Businesses that neglect to invest in customer service are putting their customer relationships at risk, according to the second annual TD Canada Trust Customer Loyalty Poll.

Ninety five per cent of Canadians said their customer service experiences can make or break a relationship with a particular brand or company, up 10 per cent from last year.

While many businesses explore innovative ways to show their appreciation of their customers, the poll found that good service was most important, with 49 per cent of Canadians ranking "just good customer service" as number one. Reward/loyalty programs and gifts were a distant second and third at 18 per cent and 17 per cent respectively.

"Service is the number one deciding factor for people when they are choosing a company to deal with, and it's the hardest thing to get right," said Tim Hockey, Group Head, Canadian Banking and President and CEO, TD Canada Trust.

The top ranked factors that make service great were:

1. Friendly staff (24 per cent),
2. Quick service (15 per cent), and
3. Being helpful (14 per cent)

Retail stores and financial services companies were perceived to have the best customer service while utility companies were perceived to have the worst, especially in Ontario and Quebec.

Most respondents said that they generally receive good customer service and 73 per cent said they had received good customer service in the past month, an increase of 11 per cent over last year.

"We've found that good customer service has a ripple effect, in fact our poll shows that 89 per cent of people will share their positive stories with their friends and family," said Hockey.

The poll also found a number of differences by region and age of the respondents.

Young versus Old

• Sixty one per cent of Canadians aged 55+ ranked good customer service as the form of appreciation they were most interested in, almost double that of 18-34 year olds (35 per cent).
• Twenty four per cent of younger Canadians aged 18-34 selected gifts as the form of appreciation they were most interested in.

Atlantic Canada

• All Atlantic Canadians (100 per cent) said that customer service will make or break a relationship with a particular customer or brand.
• Most (90 per cent) were likely to purchase a products or service that was recommended by a friend or family member.
• Atlantic Canadians were more likely to be interested in gifts as a form of customer appreciation (23 per cent versus 17 per cent nationally).

Quebec

• While Canadians in other provinces said that friendly staff makes a customer experience great, those in Quebec gave "able to answer my questions" the top ranking at 24 per cent.
• Quebecers were most interested in reward/loyalty programs (25 per cent compared to 18 per cent nationally) and were least likely to purchase a product or service recommended by a friend or family member (66 per cent).

Ontario

• People in Ontario like to talk about customer service. Ninety one per cent said that they often share stories about good customer service experiences, compared to 89 per cent nationally.

Manitoba & Saskatchewan

• At 60 per cent Manitoba and Saskatchewan were well ahead of the rest of Canada in ranking "just good customer service" as form of appreciation they were most interested in.
• People in these provinces were more likely to rank friendly staff as the thing that makes customer service great (37 per cent compared to 24 per cent nationally).
• They were least likely to be interested in loyalty/reward programs (13 per cent).
• Ninety two per cent of people in Manitoba and Saskatchewan often make recommendations to family and friends about products/services they have used.

Alberta

• Ninety six per cent of Albertans often share stories about good customer service with friends and family, compared to 89 per cent nationally.
• Ninety three per cent of Albertans have experienced great customer service in the past year.
• People in this province found the best customer service at financial service companies (37 per cent).

British Columbia

• The best customer service levels were reported in British Columbia, at 81 per cent compared to 73 per cent nationally.
• Price discounts were rated as the best way to show appreciation for their business (24 per cent).
• Ninety six per cent of people in BC often share stories about good experiences with friends and family.

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