What makes great customer service? How do businesses go beyond ‘good enough’ to create an experience that keeps clients coming back? Even with the rise of self-service platforms and AI, new data confirms that customers still value real connections with brands. To truly stand out, businesses need to understand why great customer service works—not just that it does.
Why Customers Pay More for Great Service
USA Today just published a research study examining the relationship between customer service and loyalty. Participants shared insights across various industries, evaluating brands on friendliness, appreciation, professional competence, transparency, and reliability. The results confirmed that not only do customers choose to stick with providers that deliver on these fronts, but they’re also willing to pay more for a service. In fact, “68% of consumers are willing to pay more if a brand is known to offer good customer service experience.”
The bottom line? Great service doesn’t just support your business—it helps it flourish. By understanding the strategies behind exceptional customer service, you can create meaningful experiences that keep customers coming back.
Putting People First
Great customer service always comes back to one thing: real human connection—putting people first to build genuine relationships. Customers want to feel seen and valued, and most prefer an authentic, personal touch when they interact with a brand. It’s not just about solving problems; it’s about creating a positive, memorable experience.
This theory and the USA Today findings align with the differentiation strategy introduced by renowned business strategist and Harvard professor, Michael Porter. Porter suggests that when businesses are selling the same or comparable products, service becomes the differentiator. In other words, consumers will stick with stand-out service they can count on, even if it means paying more.
The impact of putting people first becomes even more powerful when applied through the “Psychological Ownership Theory”—the idea that when businesses treat customer interactions as relationships rather than transactions, they foster a deeper sense of belonging. Customers who feel valued and engaged develop a stronger connection to a brand, making them less likely to leave.
One way businesses create this connection is by remembering customers’ names, preferences, and past interactions without being prompted. This level of personal attention strengthens relationships and builds loyalty, which becomes even more critical when challenges arise.
This is where the “Reciprocity Principle” comes into play. When a company consistently goes above and beyond to serve its customers, those customers naturally feel inclined to stay loyal in return. By investing in meaningful interactions, businesses not only earn trust but also create a sense of goodwill that can help sustain relationships through difficult times
For example, when a client needs some extra handholding to understand a new product or process and a customer service representative takes extra time to clearly explain, the company wins more than the client’s immediate gratitude. The client is more likely to want to repay the favor by becoming a repeat customer or recommending the business to others.
Acting on Connection
When companies find ways to act on the human connection they’ve created, they see their businesses thrive . Chewy, the rapidly growing online pet supply company launched in 2011 to “bring the neighborhood pet store experience to a larger audience” famously sends fresh flowers to bereaved pet owners who cancel auto shipments after a pet’s death. The company went public in 2019. At the other end of the spectrum, a small pet supply store in Massachusetts called The Crate Escape in 2002 started hearing from return customers that pet owners needed reliable pet care services. The business pivoted to offer walking, training and pet sitting services, and has since grown to five locations where the staff remains beloved and the customer connection genuine.
Expert Service and Human Connection is the CommPayHR Difference:
For more than 20 years, Commonwealth Payroll & HR has upheld core values of being Service-Oriented and Pro-Human. We combine deep industry expertise with a people-first approach—because great service isn’t just about what we know, but how we show up for our clients every day. Reach out to us today so we can answer your questions and explore how we can support your business with solutions that truly put people first.
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