Improving Customer Service May Be More Cost Effective Than Investing In More Brand Loyalty Advertising

Vocal Laboratories Study Shows the Impact of One Phone Call to Customer Service

EDEN PRAIRIE, Minn., November 22, 2002 - Vocal Laboratories, Inc. today unveiled new data proving the value of a quality customer service experience. VocaLabs conducted surveys involving the inbound customer call centers of five major companies and over 2,700 customer contacts with the following results:

  • The findings revealed that after only one outstanding call to customer service, customers were 77% more likely to pay a premium to do business with that company.
  • After a single outstanding call, 88% more callers said they were likely to make a purchase from that company in the next 12 months; after a poor experience 56% fewer callers were likely to make a purchase.
  • After a single positive contact, there was a surprising 417% increase in the number of callers who believed that the company was actually better than its advertising suggests.

Most companies want to deliver high quality customer service cost effectively. This data shows that investing in better customer service can be more cost effective than investing in advertising. These results were just as true for automated customer service as live agents, and prove the importance of ensuring that all callers receive a consistent, high quality experience.

"In the past, quantifying the impact of good or bad customer service has been difficult. Now, by asking the right questions of the right audience, we can measure and quantify the revenue impact of client care. These results show that even a single outstanding contact has a greater impact than expected." commented Rick Rappe, VP of Sales of Vocal Laboratories.

"Intuitively, everyone understands that better customer service leads to more loyal customers," commented Peter U. Leppik, CEO of Vocal Laboratories. "VocaLabs has now given companies the ability to directly measure both the quality of their customer service, and the impact it has on the bottom line. VocaLabs can also evaluate a company's customer service before it goes live, allowing our clients to ensure they are providing top-notch service from day one."

About This Survey

Vocal Laboratories surveyed over 2,700 callers before and after they called one of five large consumer-oriented companies. Callers were surveyed about their opinions of the company, their likelihood to purchase in the next 12 months, their willingness to pay a premium price, their opinion of the company's advertising, and the quality of their experience calling the company. Individual survey responses were correlated to call recordings, and categorized by the caller's overall satisfaction with the call.

About Vocal Laboratories

VocaLabs provides feedback about telephone-based services to Fortune 1000 companies, telecommunications carriers, industry consultants, and equipment vendors. We use a panel of thousands of people we've recruited from all walks of life to quickly and cost-effectively evaluate the quality of call centers, voice-response systems, and speech-recognition applications.

The VocaLabs Survey process helps customers gain statistical intelligence on caller issues and problematic applications. This extensive data gathering process helps customers gain the information to ensure customer retention, increased revenues, market intelligence to deliver the highest level of customer satisfaction. For VocaLabs news and information, please go to http://www.vocalabs.com.