Consumers are changing service providers at record rates. Whether it is TV, phone, banks, wireless or internet carriers; people are changing. The interesting part of the story is 80% of those who decided to switch said the original provider could have done something to keep them. The frustrating part for the consumer is it appears businesses are just accepting this behavior as the normal course of doing business.
Accenture performed a study which determines the top three complaints among customers who switched providers was:
- Companies not solving their problems on the first interaction (86%)
- Lengthy hold times (85%)
- Talking with service representatives who couldn’t answer their questions (84%)
These results are bad enough in themselves; however, these are the same issues for customers over the past 5 years!
I guess change happens really really slowly at businesses.
The conclusion one could draw is, if you treat your customers well they will reward you with their loyalty. That loyalty provides recurring revenue and saves you $$$’s as it costs more to obtain a new customer versus keeping an existing one.
Switching is not required, yet it will be done if companies make customers fight for basic service.
Customers do not want a lot. Just basic service AND a person who can help them with a problem in a timely manner.
