Wednesday, August 29, 2007

Customer service experience more important than low prices and quality.

Source: RightNow Customer Experience Report 2007


“Today, the success of every business depends on translating knowledge about customers into the reality of the customer experience. If you can’t make it easy and satisfying for people to do business with you, you’ll lose them to someone who does— and quickly.” Greg Gianforte, CEO of RightNow Technologies

Compared to last year, consumers are even more demanding of excellent customer experiences. In addition to the jump from 68% to 80% of consumers refusing to return to a company or organization after a negative experience, the number of consumers who will register a complaint or tell others of a bad experience jumped from 67% in 2006 to 74% in 2007.

Bad customer experiences comes at a high price

When contacting a company or organization, consumers are most frustrated when they cannot reach a live human being (68%). Also, 56% find waiting on hold, listening to bad music or repetitive messages frustrating. Unanswered emails and phone messages frustrates 33% of consumers. Once frustrated, consumer’s behavior can become aggressive, and they can even feel sick.

After a negative experience with a company or organization:

  • 80% of US adults decided never go back to that company;

  • 74% registered a complaint or told others;

  • 47% swore and/or shouted;

  • 13% posted a negative online review or blog entry;

  • 29% have gotten a headache, felt their chest tighten and/or cried.

In addition, after a negative customer experience, 34% have fantasized about emailing friends, family or coworkers asking them to boycott the company or organization. 12% have dreamed of picketing and/or defacing a company/ organization’s headquarters.

Positive customer experiences have their rewards

Happy, loyal customers are created one exceptional experience at a time. Keeping these customers also requires outstanding performance in several areas, including:

  • Self-service: Customers want be able to help themselves quickly and efficiently – 46% of those online find it gratifying to be able to quickly and easily find the information they need online.
  • Call center: Arming call center agents is more important than ever because 60% of consumers prefer speaking with a live agent. Amazingly, 38% claim they have not had a phone-based customer service experience that exceeded their expectations within the past year.

  • Feedback: 9% of consumers continue to do business with a company because it cares about customer feedback and takes action to improve service based on customer feedback.

  • Responsive: 36% of consumers online said they find it gratifying when email messages are answered quickly.

While making and keeping customers happy may not be easy, it is well worth the effort:

  • 51% of US adults cite “outstanding service” as the number one reason they continue to do business with a company;

  • An additional 60% said the top reason they would recommend a company is “outstanding service.

Connecting with customers across multiple touch points

To understand consumers, companies must first understand how to connect and communicate with them.

  • 60% of consumers cite speaking with a live agent via the telephone as the number one way they want to interact with a company;26% said they prefer email.

  • When online, 68% engage with an organization because they need information on a product, service or company. Interestingly,
    more than half (51%) of those online want the ability to “chat” live via the Web with a customer service representative.

Managing the Customer Journey

"Since preferences vary, companies should to be prepared to engage with customers and deliver service across every possible channel: phone, email, web, chat and in person."

I would add here my own two pennies worth by stressing that if the customer experiences during interactions with your organization (Customer Journey) are consistent and positive, and expectations are exceeded, then value is created. I have written an article titled "Improving Your Customer's Experience Through Journey Mapping" which you can find here.

What say you? Comments? Ideas?


Eric Fraterman
eric@customerfocusconsult.com
www.customerfocusconsult.com

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