UK consumers more likely to switch

NewVoiceMedia has revealed that UK consumers are more likely to switch to a competitor following a bad experience than their US counterparts.

Research from NewVoiceMedia has revealed that UK consumers are less tolerant of poor customer service than those in the US. Coupled with findings that they spend more prior to switching to a competitor, UK businesses are losing twice as much as American companies each year. But service should remain a top priority for US firms, as Americans are twice as likely to tell others about a bad experience.

According to the study, £24.5 billion ($41 billion) of revenue is transferred between companies in the US every year and £12 billion in the UK due to bad interactions – not including the significant cost of replacing lost customers and the impact of negative word of mouth. On average, 48% of consumers are taking their business elsewhere because they’re not satisfied with the service they’re experiencing.

UK consumers are more likely to switch following a bad experience than those from the US (50% vs 44%), but in both nations, the majority leave because they don’t feel appreciated as a customer.

In the US, 53% are so put off from calling a company for fear of not being able to speak to a real person straight away that they may switch to a competitor without even attempting to resolve a problem.

In the UK, being kept on hold is the biggest irritation (49%), although they are actually prepared to hold for longer than US consumers, with only 16% claiming they would hang up after five minutes of holding, compared with 22% of Americans. The results of both studies also indicate that women are far more patient than men.

“With so much revenue being transferred between companies, this research reinforces just how much influence customers have on a business’s success,” said Jonathan Gale, CEO at NewVoiceMedia. “Great customer service is the critical differentiator and investing in providing personalised and engaging customer experiences every time, through every channel, will help businesses succeed in retaining customers and securing new business”.

Additional findings include:

• Voice continues to be the channel of choice for customers, as 71% (both regions combined) consider it to be the most effective channel for a speedy resolution.
• UK consumers are the most likely to offer the business an opportunity to resolve the issue by writing to complain (58% UK vs. 37% US).
• US consumers are much less forgiving, with half eager to spread the word (compared with 27% UK) advising friends and colleagues not to use the company.
• In both regions, women are more likely to complain than men.
• US customers are the most likely to take complaints online, particularly those aged 25 to 34, with nearly 60 percent (59.3%) spreading negative sentiment through social media, forums or review channels following poor service.

“It’s baffling that customer retention is not the primary goal for every business, and these findings highlight just how critical it is that they conserve the most precious resource they have,” said Martin Hill-Wilson, Customer Experience and Social Business Strategist.