Poor customer service damaging client loyalty

Published 18th Aug 2014 by rachael
Poor customer service damaging client loyalty Poor Customer Service Damaging Client Loyalty New research commissioned by customer service specialists KANA Software, suggests poor customer service is eroding consumer loyalty and confidence in brands. Nearly one third of UK consumers (30 percent) have become less loyal to retail brands in the past five years, according to a survey of 2,000 consumers. One-quarter of those customers identified poor customer service as the main reason for this decreased loyalty. One major issue for customers was the number of times they had to repeat their complaint to different people within the same company, if anything went wrong. Almost half of respondents (48 percent) said they had to repeat information during their last communication with a retailer. All age groups identified repetition as a problem; however, it occurs most frequently for customers under the age of 35—with one in 20 repeating themselves at least five times. Only 30 percent of these younger customers had their issue resolved after one interaction. By contrast, 64 percent of customers over the age of 65 did not have to repeat their complaint at all, feeling satisfied after first contact. "By forcing consumers to repeat themselves, often several times over a prolonged period, organisations not only deliver inefficient service that costs them money — they seriously affect future consumer loyalty," says Steven Thurlow, head of worldwide product strategy for KANA. "The need for repetition shows not only poor management of customer data, channels and context, but more fundamentally a lack of ownership of the consumer’s problem and lack of appreciation for their effort levels.” "The younger generation has higher expectations of digital channels, collaborative and social communications and asks ‘how hard can it be.’ They won’t take seriously an organisation that is unable to do the basics right, and these expectations are rising all the time," Thurlow continues. “When you have an issue, you want to speak to someone who knows your back history and is able to take action on your behalf. Repetition causes frustration and makes customers feel devalued or, worse, completely ignored. Without a true sense that different channels of communication are linked, people feel that they are wasting their time and, ultimately, this leads to an erosion of loyalty in the retail brand,” Thurlow adds.
rachael

rachael

Published 18th Aug 2014

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