Customer loyalty will be the reward in tight economic times for companies providing best service. ThatÍs the result of a new study investigating what impact the current economic situation will have on consumer spending and customer service in the run-up to Christmas.

The survey, conducted by StollzNow Research and commissioned by RightNow® Technologies, polled 500 Australian adults and found that even in an economic downturn, 28 per cent of consumers will remain loyal to companies that provide them with the best service.

Countering that, 47 per cent of all respondents had suffered a negative customer experience in the last six months, 79 per cent of consumers have stopped doing business with an organisation because of a bad experience, and 71 per cent tell others about their negative customer experiences with the main aim (69 per cent) being to prevent other consumers doing business with the company at fault.

Asked about their online, retail and Christmas spending plans, Australian indicated that 35 per cent of them have already decreased both online and retail spending, in the next six months 35 per cent are likely to decrease spending in retailers and 29 per cent will decrease online spending. Thirty six per cent will buy the same number of Christmas presents as last year but at a lower spend per person while 27 per cent will try to buy fewer presents.

Commenting on the surveyÍs findings, Brett Waters, RightNowÍs vice president, Asia Pacific-South, said ñWhat companies need to remember is that while competitive prices may seem like the short-term fix to satisfying customers, longer term, customer care strategies, which focus on delivering good customer experiences, will ensure customers remain loyal through rough trading environments and beyond.î