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25 Statistics On Customer Expectations and Attitudes To Service For 2011

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We’re in changing times, and these statistics and trends about customers, their expectations and their reactions to good and bad service highlight and reinforce this. What do they mean for you? More importantly, what do you need to do in 2011 (and beyond?).

1. 24% of UK customers have stopped doing business with a company within the last six months due to a bad customer experience. Key reasons:

  • 23% Unfair fees or charges
  • 22% Poor product or service quality
  • 19% Rude or disinterested employees
  • 12% Couldn’t get hold of anyone to deal with my problem
  • 7% Discounts for new customers but not for existing customers
  • 4% Inadequate return or refund policy
  • 5% Out of territory call centres
  • 1% Inadequate environmental policy
  • 7% Other

Source: Satmetrix

2. Only 3% of consumers believe that UK high street retailers offer great customer service!

Source: Retail Eyes Report

3. UK customers feel ‘Customer Service Experiences Generally….’

  • Exceed Expectations – 2%
  • Meet Expectations – 62%
  • Miss Expectations – 32%
  • (4% weren’t sure!)

Source: American Express Global Customer Service Barometer

4.  The longest time UK’s shoppers are prepared to queue is two minutes, down from five minutes only six years ago! Two thirds of UK customers have walked away from buying something because they weren’t prepared to wait.

Source: Barclaycard

5. 73% of consumers end a relationship due to poor service and the root causes are:

  • Having to repeat information 
  • Feeling trapped in automated self – service
  • Having to wait too long Interacting with staff who have no knowledge of the service history (or customer value)
  • Unable to easily switch between communication channels

Source: Genesys Telecommunications Laboratories Report – The Cost Of Poor Customer Service

6. 86% of consumers quit doing business with a company because of a bad customer experience, up from 59% 4 years ago.

Source: Harris Interactive, Customer Experience Impact Report

7. 51% of UK shoppers refuse to even enter a store if they spy a queue.

Source: Barclaycard

8. ‘Poor experience’ has forced over 10 million consumers in the UK to switch suppliers in the last six months alone. The main culprits for this switching epidemic are:

  •  unfair fees or charges
  • poor product or service quality and....
  • rude or disinterested employees.

Source: Satmetrix

9. 50% of new callers don’t ring back if they don’t get an answer when they call, and 15% of existing customers don’t call again if they get the same experience!

Source: Moneypenny

10. When asked how companies can encourage them to spend more, 61% of customers said accessible information and availability for questions before making a purchase 66% said improved customer service 23% said a ‘tailored’ experience.

Source: Right Now Report – Customer Experience Impact

11. Almost 1 in 5 of UK businesses don’t respond to email enquiries from customers.

Source: Direct Marketing Association Report

12. ‘Usability’ is the number 1 factor in what customers look for in an e-commerce website. This means clearly presented pricing and shipping information, followed by indications of credibility and trustworthiness. Visual appeal and functionality like cost calculators and search were also relatively important. But advanced features such as live chat and social hooks were important to but a small minority of respondents.

Source: Oneupweb ‘Revolutionsing Web Design’ Report

13. Only 2% of UK customers trust advertising the most as a source of information when choosing a product or service.  Source: Satmetrix

14. Only 17% of respondents choose where to shop based on their participation in loyalty card schemes and 93% of consumers would continue to shop somewhere, even if the retailer scrapped its loyalty scheme.

Source: YouGov SixthScence 

15. On average, people in the UK spend 45% of their waking hours ‘tuned in’ to their TVs, radios, telephones and the internet!!

Source: Ofcom

16. 49% of customers see personal recommendations from friends, family or colleagues as the most trustworthy source of information.

Source: Satmetrix

17. 90% of online consumers worldwide trust recommendations from people they know and 70% trust consumer opinions posted online.

Source: Neilson

18. 25% of UK holidaymakers check things out on TripAdvisor before they book their holiday!  42% of social media users booked their original choice after looking at such sites, but…

  • 35% switched their hotel as a result,
  • 15% changed the travel agent or tour operator, and
  • 12% decided to visit a different country altogether!

Source: WTM 2010 Industry Report

19. 57% of businesses would be willing to pay higher fees for a more customer friendly and comprehensive web - portal banking service and 46% said that they would pay more for a consistently good service across all regions, channels and lines of business.
Source: Finextra Reseearch and Pegasystems Report

20. Good retail customer service, according to UK customers, includes

  • listening and understanding what the customer is looking for
  • a friendly approach
  • making sure the customer leaves feeling valued, and
  • staff who take care over their appearance

Source: Retail Eyes Report

21. 74% customers would be prepared to pay more for a product if it came with better service.

Source: Retail Eyes Report

22. More than 50% of UK customers will spend more on products and services if the service experience was guaranteed to be first class.

Source: American Express Global Customer Service Barometer

23. On average, UK consumers will pay a premium of 7% for the privilege of good customer service and 70 per cent state they would do more business with an organisation that offered decent customer care.

Source: American Express Global Customer Service Barometer

24. In a business to business engagement, ‘delighted’ customers are FIVE TIMES more likely to plan on repurchasing than merely satisfied customers.

Source: Ipsos Loyalty Report: The Role of Customer Delight in Achieving Customer Loyalty

25. Poor customer service is costing UK businesses £15.3 BILLION!!!!!!

Source: Genesys Telecommunications Laboratories Report – The Cost Of Poor Customer Service

The key issues as I see it are:

  • Customer expectations are rising and will continue to do so
  • The world is becoming more transparent
  • Being ‘easy to buy from’ and ‘deal with’ is crucial
  • Consistently providing a personalised and tailored response to customers is key
  • It can create real competitive edge and reduces emphasis on ‘price’
  • The influence of 'word of mouth' (and 'word of mouse'!) recommendation is increasing
  • Many businesses still don’t ‘get it’!

 And, crucially....Those that do will be the ones that succeed in 2011 (and beyond!)

 For more information on how to do that, visit www.andyhanselman.com

 

Great article

Thanks Andy, this is a great collection of data. I am busy pointing my clients and contact to this article in the hope that they will make time to review their own customer service standards.

andyhanselman's picture

Thanks Nigel

Thanks for that Nigel!

Keep 'pushing' them, and crucially, push them to do something as a result!!!

Andy

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