Consumer Disloyalty on the Rise
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According to the recent Accenture 2011 Global Consumer Research Study, despite the fact that that customer satisfaction actually increased slightly in 2011, consumers tend to switch their service providers more often. Here are some of the key findings:
- Only an average of one in four consumers feels “very loyal” to his or her providers across industries, and just as many profess no loyalty at all. Furthermore, two-thirds of consumers switched providers in at least one industry in the past year due to poor customer service.
- Forty-four percent of consumers said their expectations today are higher than they were just a year ago.
- In emerging markets, these contradictions are even more pronounced. Consumers there more often switched providers due to poor service across all industries (in some cases by a 2:1 ratio over mature markets), especially within the Retail, Internet Service Providers, Wireless/cell phone providers and Banking industries.
- The greatest frustration consumers cite regarding their providers is “having the company deliver something different than what they promise upfront”.
Accenture's survey suggests there are "five blind spots" that could make customers change companies more often:
Accenture goes on with suggestions to improve in these areas. Accenture suggests the following actions the companies can take to eliminate the “blind spots” and attract new customers as well as retain the existing ones.
Missing the chance to set the right expectations at the onset of a customer relationship.
Not noticing subtle changes that matter to customers' need for recognition, special treatment and reward.
Overlooking signs customers are itching to switch.
Failure to offer consumers opportunities to engage with a provider
Relying on point solutions to satisfy and keep customers —while customer expectations are increasing.
Set the right expectations upfront using the right customer insights gleaned from analytics.
Recognize customers in increments that matter to them.
Identify the triggers that signal imminent switching.
Provide meaningful ways for consumers to engage with the company, including via digital channels.
The suggested steps might seem obvious and self-evident, but they are missed by a surprisingly large number of companies.