount of time you feel you have spent

waiting for help from customer service…?

15

Yes, 54% No, 46%

In the past year, have you utilized social media to get a customer service response?

Social media is a common channel for consumers

seeking a customer service response

© echo

A little more than half (54%) of consumers say they have utilized social media to get a

customer service response.

Those who have used social media for customer service have done so for a variety of

reasons, including ‘sharing information about their service experience with a broader

audience’ (50%), ‘asking questions of other users about how to get better service or have

a better experience with a company’ (46%), ‘seeking recommendations from others about

great service establishments‘ (41%), ‘praising a company for a great service experience’

(40%), and ‘seeking an actual response from a company to help them with a service issue’

(39%).

Q.N20/N21

Respondents who have utilized social media to get a customer service response in past year (n=540)

31%

32%

39%

40%

41%

46%

50%

0% 20% 40% 60% 80% 100%

Praise an individual for providing a great service experience

Vent frustration with a bad customer service experience

Seek a response from a company to help you with a service issue

Praise a company for a great service experience

Seek rec. from others about great service establishments

Ask questions of other users about how to get better service

Share information about your service experience with a broader audience

Which of the following are reasons you use social media when it comes to customer service?

Not Shown: 2% None of these

16

Resolution of customer service issues via social media

is generally good and consumers see improvement

© echo

More than a third (37%) of consumers who have used social media for customer service

inquiries say they always get an answer or have their complaint resolved. One in ten

(14%), however, say they rarely or never get an answer or have their complaint resolved.

Four in five (80%) consumers feel that companies have generally improved their response

times over social media channels. Almost one in five (17%) say they have not changed,

while only 2% say response times over social media have worsened.

Q.N22/N23

Respondents who have utilized social media to get a customer service response in past year (n=540)

Always, 37%

Sometimes, 50%

Rarely, 12% Never, 2%

When you use social media to complain about a customer service issue, how often do you feel you get an answer or

your complaint is resolved by the company?

Improved, 80%

Have not changed, 17%

Worsened, 2%

In the past year, have companies generally improved or worsened in terms of how quickly you feel they respond to

you over social media channels surrounding a general inquiry or complaint?

17

37%

40%

41%

38%

40%

39%

0% 20% 40% 60% 80% 100%

They know their business/product better than large companies

They understand their customer better than large companies

They provide a more personal customer service experience than large

companies

Based on your experience, how much do you agree or disagree that each of the following statements accurately describes customer service in small business?

Consumers say small businesses provide more personal service and

understand both their business and customers better than large companies

© echo

Four in five (80%) agree small, independently or locally-owned businesses ‘provide a more

personal customer service experience’, with two in five (41%) strongly agreeing with this

statement. Four in five (80%) also feel small businesses ‘understand their customer better’

than large companies, with two in five (40%) strongly agreeing. Three quarters (75%) feel

small businesses ‘know their business/product better’, with more than a third (37%)

strongly agreeing.

Q.N24

Agree

80%

80%

75%

18

Consumers willing to spend more for excellent customer service

have no preference between small businesses and large companies

© echo

Comparing a small independently-owned business and a large company that both provide

excellent customer service, a little more than a third (36%) of consumers who are willing to

spend more with a company that provides excellent customer service are willing to spend

more with a large company compared to a small business. Another third (34%) are willing

to spend more with a small business over a large company, three in ten (30%) state there

is ‘no difference in their willingness to spend more for excellent customer service.’

Q.T5C

Respondents willing to spend more with a company that they believe provides excellent customer service (n=871)

Willing to spend more with a small

business, 34%

Willing to spend more with a large

company, 36%

No difference, 30%

Considering a small independently-owned business and large company that both provide excellent customer service –

which type of company are you willing to spend more with?

19

Consumers believe hospitality and luxury brand

industries excel in customer service

© echo

The hospitality industry (e.g., hotels, motels, etc.) and luxury brands rate highest in the

customer service areas consumers were asked about, with the retail and casual dining

industries closely following.

Q.N7-N11

77%

80%

73%

69%

75%

75%

68%

63%

77%

78%

71%

68%

80%

81%

75%

72%

77%

78%

71%

67%

0% 20% 40% 60% 80% 100%

You have spent more with a company because of a history of positive customer service experiences

Have increased their focus on providing good customer service

Values your business and will go the extra mile for you

Customer service exceeds your expectations

Casual Dining

Hospitality

Retail

Travel

Luxury Brand

% Who Agree the Statement Describes

Customer Service in the Industry