Customer service, including complimentary services offered, is one way that retailers differentiate themselves in a crowded marketplace. According to a 2011 survey conducted by Harris Interactive, 86% consumers indicated they would pay more for a better customer experience and 89% switched to a competitor following a poor customer experience.^[1]

Looking forward, customer experience consulting firm, Walker, projects that by 2020 customer experience will become the key brand differentiator, outweighing both price and product.^[2] And, unlike when companies compete on price – sometimes categorized as “a race to the bottom” – customer service can be a source of enduring brand and business value.

Apple’s Genius Bar, the free in-store technical services team available to troubleshoot Apple devices, is another example of exceptional customer service that serves as a market differentiator and builds brand loyalty. Luxury product – $1,000 for the current iPhone X, before factoring in cases and other accessories – luxury service.

Of course, not every consumer is a Nordstrom or Apple customer. Some customers just want—and they just want to pay for—the basics. McFIT, the largest fitness center chain in Europe,^[5] serves that market with a just-the-essentials gym with a “Simply look good” tagline.^[6] In order to keep membership fees low, there are no premium services such as fitness classes, saunas and swimming pools.^[7] McFIT has also launched fitness studios at very low budget and premium price points, offering a range of fitness experiences.

While customer service level expertise and service offerings vary, it is important to understand that customers have expectations of a basic level of service. For example, accurate pricing and labeling are basic expectations. Having products in stock—in particular when a retailer’s website indicates stock on hand—is a basic service expectation. Grocery stores with self-check options are outliers; in general, accurate billing/checking—including removal of any security devices—is a minimum customer expectation.

Understanding your customer’s expectations, and how to meet (and exceed) them is key to understanding your customer’s value proposition and deliver a relevant level of service.