||Consumers Defect in Growing Numbers, But Majority Say 'You Could Have Kept Me'
In 2012, one in five consumers switched companies they buy from, including wireless phone providers, Internet services, and retailers, according to new research from Accenture. This marks a five percent increase in switching over 2011 levels.
However, the eighth annual Accenture Global Consumer Survey also found that the majority (85 percent) of consumers say the companies could have done something differently to prevent them from switching.
The survey, which polled more than 12,000 consumers in 32 countries, found that among those consumers who would have stayed if their provider had acted differently, two-thirds (67 percent) pointed to having their customer service issue resolved during their first contact as a factor. More than half (54 percent) might have remained loyal if they had been rewarded for doing more business with their provider.
The survey revealed that, of the ten industries covered, the largest rises in switching were among wireless phone providers (26 percent of consumers switched in 2012, up from 21 percent in 2011); Internet service providers (23 percent switched, up from 19 percent in 2011) and retailers (22 percent switched, up from 16 percent in 2011).
Broken promises are a top area of frustration for consumers, according to the survey: Nearly two-thirds (63 percent) of respondents indicate it's extremely frustrating when a company delivers a different customer service experience from what it promised upfront. Seventy-eight percent of consumers say they are likely to switch providers when they encounter such broken promises.
Other frustrations that make consumers more likely to switch include:
"The sobering reality is that 'tried and true' strategies for customer acquisition, loyalty and retention are struggling to keep pace with consumers who are perpetually in motion, more technologically savvy than ever, and increasingly unpredictable," said Robert Wollan, global managing director—Accenture Sales & Customer Services.
- Having to contact customer service multiple times for the same reason (selected by 65 percent of consumers).
- Dealing with unfriendly customer service agents (65 percent).
- Being on hold for a long time when contacting customer service (61 percent).
"The news this year is that customers want to be loyal but customer service often fails to meet their expectations. In the digital marketplace, companies must improve social listening capabilities and apply predictive analytics designed to quickly identify and respond to potential customer issues before problems arise."
Selling More With Tailored Experiences
The Accenture study found that a tailored experience is critical to a strong customer relationship. Nearly half (48 percent) of respondents say that, compared to 12 months ago, they have higher expectations of getting specialized treatment for being a "good" customer. A similar proportion (50 percent) say it is extremely important for customer service people to know their history so they don't have to repeat themselves each time they call.
Nearly a third (31 percent) of respondents prefer companies that use information about them to make their experience more efficient from one step to the next. However, only a quarter (24 percent) said their providers deliver tailored experiences.
Among the ten industries included in the survey, providers in the travel and tourism, retail banking and life insurance industries earn the highest marks for providing tailored experiences: 32 percent of respondents say travel and tourism providers offer tailored experiences, followed by 27 percent who say the same about retail banks and 25 percent about life insurance providers.
"To convince consumers to stay -- and spend more -- many companies will need to develop more tailored offers and interactions that connect with consumers' specific needs," said Michelangelo Barbera, managing director–Accenture Sales & Customer Services in Europe, Africa and Latin America.
"Taking such proactive steps to keep customers requires companies to use analytics to mine the vast stores of data they possess to gain greater insight into customers' desires and intentions and behave in the ways that customers want them to. Failing to use that data equates to not listening and can result in customers searching for someone who will."
Corporate Websites, Expert Review Sites Top Social Media Influence
As technology provides an ever-growing number of channels for consumers to interact with companies, the Accenture survey found that on average consumers use five to six channels to learn about and select providers, including:
Looking more closely at the influence of social media, the survey found that 31 percent of consumers say they trust comments posted by people they know, echoing the importance of word of mouth. More than a quarter (28 percent) say positive comments in social media affect purchasing decisions and 28 percent say negative comments do so.
- Word of mouth, relied upon by 79 percent of consumers to get information about providers.
- Corporate websites, used by nearly three-quarters (71 percent) of consumers.
- Online sources such as expert review sites, news sites and product comparison sites, used by nearly two-thirds (63 percent).
- Social media sites such as Facebook and Twitter, used by 47 percent of consumers.
"Consumers, particularly in North America, appear to be migrating to increasingly polarized camps: one group that prefers traditional interactions, such as telephone, and one tech-savvy group that demands seamless interactions across all digital platforms," said Kevin Quiring, managing director–Accenture Sales & Customer Services in North America. "Many companies, however, approach their customers with a decades-old, 'one size fits all' sales and service model that they must evolve to satisfy the different ways consumers want to interact with the companies they buy from."
(Source: Accenture, 12/05/12)
Click here to email to client
Back to Radio Sales Today
Click here to view Job Postings.
A Survival Guide for You and Your Retailers
Marketing consultants who bring retailers ideas on how to survive will get the most advertising dollars in 2013. In this fact-filled presentation, veteran radio consultant Holland Cooke of Holland Cooke Media will present information that will help you sell retail advertisers in this uncertain economy.
You'll learn why the term "business-as-usual" no longer applies, what's working instead, THE question sales reps should be prepared for retailers to ask, the kind of messages people "hear" now, and how and where that message finds traction.
This webinar will be offered on Tuesday, Jan. 15 at 10 AM, and again on Thursday, Jan. 17 at 3 PM. For registration information, click here.