Bad Service Blues

BAD SERVICE BLUES A Global Perspective Recently, the management consulting firm Accenture performed a global study that focused on shifts in consumer and brand relationships around the world based on the perception of customer service. What can service providers glean from these assessments and how can they move the customer experience in a positive direction? DITCHING BRANDS BECAUSE OF TERRIBLE SERVICE GOOD NEWS: Percent who switched due to poor customer service TREND REVERSAL? Last year marked the first time in the last few years when less customers around the world left their providers 67* 69* 64 2008 2009 2010 due to unsatisfactory customer service. Percent who are satisfied or extremely satisfied BAD NEWS: CUSTOMERS STILL 100 A Employees who are polite and friendly AREN'T GETTING WHAT THEY WANT B Employees who are knowledgeable 50 C Not being transferred to another customer service rep From 2009 to 2010, customers everywhere were more displeased with the service they received O Employees who remember details about a in all categories. 2009 2010 What makes customers customer's history happy when it comes to E Access to environmentally friendly options F Convenience Ability to access using multiple channels Ability to resolve issues without needing to speak to an agent customer service? THE RETAIL INDUSTRY Percent who switched due to poor customer service SUFFERS THE MOST 9* UTILITY COMPANIES Nearly one out of three global customers have left their retailer because of bad service. 22 BANKS 13* 17* CABLE SERVICE PROVIDERS 26h CELL PHONE PROVIDERS 10 LIFE RETAILERS INSURANCE PROVIDERS Industry 10* HOTELS 16* 19* INTERNET HOME PHONE PROVIDERS 8% SERVICE PROVIDERS AIRLINES 4* OTHER EVEN LOWER PRICES CAN'T MAKE UP FOR BAD SERVICE Percent of respondents who switched due to price PRICE DECLINES AS A FACTOR FOR SWITCHING 68 75t 57 2008 2009 2010 MOST WON'T TRADE QUALITY OR 100 INO YES CUSTOMER SERVICE FOR CHEAP PRICES 67* 54* 47* If it means you get the lowest price, are you 44* willing to accept lower levels of.. 11* 8T% 17* 5% CUSTOMER PRODUCT PRODUCT COMMUN- SERVICE? OPTIONS? QUALITY? ICATION? HOW TO CHANGE CUSTOMER SERVICE FOR THE BETTER GO TO THE SOURCE: FRIENDS & FAMILY Percent who use the source When determining whether 47% ONLINE or not they want to do business with a company, INFORMATION FROM OTHER SOURCES 47 PAID 62 WEBSIE a whopping 76 percent of ADVERTISING people say they get information from people ON TV/RADIO 58* they know, whether they meke PRINT ADVERTISING better use of social media etter use ocial media or monitor comments made online about them, service 76% FROM PEOPLE providers should recognize 46 ONLINE ADVERT- ISING 63 IN-STORE INFORMATION THEY KNOW the power of word of mouth. Where do people get their information when 37% DIRECT MAIL/TELE- choosing a service? MARKETING PROVIDE LOYALTY PROGRAMS 50.9 Average amount of people who stick with companies from all industries that have loyalty programs: REGAIN TRUST 100 % With trust becoming an increasingly vital influencer of customer service, most Percent who switched due to lack of trust people cited a lack of trust as the reason why they switched to another bank or 18 17* 17* financial service provider. 15 15th 13 13 Which industries AS & ELECTRI COMPANIES lost the most customers Industry BANKING & ELL PHONS because of a lack of trust? GEVIDER PROVIDERS TRAVEL & TOURISM SOURCE: ACCENTURE 2010 GLOBAL CONSUMER RESEARCH CREATED BY satisfaction www.getsatisfaction.com COLUMN FIVE FINANCIAL SERVICES INTERNET SERVICE PROVIDERS LIFE INSURANCE RETAILERS