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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)
 

Customers are getting less loyal to brands

Poor customer service is eroding consumer loyalty and confidence in retail brands, according to research commissioned by customer service specialist KANA Software.

Nearly one-third of UK consumers (30%) have become less loyal to retail brands in the past five years, and one quarter of those customers identified poor service as the main reason for their decreased loyalty.

One major issue for customers was the number of times they had to repeat their complaint to different people within the same company. Almost half of respondents (48%) said they had to repeat information during their last communication with a retailer.

All age groups identified repetition as a problem; however, it occurs most frequently for customers under the age of 35-with one in 20 repeating themselves at least five times. Only 30% of these younger customers had their issue resolved after one interaction. By contrast, 64% of customers over the age of 65 did not have to repeat their complaint at all, feeling satisfied after first contact.

This apparent disparity between levels of service has the potential to drive younger consumers elsewhere. Of those who feel less loyal to retail brands, 37% of 18-to-24-year-olds cite service as the key factor versus just 20% of those aged 65 and older.

"By forcing consumers to repeat themselves, often several times over a prolonged period, organisations not only deliver inefficient service that costs them money-they seriously affect future consumer loyalty," explained Steven Thurlow, head of worldwide product strategy for KANA. "The need for repetition shows not only poor management of customer data, channels and context, but more fundamentally a lack of ownership of the consumer's problem and lack of appreciation for their effort levels."

The younger generation has higher expectations of digital channels, collaborative and social communications and often asks "how hard can it be?" - and in fact they won't take seriously any organisation that is unable to get the basics right.

During the previous six months, more than one in ten adults polled had used at least five different customer channels to contact a retailer. This agrees with other studies from KANA showing that UK consumers regularly use multiple different channels of contact. Web-based chat, email and face-to-face in store came out as the most popular choices for customer engagement, with preference varying between age groups.

"When you have an issue, you want to speak to someone who knows your history and is able to take action on your behalf. Repetition causes frustration and makes customers feel devalued or, worse, completely ignored. Without a true sense that different channels of communication are linked, people feel that they are wasting their time and, ultimately, this leads to an erosion of loyalty in the retail brand," Thurlow concluded.


Sources: KANA Software /
The Marketing Factbook.
Copyright © 2014 - 2025 The Marketing Factbook.

    Categorised as:

  • Customer Loyalty
  • Knowing The Customer
  • Marketing Know-How

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)
 
Copyright © 2001-2025 Peter J. Clark