UK businesses lose £12 billion a year through poor customer experience: new study
New research has revealed that UK companies that are perceived to offer poor customer service could be losing approximately £12 billion a year in lost business.A survey by cloud contact centre vendor NewVoiceMedia found that half of UK consumers said they had taken their business elsewhere as a result of inadequate service and of those, 92% had switched at least once or twice in the last year. Furthermore, 49% of survey respondents said they had been put off from calling a business for fear of being kept on hold or in a queue, meaning that many customers may switch to a competitor without even attempting to resolve the problem first.
With respondents spending an average of £472 before switching, NewVoiceMedia estimates that £12 billion is lost by UK businesses every year through poor service. Faced with a negative experience, 56% of those surveyed said they would never use that company again, while 27% would tell friends and peers, and 19% would publicise their bad experience by posting a review online.
Jonathan Gale, chief executive of NewVoiceMedia, said: "Customers have a stronger influence on a business’s success than ever before and it’s surprising how many organisations still aren’t getting it right.
"Customer experience is a key differentiator. By doing it well, organisations can drive the customer acquisition, retention and efficiency that make leading companies successful."
The results of the survey show that 19% of respondents would post an online review and 14% would complain via social media if they were unhappy with the service they received from a business.
The younger generation were found to be more willing to tolerate long hold times when telephoning a company with 30% of respondents saying they would wait 11 to 20 minutes whereas only 9% of those aged over 55 would wait for that length of time.
Following a positive customer experience, 74% of respondents said they would be more loyal to a company, while 71% would recommend a company to others. While 44% said they would be prepared to use a business more frequently after good service, 34% would be prepared to spend more money with the company.
Voice was found to be the channel of choice for a quick response with 66% of respondents preferring to get on the phone and speak to someone to get an issue resolved quickly versus 23% who would prefer to address an issue via email.
Gale added: "This research highlights the cumulative effect of business interactions on the customer experience. Customers want personal and engaging experiences every time, through every channel; from the steps they take to interact with a company to the agents they deal with."
The Retail Bulletin's 4th Customer Loyalty conference will look at strategies to identify and develop the loyalty of your customers through building trust and engagement, whilst achieving maximum ROI. Join us for this one-day, high-quality event and network with your peers in a relaxed, informed and interactive environment. Click here for full details.
Email this article to a friend
You need to be logged in to use this feature.
Please log in here