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The Impact of Service on Sales

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Kaizen
Member
#1   Posted: 23 Feb 2009 03:45
 


Hi all, I'm new to the forum and think it looks fab. I hope you'll be able to help where others haven't been able to!

I am looking to find any research that shows that sales are helped by the level of service from non sales people.

Here's an example. If you go to an airport, are you any more likely to spend money while you're there if the check in and security experience is a positive one?

My gut feel is that the answer is yes but a client would like some proof!

Many thank in advance.

Richard

KarenSB
Member
#2   Posted: 23 Feb 2009 05:29
 


Hi Richard,

While I doubt my experience with TSA will open my wallet at the airport Hudson News, my gut feel is that research isn't necessary! I think the answer is a resounding, absolutely.

Disneyworld
Collection plates in churches
Grocery stores (if the stockers don't stay on top of things, would anyone ever buy produce?)

Simply every service based industry imaginable. Service technicians (copiers, air conditioners, auto repair, etc.) routinely increase the bottom line through service and they are non-sales personnel.

Janitorial/housekeeping...if they don't keep things clean and looking good, people won't go back (restaurants, hotels, etc).

Personally, I think the list is never-ending.

Hope this helps.
ksb

Kaizen
Member
#3   Posted: 2 Mar 2009 04:28
 


Thanks for the reply Karen. I completely agree.

The challenge from the client is that they believe they have a captive audience. If someone wants to fly from they have to from their nearest airport.

They don't make the link that check in and service experience will impact on the sales once they travellers are airside.

It's an interesting one!

All the best,

Richard

KarenSB
Member
#4   Posted: 2 Mar 2009 16:40
 


Ahhh! So the example was more than an example - they are an airline. The plot thickens! They are the ones responsible for the theory that their value-add is on-time departures as opposed to on-time arrivals! (Never minding that they struggle to hit either mark.)

Thus the quandry!

Of all industries, I've long felt that airlines don't get it, and they probably never will. I'm assuming that you've already googled the heck out of this, looking for stats. I'll join the search.

In a way, they are right. When you have a monopoly, you don't have to play nice. Look at all us willing sheep...shelling out $3+ for a lousy bag of peanuts once they cut us off from food. Look at Ryan Air, now wanting to charge a toll for using the bathroom facilities. We deride the industry, protest the unending additional fees for everything, yet we continue to purchase tickets.

Yes, Richard, it is an interesting one. I try for optimism rather than pessimism, but am falling on the wrong side on this one. Maybe though, there's one thing. Keep tabs on "Sully" Sullenberger...the United pilot who landed in the Hudson. Last I heard, he was offered double salary by Virgin, and captain-ship of their space program. Where he goes, I believe travelers will follow. Who wouldn't feel safe with him at the helm? Should he switch to Virgin, how many United customers will follow? He's rather the definition of service paving the way for sales these days.

Karen

KarenSB
Member
#5   Posted: 4 Mar 2009 16:16
 


Richerd,

Here's a link to an abstract of a Wiley study that I believe supports our gut feels and experiences:
http://www3.interscience.wiley.com/journal/119125004/abstract?CRETRY=1 &SRETRY=0

I've also just downloaded a Harris report (2008 U.S. Customer Experience Impact Report) replete with fascinating numbers. I found it with a google search of: does service impact sales

The stats in the second paragraph wowed me, then I saw a section entitled: Service Can Drive Revenue.

Now I need to sign off and go have a good read!

Karen

opentosuggestions
Member
#6   Posted: 1 Apr 2009 22:01
 


Hi Richard,

Nothing to back this up except my personal reaction to good/bad service. While I may not spend more if I get good service, I certainly will NOT SPEND ANYTHING if at all possible, if I encounter poor service. So, the service levels at check-in, etc. would most definitely impact upon my spending.

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