85% of survey respondents who had a bad experience with a company also told their friends and colleagues about it

Here are some highlights from a survey by Convergys:

The late ’90s mantra of “Show me the money” has morphed into “Show me the value,” reflecting a new focus by consumers hungry for value in all its forms, according to Convergys’ recently completed 2010 Consumer Scorecard Research study *. UK consumers want the companies with which they do business to value them, value their time, value their money, and value their preferences, say the study findings, released today by Convergys.

“Today’s consumer expectations are clear. They expect good value for their money and timely acknowledgement and resolution of their issues by knowledgeable employees,” said Jim Boyce, President, Global Sales and Services for Convergys. “It is more apparent than ever that consumers are willing to take their business elsewhere when their needs are not met. At the same time, companies that have the customer service mechanisms in place to give their customers what they want are the companies that will retain and even grow their market share.”

– Value my money: Recession-weary consumers are not just looking for the lowest cost, but the best value in their customer transactions. 64% of survey respondents chose “good value for the money” as the second most important customer service attribute, up significantly from 2008. 30% of respondents rated reliable service as more important than price in their definition of what constitutes “good value for money.” Only 5% of customers defined good value as “paying the lowest price.”

Despite consumers’ clear preferences for value and efficient issue resolution, bad customer experiences continue to frustrate consumers, 51% of whom reported having a bad experience with a company, a slight decrease from 2008. In response, today’s value-minded consumer is more likely to speak with his or her wallet: 49% of the survey respondents who had a bad experience reported that they stopped doing business with that company, up from 44% in 2008.

Those who stay are more likely to seek and expect resolution from a company when they do not receive the service and value they expect. Survey respondents reported that they informed companies of their bad experiences 66% of the time, up from 63% in 2008. Companies that were not equipped to resolve or respond to customer complaints paid the price in customer defections. 59% of survey respondents who reported a bad experience and did not receive a response from the company stopped doing business with the offending party, as did 53% of respondents who received a response without resolution.

85% of survey respondents who had a bad experience with a company also told their friends and colleagues about it, spreading the word through face-to-face chats, e-mails, text messages and social media, which has immense power to amplify the voice of the frustrated consumer widely among a company’s customers and potential customers. Interestingly, this trend did not belong just to the social media savvy Millennial, but stretched across all of the age groups surveyed.

Today’s Lagniappe (a little something extra) – Speaking of value . . . will it blend?

DEAL is no longer a bad four letter word. It’s a badge.

One of the things that struck me when recently listening to a podcast was the premise that ‘value was the new black’.  Today’s economy is forcing both brands and consumers towards a ‘value’ model.

Consumers are expecting more value.  According to the 2009 Brand Keys Customer Loyalty Index, successful brands are those that stand out because consumers think of them as valuable.  They don’t see the term value as a synonym for “cheap.” One of the key findings of the Index is that consumer expectations regarding brand value increased 20% this year versus 2008.

Brandkeys analyzed the likely consumer values, needs and expectations for the next 12-18 months and offered the following trends:

Value is the new black: Consumer spending, even on sale items, will continue to be replaced by a reason-to-buy at all. This may spell trouble for brands with no authentic meaning, whether high-end or low.

Brand differentiation is brand value: The unique meaning of a brand will increase in importance as generic features continue to propagate in the brand landscape. Awareness as a meaningful market force has long been obsolete, and differentiation will be critical for sales and profitability.

Consumer expectations are growing: Brands are barely keeping up with consumer expectations now. Every day consumers adopt and devour the latest technologies and innovations, and hunger for more. Smarter marketers will identify and capitalize on unmet expectations. Those brands that understand where the strongest expectations exist will be the brands that survive and prosper.

It’s not just buzz: Conversation and community is increasingly important, and if consumers trust the community, they will extend trust to the brand. This means not just word of mouth, but the right word of mouth within the community. This has significant implications for future of customer service.

Consumers talk with each other before talking with brands: Social networking and exchange of information outside of the brand space will increase. This – at least in theory – will mean more opportunities for brands to get involved in these spaces and meet customers where they are.

One of the easiest ways you can add value to your offering is by creating a ‘purple goldfish’ or marketing lagniappe.