Customers are prepared to pay a premium for brands that they believe offer a better customer experience.
This is the finding of a new study conducted by Siegel & Gale, which noted that consumers are willing to fork out as much as four to six per cent more on a product if the all-round experience is enjoyable.
Across all industries and sectors, that could translate into $27 billion more, Siegel & Gale revealed.
In particular, health insurance brands have the potential to gain the most from improving their customer experience by offering greater transparency and simplicity in their products, says Brian Rafferty, global director of consumer insights for Siegel & Gale.
"People were willing to pay significantly more to get simpler communications," Mr Rafferty told Marketing Daily. "You hear a lot of complaints about health insurance premiums. But what they're really complaining about is paying for things that they're not clear about."
It follows recent comments from, Mike Jasser, the vice-president of business development at MarcParcValet, who told bizjournals.com that care, consideration and time need to be dedicated to customer service.
Posted by Richard Jones