Customer service falls short of rising global expectations |
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| Management - Features | |
| Thursday, 10 January 2008 | |
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Companies are not keeping pace with consumers’ rising expectations for service, especially in emerging economies. The findings of a global survey are outlined in a new report, “Customer Satisfaction in the Multi-Polar World: Accenture 2007 Global Customer Service Satisfaction Survey Report”, released by Accenture (NYSE:ACN) as the third in a series of annual studies designed to examine consumer attitudes toward customer service. While the studies in 2005 and 2006 focused on the United States and the United Kingdom, the 2007 report expanded the geographic scope to also include Australia, Brazil, Canada, China and France. More than one-half (52 per cent) of the more than 3,500 consumer respondents surveyed this year across five continents reported that their expectations for better service have increased over the past five years. One-third (33 per cent) said they have higher service expectations today than they did just last year. Emerging economies Expectations increased the most among consumers in emerging economies. More than nine out of 10 consumers in China (93 per cent) said their expectations for better service had increased over the past five years, and 75 per cent said their expectations are higher than they were a year ago. In Brazil, nearly half (48 per cent) of respondents said that their expectations had increased since last year. The findings indicate that increases in customer service expectations continue to outpace efforts made by companies to improve service. Globally, nearly one-half (47 per cent) of survey respondents said their expectations were met only “sometimes”, “rarely” or “never”. The highest level of dissatisfaction was found among Brazilian consumers, with two-thirds (67 per cent) of those respondents reporting that their expectations are met only “sometimes”, “rarely” or “never”. Lost business Even in developed economies, where companies have spent billions on customer service capabilities, dissatisfaction with service remains high. More than half (52 per cent) of U.K. consumers said, for instance, that the frequency with which their customer service expectations are met is “sometimes”, “rarely” or “never”. The gap between service expectations and the services consumers receive translates into lost business. A majority (59 per cent) of consumers in developed and emerging economies reported that they quit doing business with a company due to poor service. The figures were significantly higher for consumers in the emerging economies of China and Brazil, 85 per cent and 75 per cent respectively. The survey found an increase in the number of UK consumers who reported a significant increase in switching service providers due to poor service: 58 per cent, up from 50 per cent in 2005. “Consumers are empowered with more knowledge and choices than ever, driving a seismic shift in the balance of power to the consumer and adding to the complexities multi-national corporations face,” said Woody Driggs, managing director of Accenture’s Customer Relationship Management practice globally. “Consumers in developed and emerging economies alike have shown their willingness to stop shopping at companies that can’t meet their service expectations,” he added. Taking business elsewhere The study found that customer churn resulting from poor service remained prevalent across industries. Retailers, banks and Internet service providers were the industries most frequently identified by consumers as those where poor service had led them to take business elsewhere, selected by 21 per cent, 21 per cent and 20 per cent of all respondents respectively. To begin to address the service issues identified in the findings, the Accenture report recommends that organisations incorporate the customer’s perspective, values and actions into their business and operations strategy, and into their capability development and execution. Forty-three per cent of consumers surveyed, for example, identified the ability to resolve an issue with a single call rather than speaking with multiple service representatives as one of the most important aspects of a satisfying customer service experience. By contrast, only 22 per cent identified the speed of the response. “To differentiate themselves, rebuild loyalty and fend off competition for valued consumers, leading companies respond by consistently delivering an experience that is tailored to the customer,” said Robert Wollan, managing director of Accenture’s CRM Service Transformation Management Consulting practice. “Competing in multiple countries has made this an even more complex challenge, and companies are finding that a ‘one size fits all’ experience — even an improved one — won’t be enough to drive growth around the corner, let alone around the world,” he added. Spending more More than four out of 10 (41 per cent) of all respondents reported that the overall quality of service they receive is “poor/terrible” to “fair”. The most severe evaluation of quality was rendered by French consumers, with 60 per cent of them saying that the service they receive tends to be “poor/terrible” to “fair.” Although satisfaction with service was highest in the United States, only 7 per cent of U.S. respondents rated it “excellent” and 28 per cent said it was “poor/terrible” to “fair”. When asked if they expect better service in exchange for spending or purchasing more frequently from a company, 71 per cent of respondents said they expect “much” or “somewhat” better service. The expectation for “much better service” when spending more was particularly strong among Chinese and Brazilian consumers, at 83 per cent and 63 per cent respectively. Expectations of consumers in developed countries were a bit lower: 35 per cent in the United Kingdom, 38 per cent in Canada and 39 per cent in the United States. Lack of personalised solutions Country by country, the mix of factors that determine whether an experience is satisfying or frustrating varies, as do consumers’ responses to poor service. Consumers in the United Kingdom were more likely than those in China to report being frustrated when left on hold too long while speaking with customer service representatives (81 per cent versus 59 per cent). The ability to interact with just a single customer service representative is more important for respondents in France, Brazil and Canada — selected by 39 per cent, 34 per cent and 32 per cent of respondents in those countries respectively — than it is for Chinese consumers (12 per cent). Brazilian consumers were the most inclined to identify lack of personalised solutions from companies as a service frustration – cited by 63 per cent of respondents in Brazil - while it was considerably less important to US and UK consumers, cited by only 37 per cent of respondents in each of those countries. This report highlights the frustrations consumers face and the need for companies to implement customer-focused programs that can improve services. “To keep pace with rising customer expectations, enterprises must continue to reinvest in their customer-facing capabilities,” said Matthew Goldman, Gartner Research vice president. “Through use of internal or external capabilities, successful enterprises will develop or enhance their understanding of changing customer preferences and how to deliver on those needs,” Goldman concluded. Related articles Related links Comments (0)
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