Companies are not keeping pace with consumers’ rising expectations for service, especially in emerging economies, according to results of a global study released by Accenture.
The findings are outlined in a new report, “Customer Satisfaction in the Multi-Polar World: Accenture 2007 Global Customer Service Satisfaction Survey Report,” the third in a series of annual studies designed to examine consumer attitudes toward customer service. While the studies in 2005 and 2006 focused on the United States and the United Kingdom, the 2007 report expanded the geographic scope to also include Australia, Brazil, Canada, China and France.
More than one-half (52 percent) of the more than 3,500 consumer respondents surveyed this year across five continents reported that their expectations for better service have increased over the past five years. Additionally, one-third (33 percent) said they have higher service expectations today than they did just last year.
Expectations increased the most among consumers in emerging economies. More than nine out of 10 consumers in China (93 percent) said their expectations for better service had increased over the past five years, and 75 percent said their expectations are higher than they were a year ago. In Brazil, nearly half (48 percent) of respondents said that their expectations had increased since last year.
The findings indicate that increases in customer service expectations continue to outpace efforts made by companies to improve service. Globally, nearly one-half (47 percent) of survey respondents said their expectations were met only “sometimes,” “rarely” or “never.” The highest level of dissatisfaction was found among Brazilian consumers, with two-thirds (67 percent) of those respondents reporting that their expectations are met only “sometimes,” “rarely” or “never.”
Even in developed economies, where companies have spent billions on customer service capabilities, dissatisfaction with service remains high. For instance, more than half (52 percent) of U.K. consumers said the frequency with which their customer service expectations are met is “sometimes,” “rarely” or “never.”
The gap between service expectations and the services consumers receive translates into lost business. A majority (59 percent) of consumers in developed and emerging economies reported that they quit doing business with a company due to poor service; the figures were significantly higher for consumers in the emerging economies of China and Brazil -- 85 percent and 75 percent, respectively. Additionally, the findings found an increase in the number of U.K. consumers who reported a significant increase in switching service providers due to poor service -- 58 percent, up from 50 percent in 2005.
The study found that customer churn resulting from poor service remained prevalent across industries. Retailers, banks and Internet service providers were the industries most frequently identified by consumers as those where poor service had led them to take business elsewhere -- selected by 21 percent, 21 percent and 20 percent of all respondents, respectively.
To begin to address the service issues identified in the findings, the Accenture report recommends that organizations incorporate the customer’s perspective, values and actions into their business and operations strategy, and into their capability development and execution.
For instance, 43 percent of consumers surveyed identified the ability to resolve an issue with a single call rather than speaking with multiple service representatives as one of the most important aspects of a satisfying customer service experience. By contrast, only 22 percent identified the speed of the response.
More than four out of 10 (41 percent) of all respondents reported that the overall quality of service they receive is “poor/terrible” to “fair.” The most severe evaluation of quality was rendered by French consumers, with 60 percent of them saying that the service they receive tends to be “poor/terrible” to “fair.” Although satisfaction with service was highest in the United States, only 7 percent of U.S. respondents rated it “excellent,” and 28 percent said it was “poor/terrible” to “fair.”
Additionally, when asked if they expect better service in exchange for spending or purchasing more frequently from a company, 71 percent of respondents said they expect “much” or “somewhat” better service. The expectation for “much better service” when spending more was particularly strong among Chinese and Brazilian consumers, at 83 percent and 63 percent, respectively. Expectations of consumers in developed countries were a bit lower: 35 percent in the United Kingdom, 38 percent in Canada and 39 percent in the United States.
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