Sales & Marketing

Vast majority of customers will abandon business after a bad experience

3 min read

12 May 2015

Former deputy editor

Customer service is often hailed as an area of key importance for companies, but a new survey has revealed businesses are headed for disaster if they don't take the matter seriously, as 84 per cent of consumers will abandon a brand after a bad experience.

The research from communication tools provider LogMeIn and researcher Ovum has implored firms to pinpoint areas of dissatisfaction in order to retain customers and win their loyalties. Indeed, more than half of customers claim access to the right representative has declined over the past two years.

Methods of communication are also changing, according to the report, which said support calls from mobiles doubled to 40 per cent in the past two years, while live chat triple to 29 per cent and app use grew threefold to 16 per cent.

One company that’s entered the market to help build a bridge between consumers and businesses is AMBAM. The London-centric social network was created by a brother and sister duo who have connected small local brands to people in the area, providing digital deals as a way of building up loyalty and retention.

Aphrodite Brinsmead, senior analyst at Ovum, said: “This dual perspective study confirms that customers are increasingly using digital channels for support, especially if they know they can get faster resolutions and responses. It also indicates that businesses need to adapt their service tools to match customer needs and improve access to live agents.

“Contact centres should invest in technology to understand cross-channel behaviour and link customers’ digital interactions with their profiles and case records. By optimising online support and guiding customers to the right channel for their issues, businesses will be able to improve resolution rates and customer satisfaction.”

Read more on the customer experience:

The biggest complaint was time waiting to access a member of staff at 65 per cent, with hold times and automated menus acting as irritants. As such, 71 per cent of respondents said they look on the internet for information before reaching out to customer service – though just 31 per cent of managers think customers turn to the web before calling.

“Today’s highly mobile customers are empowered to seek out support from multiple touch points and have come to expect a response through those channels in minutes, let alone hours. Yet contact centres are not equipped to provide the fast resolutions their customer’s desire,” said Sean Ford, CMO of LogMeIn.

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