Poor service makes customers switch from one brand to another, in spite of all efforts by marketers to know more about potential and current clients.
The Accenture consulting company has coined this trend "switch economics". This year U.S. companies failed to increase customer satisfaction. According to Accenture, switch economics results in some $5.9 trillion loss in the total income of global companies.
Poor service made 51% of American customers change brands/companies this year. The survey involved around 1,256 Americans. Word of mouth and social media have become an important source of information about companies in different industries for 71% of the customers polled. Approximately 75% of respondents use one or more online channels to get information about products and services.
Customers tend to turn to another company if faced with poor service in retail, in the IT industry, or in banks.
- 91% of respondents were upset about having to address a company several times with the same problem;
- 90% of customers say that they had to wait too long for an answer;
- 89% of respondents had to repeat their problem multiple times to different employees of the company.
Nevertheless, 81% of those asked believe that the company could solve the problem caused by poor service in some other way in order to retain the customer. However, results showed that customers chose companies by price as well as by service quality.