Survey suggests businesses losing up to Â£750,000 due to poor customer programmes
Eight in ten companies with solid customer programmes demonstrate significant profit increases but Europe Â‘lags behind the rest of the world in meeting customer expectationsÂ’.
Fewer than 20% of companies globally are delivering the level of service their customers expect according to a new study from Avaya, a global provider of business collaboration and communications solutions and services.
The research suggests that European companies lag behind their Asian and American counterparts when it comes to closing the gap between customer expectations and the service they deliver and are missing out on potential profit increases as a result.
Despite the research finding a firm correlation between customer service initiatives and increased profits, businesses are failing to evolve their customer programmes fast enough to keep consumers satisfied.
• 81% of companies with solid customer initiatives in place have seen significant profit increases in the last 12 months
• 92% of UK and 61% of German consumers would rather spend money with organisations that are easier to buy from
• Yet less than a fifth of British/German managers believe customer effort significantly impacts spending satisfaction and retention, while only 40% of UK managers and 30% of German managers have initiatives in place to reduce customer effort.
In addition to losing money, failed customer initiatives mean businesses miss out on the increased customer satisfaction (68%), loyalty (64%), retention (59%) and repeat purchasing (56%) that companies with solid customer experience programmes report.
Europe lags behind the rest of the world
In general European businesses place less importance on managing the customer experience. In China and the US 83% and 73% of businesses respectively have a customer management programme in place while in India the figure is 72%. This is in sharp contrast to Europe, where only 55% of British and German companies do. In India three-quarters of business managers say customer experience management is very important. The US (59%) and Brazil (59%) also view it as very important, but fewer business managers in Germany (33%) and the UK (39%) feel this way.
To learn and debate the latest customer loyalty issues with Sainsbury's, AO, Subway, Home Retail Group, Orange and many more, register now for the Retail Bulletin's 5th Customer Loyalty Summit to be held on 10 June 2014 in London.
The survey was conducted globally across 13 countries. 1,268 businesses with more than 1,500 employees were interviewed.
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