Ten things customers want you to know
Ten things customers want you to know
By Frank Sherlock, senior vice president sales and professional services at Convergys
Published: May 11 2009 12:14 | Last updated: May 11 2009 12:14
Providing a quality customer experience can be a key differentiator for businesses – yet at this crucial time it seems that companies still don’t know what their customers want.
At Convergys, we recently surveyed 1,000 UK consumers to find out what they really think about customer service and the results were surprising.
First, customers are now in control and we’ve moved from a service economy to an experience economy, meaning successful brands are those that create consistently superior customer experiences.
Second: worryingly, business leaders are still detached from their customers – most executives claimed to have a solid understanding of their customers’ experience and expectations.
Half of consumers, however, say they don’t believe companies understand what customers experience in dealing with them, citing rude employees or no resolution as common bad experiences. More than half (55 per cent) of customers do not believe companies listen or act on feedback.
So consumers are taking matters into their own hands.
Overall, 46 per cent of customers who have a bad experience and do not report it stop doing business with a company, without ever letting them know why. This may explain the disconnect – as far as businesses are concerned, if customers don’t complain to them, there isn’t a problem.
Based on our research, here are the 10 most important things customers want you to know about customer service:
1. Businesses are being run based on what they think they know about customers. Instead they should be taking feedback from the outside and using it to improve customer service
2. Customer preferences are the building blocks for internal efficiencies – company executives need to take customer feedback and put it to work within the business
3. Businesses need to understand that bad customer experiences (even if they never hear about them) have a negative impact on attrition, so maintaining high quality customer service is imperative
4. Despite not telling a business about a poor experience, customers will tell their friends and family so not only has a customer gone, the company has no idea why and word is spreading
5. A satisfied customer isn’t necessarily a loyal one. Customers are loyal only when they receive value beyond their usual service expectations. The better the value, the greater the loyalty – although this differs by customer. The “millennial” population, for example, might see automated, fast interactions as desirable while a retiree might attach particular importance to a personalised experience
6. Customers leaving without businesses knowing why can spell the difference between a company’s success and its failure, particularly with defectors spreading the bad feeling among potential new customers
7. Service is key: 74 per cent of consumers would choose ”employees are friendly but prices are high” and 67 per cent would choose ”company treats me as a valued customer” over ”company offers lowest prices”
8. Customers are becoming more distrustful of businesses, particularly in the current economic climate. Companies have to convey trust from the front line and ensure concerned customers have quality experiences that boost trust
9. Being able to speak to a customer service representative does not define superior customer service. A little over half (55 per cent) said they would prefer to solve their issue quickly using an automated system rather than wait to speak to someone on the phone. Companies must balance automated self-service with agent-assisted service and deliver a seamless customer experience across all channels
10. Millennials are more likely to use automated channels – customers aged 34 and younger are more likely than older customers to prefer quickly solving their issue with an automated system (63 per cent). They see value in social networks and are used to online shopping so want to be able to approach customer service in the same way. Businesses need to embrace technology to ensure the loyalty of a new generation of customers.
In order to reconnect with their customers, organisations need to:
● Get the basics right and ensure they are helping customers when they need it. Customers don’t want to hear about special offers when they’re trying to solve a problem. Businesses should make those offers only when customers are amenable
● Prioritise resolution not speed. Customers want their problems solved and they don’t care how that happens. Companies should empower employees to resolve issues without needing to transfer the customer – even if it takes a little longer
● Create opportunities for customers to provide feedback and encourage leaders to act on that feedback. It’s important to bear in mind that every successful interaction can ensure customer loyalty
Of all the factors that customers were asked to rate, personalisation was ranked least important, below knowledgeable, helpful employees who are able to address customers’ needs on first contact.
Businesses need to understand that superior customer service isn’t about knowing a customer’s name, it’s about addressing each customer’s need in the best possible way. Companies that get customer service right will stand out in today’s crowded and competitive marketplace.
