New research from cloud contact centre vendor NewVoiceMedia reveals that Australian companies deemed to have poor customer service are losing a staggering AUD$8 billion a year.
The survey of 2,004 adults from Australia revealed that 58 percent are taking their business elsewhere as a result of inadequate customer service – and of those, 92 percent have switched at least once or twice in the last year. 55 percent are so put off from calling a business for fear of being kept on hold, that they will switch to a competitor without even attempting to resolve a problem.
Top frustrations causing consumers to switch are lack of appreciation from a business (46%), unhelpful/rude contact centre staff (38%) and being passed around multiple agents (32%).
With respondents spending an average of $807 before leaving, it is estimated that $8 billion is lost by businesses in Australia each year – not including the significant cost of replacing lost customers and the impact of negative word of mouth. Faced with a poor experience, more than half of customers (58%) would never use that company again and 58 percent would tell friends and colleagues not to use the business.
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As further evidence that complaints can’t be kept quiet in the digital age, 16 percent of consumers admit they would take their revenge online by posting a review or complaining via social media. Among the 16-34 year-olds, this figure soared to 53 percent.
The research indicated that 16-24 year-olds are the most tolerant when it comes to bad interactions, with 8 percent taking no action at all following a poor experience, compared with 2 percent of 35-44 year-olds. But those that do are the most likely to turn to social media – arguably the most detrimental means of complaint. Acknowledging this, one respondent commented, "One hashtag and the entire world can see it."
Both genders remain fairly tolerant of hold times, but women more so than men – with 85 percent prepared to wait for more than five minutes, compared to 77 percent of men. Even so, women object more than men to being kept on hold.
Voice is still the channel of choice for customers, with 59 percent preferring to contact a business by phone and 32 percent choosing to address an issue via email. While the majority of those surveyed prefer such traditional forms of communication, 27 percent of Generation Y chose social media as the most effective way to get a response – five times that of the over 55s.
The significance consumers place on excellent service presents opportunities as well as threats, as organisations can boost their business by getting it right. The research found that 77 percent of respondents said that good service had a considerable influence on their loyalty and 76 percent would recommend the company to others. Half (51%) would use the business more frequently and 35 percent are prepared to spend more money with them.
"With $8 billion of revenue being transferred between companies, this research reinforces just how much influence customers have on a business’s success – it’s surprising how many organisations still aren’t getting it right", comments Jonathan Gale, CEO of NewVoiceMedia.
"Great customer service is the critical differentiator and investing in providing personalised and engaging customer experiences will help businesses succeed in retaining customers and securing new business."
Vonage (NYSE: VG) is a provider of communications services connecting individuals through broadband devices worldwide. Our technology serves approximately 2.4 million subscribers. We provide communication solutions that offer flexibility, portability and ease-of-use. Our Vonage World plan offers unlimited calling to more than 60 countries with popular features like call waiting, call forwarding and voicemail - for one low monthly rate. Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage is a registered trademark of Vonage Marketing Inc., a subsidiary of Vonage Holdings Corp.
Published: Tuesday, December 30, 2014
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