• by Tanya Gazdik , May 3, 2011

Consumers will spend more with companies that provide great service, according to the new American Express Global Customer Service Barometer, a survey conducted in the U.S. and nine other countries exploring attitudes and preferences toward customer service.

In a stronger economic environment, 70% of the Americans surveyed are willing to spend an average of 13% more with companies they believe provide excellent customer service. This is up substantially from 2010, when 58% of Americans said they would spend an average of 9% more with companies that deliver great service.

But despite the greater value Americans are placing on customer service, many businesses don't seem to be making the grade with consumers. In fact, 60% of Americans believe businesses haven't increased their focus on providing good customer service -- up from 55% in 2010. Among this group, 26% think companies are actually paying less attention to service.

Companies that have earned a reputation for service excellence understand that employees interacting with customers every day are the true ambassadors of their brands.

The key to delivering a great guest experience is listening and building the confidence of the employees to respond to the needs of the customer in a unique way every time, says Jim FitzGibbon, President Worldwide Hotel Operations, Four Seasons Hotels and Resorts.

"Now that more and more people choose to interact and share through social media networks, for example, not only do we have to listen in a different way, but the experience itself extends beyond the face-to-face interaction," FitzGibbon says in a release. "Whether at our hotels and resorts or online, having employees who feel empowered to embody the service excellence our brand stands for remains top priority."

Americans vote with their wallets when they encounter subpar service; 78% of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience. On the other hand, the promise of better customer service is a draw for shoppers: three in five Americans (59%) would try a new brand or company for a better service experience.

Yet Americans feel most companies are failing to get the message that service matters. Nearly two-thirds of consumers feel companies aren't paying enough attention to service: Two in five (42%) said companies are helpful but don't do anything extra to keep their business. One in five (22%) think companies take their business for granted.

People will tell others about their customer service experiences, both good and bad, with the bad news reaching more ears. Americans say they tell an average of nine people about good experiences, and nearly twice as many (16 people) about poor ones -- making every individual service interaction important for businesses.

In countries around the world, most consumers are willing to spend more with companies they believe provide excellent service -- with the average amount they are willing to spend ranging from 7% (Netherlands) to 22% (India) more. Australians and Canadians are willing to spend 12% more, while Mexicans will spend 11% more. Those in the U.K will spend 10% more for good service, while the French and Italians will spend 9% more. Germans will spend 8% more for a good experience.

However, as in the U.S., global consumers feel that businesses around the world aren't getting the message. In most markets, less than one-third of consumers feel businesses have increased their focus on customer service.