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Revealed: good service pays and poor service costs – it’s official

Our findings launched this week from YouGov research reveal that organisations that invest in service excellence are 54% more likely to receive repeat purchases from customers. Moreover, 47% of consumers will pay a premium for products or services where they believe they are likely to receive good service.


During the YouGov survey, 2,084 online respondents were also asked to name the brands they believed were best when it came to customer service and delivery. John Lewis ranked first for customer service, with Marks and Spencer and Amazon ranked second and third respectively; Tesco, Asda and Virgin also appeared in the top ten ranking brands.

Other results included:

  • 82% of respondents said they would tell other people about a bad experience, three times more than those who would tell others of a good experience
  • Of the 47% of respondents who would pay a premium for good service, 44% would pay a premium of 5% or more and 16% would pay a premium of 10% or more
  • On average respondents are willing to pay a 2.9% premium for excellent service

So what does this mean in terms of actual numbers? Using our Value of Service Calculator, below are the financial values that charging a premium for excellent service equates to for a typical FTSE100 company (£7bn t/o).

Premium % for service excellence Value of premium
2.9% (average respondents are willing to pay) £203m
5% £350m
10% £700m


The YouGov survey further demonstrates that investment in customer service has a huge impact on an organisation’s revenues and brand perception. Most notably, consumers are willing to spend more in a recession, which is something all companies can learn from.


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