Why the Most-Loved Brands Win on Experience

Do you ever feel like the shopping experience just keeps getting worse? From a plethora of sketchy drop shippers to empty shelves or products only available with a sales associate’s help to liberate them from behind glass, the ability to get what you want and have confidence in the product is becoming more challenging. In the face of these challenges, Costco stands out as a company that continues to build on its philosophy of stellar customer service to continue winning hearts in its own back yard and beyond. 

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Why Experience Outranks Everything

Given this shifting retail landscape, it’s unsurprising that respondents to our Most Beloved Northwest Brands survey ranked customer service as the most important attribute when choosing a brand - 78% rated this quality as very important. This aligns with other research in the customer service  space: 

• In a study conducted by Salesforce, 80% say the experience a company provides is as important as its product or services
• 81% of respondents said a positive service experience makes them more likely to purchase again, according to ZenDesk
•  Further, one third of respondents cite bad customer service as one of the main reasons they stop buying from brands, according to a 2022 study done by PWC

Customers are seeking an experience that enables them to shop easily, trust the products they buy and get issues resolved quickly. Costco aims to deliver on these three key areas, even while providing a store experience that may be seen as having fewer frills and less selection than other retailers.

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Costco’s Service Model as Business Philosophy

Costco’s central principals express themselves as key, direct benefits to their members.

1. Value: at its core Costco is built on providing outsize value to its members. Since its founding, Costco has tightly controlled margins and used sales volume and Kirkland brand products to negotiate with suppliers. These tactics have created an extremely favorable price environment on name-brand products for their customers, with very few competitors able to undercut the deals available.
2. Reliability: the combination of curated name-brand products across a wide variety of categories, rigorous product testing and development for Kirkland brands and the generous return policy gives customers confidence they are buying the best of the best and can take it back if it doesn’t meet their expectations.
3. Employee treatment: Costco’s reputation as a great place to work not only builds their credibility as a positive force within communities, but manifests in the way employees interact with customers. High levels of staffing help customers navigate the store with ease, whether it’s helping answer questions, processing memberships/returns or moving people through the checkout process efficiently. 

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Members Feel the Love

Almost one quarter of respondents in our Beloved NW Brands study selected Costco as their most beloved brand (23%), coming in second only to Amazon (34%). When asked why they chose Costco, respondents identified several key areas that relate to their positive customer experience:

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In their own words, customers highlight the myriad of ways that Costco consistently delivers for them:

“Although they specialize in large sizes, they have good brands, an excellent store brand, and great prices.”

“Costco excels on all levels - customer service, best products, treats their employees well, and boosts the economy.”

“They provide quality products, customer service, and their values are well grounded. They do not price gouge people. Never had a single bad thought about them.”

“They seem to do the best with customer service, their products are always a good price and I can find what I am looking for.  Recently I have also been shopping online for their products and that has been very easy to use.”

“Because I love shopping here and they offer great deals on products. Employees are always helpful and friendly.”

“They have it all. From food, meds, clothes, fuel—all with positive friendly customer service.”

“I enjoy being able to purchase larger quantities of each of the products I buy, and I am rewarded annually for all of my purchases.”

“Costco knows business, they know how to bring the right products at the right price and they treat their customers right, they understand customer service and returns are not a concern if an issue arises.”

“Fantastic customer service, stands behind their products, quality of products, good prices.”

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Costco Delivers on What Consumers Love Most 

Costco exemplifies many common traits for service standouts, nurturing key elements that build customer trust and loyalty:

• They prioritize transparency and consistent product delivery 
• They train and retain employees who are empowered to act in the customers’ best interests
• They implement policies that derive real benefit for members, curating products, services and policies that favor their customers

And, these strategies are not just about generating goodwill. They create long-term relationships with members, with high lifetime value. Decreased churn leads to long-term profitability and high levels of trust, along with positive word-of-mouth and earned media driven by positive consumer perceptions.

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What Other Brands Can Learn

Customer service is a long-term brand asset, not just a cost center and investments in it can take many different forms. Building a reputation for trusted, quality products and services that the company will stand behind while making it streamlined and easy for customers to return those products if they are dissatisfied seems like a no-brainer. But, in a marketplace flooded with low-quality products on Amazon, cheap knockoffs from Temu, and companies increasingly charging for returns and restocking, exemplars like Costco stand out. 

Further, investing in your employees creates a culture that tangibly benefits customers. And customers feel it and respond positively.  This is an important reputation builder, especially for a category where understaffing, just-in-time scheduling and low pay run rampant, leading to employees who won’t or can’t focus on helping customers in a meaningful way.  

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Survey methodology

This survey was conducted between January 13 and January 17, 2025 using the Ask Your Target Market (AYTM) platform. The 1,000 respondents were adults 18+ living in Wasington State. The margin of error for the survey was +/-3.1%. 

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For a copy of the full report, please email Cameron Wicker: cwicker@copacino.com

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