Copyright The Financial Times Limited 2009
By Frank Sherlock, senior vice president sales and professional services at Convergys
Published: May 11 2009 12:14 | Last updated: May 11 2009 12:14
Providing a quality customer experience can be a key differentiator for businesses – yet at this crucial time it seems that companies still don’t know what their customers want.
At Convergys, we recently surveyed 1,000 UK consumers to find out what they really think about customer service and the results were surprising.
First, customers are now in control and we’ve moved from a service economy to an experience economy, meaning successful brands are those that create consistently superior customer experiences.
Second: worryingly, business leaders are still detached from their customers – most executives claimed to have a solid understanding of their customers’ experience and expectations.
Half of consumers, however, say they don’t believe companies understand what customers experience in dealing with them, citing rude employees or no resolution as common bad experiences. More than half (55 per cent) of customers do not believe companies listen or act on feedback.
So consumers are taking matters into their own hands.
Overall, 46 per cent of customers who have a bad experience and do not report it stop doing business with a company, without ever letting them know why. This may explain the disconnect – as far as businesses are concerned, if customers don’t complain to them, there isn’t a problem.
Based on our research, here are the 10 most important things customers want you to know about customer service:
1. Businesses are being run based on what they think they know about customers. Instead they should be taking feedback from the outside and using it to improve customer service
2. Customer preferences are the building blocks for internal efficiencies – company executives need to take customer feedback and put it to work within the business
3. Businesses need to understand that bad customer experiences (even if they never hear about them) have a negative impact on attrition, so maintaining high quality customer service is imperative
4. Despite not telling a business about a poor experience, customers will tell their friends and family so not only has a customer gone, the company has no idea why and word is spreading
5. A satisfied customer isn’t necessarily a loyal one. Customers are loyal only when they receive value beyond their usual service expectations. The better the value, the greater the loyalty – although this differs by customer. The “millennial” population, for example, might see automated, fast interactions as desirable while a retiree might attach particular importance to a personalised experience
6. Customers leaving without businesses knowing why can spell the difference between a company’s success and its failure, particularly with defectors spreading the bad feeling among potential new customers
7. Service is key: 74 per cent of consumers would choose ”employees are friendly but prices are high” and 67 per cent would choose ”company treats me as a valued customer” over ”company offers lowest prices”
8. Customers are becoming more distrustful of businesses, particularly in the current economic climate. Companies have to convey trust from the front line and ensure concerned customers have quality experiences that boost trust
9. Being able to speak to a customer service representative does not define superior customer service. A little over half (55 per cent) said they would prefer to solve their issue quickly using an automated system rather than wait to speak to someone on the phone. Companies must balance automated self-service with agent-assisted service and deliver a seamless customer experience across all channels
10. Millennials are more likely to use automated channels – customers aged 34 and younger are more likely than older customers to prefer quickly solving their issue with an automated system (63 per cent). They see value in social networks and are used to online shopping so want to be able to approach customer service in the same way. Businesses need to embrace technology to ensure the loyalty of a new generation of customers.
In order to reconnect with their customers, organisations need to:
● Get the basics right and ensure they are helping customers when they need it. Customers don’t want to hear about special offers when they’re trying to solve a problem. Businesses should make those offers only when customers are amenable
● Prioritise resolution not speed. Customers want their problems solved and they don’t care how that happens. Companies should empower employees to resolve issues without needing to transfer the customer – even if it takes a little longer
● Create opportunities for customers to provide feedback and encourage leaders to act on that feedback. It’s important to bear in mind that every successful interaction can ensure customer loyalty
Of all the factors that customers were asked to rate, personalisation was ranked least important, below knowledgeable, helpful employees who are able to address customers’ needs on first contact.
Businesses need to understand that superior customer service isn’t about knowing a customer’s name, it’s about addressing each customer’s need in the best possible way. Companies that get customer service right will stand out in today’s crowded and competitive marketplace.
Copyright The Financial Times Limited 2009
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