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Rising Inflation Increases Consumers' Expectations of the Customer Experience
With rising inflation, consumers and businesses alike are paying more for the products they need. Manufacturers are seeing their own costs rise, and rather than cutting into their profit margin, they are passing the costs onto consumers. But with consumers paying inflation premiums for the things they need, they are expecting to get better customer service for their extra money. This is increasing expectations for businesses: customers who pay more and get lackluster service are unlikely to remain customers in the future.
According to a new study commissioned by AI-powered conversational intelligence company Invoca, inflation is definitely increasing the expectation of excellent customer service. The report, titled, “Invoca's 2022 Buyer Experience Benchmark Report,” examines how consumers' expectations stack up to their brand experiences when they make high-stakes purchases such as buying cars, taking on home improvement projects, and going on vacations. The study found that more than three-quarters of respondents (76 percent) said they would stop doing business with a company after just one bad experience. In comparison, 63 percent said they will still pay more for great customer service.
The research found that customers are being more cautious and investigative before making large purchases. Slightly more (38 percent) consumers reported making a high stakes purchase in 2022 than in last year's survey (35 percent). Over 70 percent of respondents say that inflation has affected their large purchasing decisions and timelines, and more than half (58 percent) reported being slightly less likely or much less likely to purchase at all due to inflation. Rising prices have not significantly slowed consumer demand for products and services, but they have increased their demand for superior customer service.
"Inflation is putting pressure on consumers who have to pay more for most everything, so they rightfully expect more for their money and will not tolerate poorly executed buying experiences," said Jennifer Lovette, SVP of Customer Success of Invoca. "When someone calls your business, they're ready to buy and will be immediately turned off if any human-to-human interaction with your brand is not stellar—the phone call is the face of your brand and providing a great call experience is one of the best ways to drive loyalty and customer lifetime value."
Edited by Greg Tavarez