Satmetrix, the Net Promoter® Company released today a study that shows how companies are wasting millions on attracting new customers through advertising, whilst loosing old customers through a poor customer experience. According to the survey, over 10 million consumers in UK have switched suppliers in the last six months. Below, the main reasons for this behavior:
- 23% Unfair fees or charges
- 22% Poor product or service quality
- 19% Rude or disinterested employees
- 12% Couldn’t get hold of anyone to deal with my problem
- 7% Discounts for new customers but not for existing customers
- 4% Inadequate return or refund policy
- 5% Out of territory call centres
- 1% Inadequate environmental policy
- 7% Other
The survey, part of part of Satmetrix’s annual Net Promoter Benchmark study, also revealed that the most trusted sources of information for customers when making a purchase decision are: 49% word of mouth (recommendations from friends, family, or colleagues); 22% product test reviews; 15% consumer opinions posted online; media articles (magazine, newspaper, television); advertising and direct mail.
“This survey shows that we live in the Recommendation Generation and that the key to what gets recommended is the experience a customer receives. The companies that understand this and have invested in customer experience programmes are already leaving their competitors in their wake by creating loyal advocates,” – Deborah Eastman, Satmetrix CMO, said in a statement. “Business choices that seem to make sense from a financial point can negatively impact revenue and reputation if consumers don’t think they’re fair. If companies drop these bad profits, they will likely recoup lost revenue many times over by keeping their customers for longer and acquiring new ones through recommendations.”
The results of the Satmetrix survey are based on a robust sample of over 5100 consumers in the UK.