Articles

23.2.2011 Brands fail on service

A majority of consumers across the globe switched between service providers last year because their needs were not adequately met, although behaviour is starting to change in this area. Accenture, the consultancy, surveyed 5,800 peoplein 17 countries, including Brazil, China, Germany, India, Japan, the UK and US, and reported that 64% of participants switched in 2010. This marked a decrease measured against the 69% score from 2009. Before then, totals had increased steadily since the 49% low from 2005. Last year, 26% of interviewees swapped to a new retailer in 2010, figures reaching 22% concerning banks, 19% regarding internet service providers, 17% relating to mobile networks and 16% for landlines. Indeed, satisfaction ratings fell in all 11 categories assessed, based on problems like not being able to contact company representatives at convenient times to the lack of a multi-channel model for dealing with enquiries.

Overall, 67% of the panel were unwilling to compromise on product quality in exchange for cheaper prices, and 54% adopted the same position when discussing customer service. The number of people that stopped trading with one firm in favour of another on cost grounds dropped from 75% in 2009 to 57% in 2010, suggesting habits encouraged during the downturn may be receding slightly. A key issue which must be addressed is that of trust, as only 27% of respondents expressed confidence in the organisations they did business with. Some 18% of contributors changed retail bank due to worries linked to this matter, but other segments were also impacted. The share of shoppers taking similar action in the consumer goods retail industry rose from 7% to 15% annually.

B.L. 23.2.2011