Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business. You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy.

Get it on Amazon (Kindle/Print)

Poor customer experience causing churn epidemic

The main customer issues behind what Satmetrix calls 'the switching epidemic' are unfair fees and charges, poor products, poor service quality, and rude or disinterested employees.

As a result the study, which was part of the company's annual Net Promoter Benchmark study, suggests that much of the £14 billion spent on advertising each year in the UK could be better spent on delivering a higher quality customer experience.

In fact, only 2% of respondents said they trust advertising the most as a source of information when choosing a product or service. Instead, almost half of consumers (49%) see personal recommendations from friends, family or colleagues as the most trustworthy source of information. Moreover, 15% said they trust consumer opinions posted online more than they trust advertising.

Famous for their sense of fair play, British consumers don't like it when they are not treated fairly. As a result, almost one quarter of respondents (23%) saw unfair fees or charges at their reason for switching providers. An additional 7% switched because discounts were offered to new customers but not to them.

Deborah Eastman, CMO at Satmetrix, noted: "Business choices that seem to make sense from a financial point can negatively impact revenue and reputation if consumers don't think they're fair. If companies drop these bad profits, they will likely recoup lost revenue many times over by keeping their customers for longer and acquiring new ones through recommendations."

The second most common reason for switching (22%) is poor product or service quality. Almost as many (19%) people leave because of rude or disinterested employees. And 12% churn because they can't get anyone to deal with their problem.

"It seems that many organisations choose to invest in attracting new customers through advertising rather than invest in a good customer experience that creates loyalty," said Eastman. "But if companies listened more to their customers, and if employees could understand the impact of their behaviour by seeing customer feedback for themselves, they could significantly reduce churn."

The cost of ignoring the customer experience doesn't stop with a lost customer, either. While 2% might trust what they read in an advert, almost two thirds of consumers (64%) look to other consumers to guide their purchase decisions. As a result, the survey found that a negative experience leads to a negative recommendation and, with it, the loss of a new customer.

"The survey proves that we live in the 'Recommendation Generation', and that the key to being recommended is the experience a customer has," concluded Eastman.

Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business.

You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy. Grab this goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, technologies, research, suppliers and partners, plus all the supporting arguments you need to build a solid CX strategy.

While most marketers could list maybe a dozen key points for improving their brand's Customer Experience (CX), the researchers and writers at The Marketing Factbook have identified FORTY main 'CX Keys' which will help you drive your customers to new levels of delight, loyalty, advocacy and profitability.

The areas in which customers have direct contact with your organization are perhaps the most obvious places in which CX improvements can be made, and this report addresses all 24 of these 'Direct CX Keys', applicable to offline and online businesses alike.

At the same time there are many other areas that indirectly affect CX (such as the supply chain, policies and processes) in which every business can make simple but far-reaching improvements. This report guides you through the problems and solutions for all 16 of these 'Indirect CX Keys', many of which are often forgotten or under-played even in the best CX strategies.

Get it on Amazon (Kindle/Print)