Despite
having more data and insights into consumer desires and preferences, companies
in the U.S. have failed to meaningfully improve customer satisfaction or
reverse rising switching rates among their customers. As a result, there is a
potential $1.3 trillion of revenue at play in the U.S. market represented by
the “switching economy,” according to new research released by Accenture.
The research revealed that 51 percent of U.S. consumers switched service
providers in the past year due to poor customer service experiences, up five
percent from 2012. Switching rates were highest among retailers, cable and
satellite providers and retail banks – making companies in these sectors the
most vulnerable, but also giving them potentially the most to gain.
Accenture’s analysis of consumer spending forecasts and switching rates
revealed by the survey shows that $1.3 trillion of revenue is being transferred
between companies in the U.S., forming a sizeable “switching economy.” The
findings are published along with the ninth annual Accenture
Global Consumer Pulse Survey, which measured the experiences of
12,867 customers in 32 countries and across 10 industries to gain insight into
the changing dynamics of today’s “nonstop” customers and assess consumer
attitudes toward marketing, sales and customer service practices. The survey
included 1,256 U.S. customers.
The survey found that customers are increasingly frustrated with the level of
services they experience: 91 percent of respondents are frustrated that they
have to contact a company multiple times for the same reason; 90 percent by
being put on hold for a long time; and 89 percent by having to repeat their
issue to multiple representatives. There are also frustrations with marketing
and sales practices: 85 percent of customers are frustrated by dealing with a
company that does not make it easy to do business with them; 84 percent by
companies promising one thing, but delivering another; and 58 percent are
frustrated with inconsistent experiences from channel to channel.
While up in some categories, the survey revealed that customer satisfaction
levels have generally remained stagnant across industry sectors and overall
satisfaction fell by one percent since 2012. Additionally, the rate of loyalty
barely budged among U.S. customers, rising just one percent since 2012, and
customers’ willingness to recommend a company rose by just two percent.
Against the high percentage of customers reporting they had switched providers
in the last year, 81 percent said that the company could have done something
differently to prevent them from switching. And, while the survey showed that
price still plays an important role in the choice of provider, the customer
experience is equally important.
Digital customer demands tailored experiences
The survey reveals 48 percent of U.S. customers use third-party online sources,
such as official review sites, and one-quarter (25 percent) use customer
reviews and comments from social media sites, to find out information about a
company’s products and services. Word-of-mouth, including that shared via
social media, continues to be the most important and impactful source of
company information across industries and is used by 71 percent of the surveyed
customers. In terms of the number of online channels used, 75 percent of
respondents now use one or more online channels when researching companies’
products and services and 33 percent use mobile devices to access these online
channels.
The gap between the use of digital technologies and the ability of companies to
use them to improve customer experiences is highlighted by the survey’s
findings that, among the 10 industries covered by the report, none made
noticeable progress in providing customers with a tailored experience in 2013.
In the utilities industry, only 18 percent of customers agreed their provider
offered them a tailored experience. Even in industries, such as hotels and
lodging and retail banking that are perceived to be leading in creating more
personalized interactions, only 36 percent of customers acknowledge receiving a
tailored experience, respectively.
Yet, while social media and online are regarded as important sources of
information, one of the greatest frustrations customers have with companies is
the perceived risk to privacy. Eighty-two percent of U.S. customers report that
they feel companies they buy from cannot be trusted on how they use personal
information provided to them.
More information on customer service and support can be found at www.SupportIndustry.com
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