Let’s start by getting the exceptions out of the way. You can safely ignore the following advice if your product or service is considerably cheaper than competition
or you have a monopoly
In these cases, you can do pretty much whatever you want and the customers will still come back to you even if they were poorly treated. That is until a new competition emerges and eventually steals all of your customers, one by one.
These customers are just that – customers. They are not loyal to you by any means. They will not think twice when they are offered the same deal from a different company. They will gladly jump the ship.
According to a study by Oracle, 86% of customers will pay more for a better customer experience.
But turn that around, offer a great customer experience and they will subconsciously ignore any offers from the competition.
It’s not in their nature to try and gamble with a different product when they are already happy. They form strong bonds with companies that make them feel happy and can be easily persuaded to spend more money where they are being appreciated and treated as fellow human beings.
Harvard Business Review has published a study which states