Verint's Study Shows Higher Attrition Among Digital Consumers

 Verint's Study Shows Higher Attrition Among Digital Consumers
12.01.2017 08:45 am

Verint's Study Shows Higher Attrition Among Digital Consumers

Infrastructure

Verint® Systems Inc. shows a 7% drop in customer retention compared to a similar survey conducted one year ago. This latest large-scale study of more than 24,000 consumers in 12 countries across nine industry sectors—conducted in partnership with Opinium Research LLC—found that consumers who prefer to do business through digital channels are more likely to swap providers than those that engage with businesses though human touch interactions, such as those that take place by phone via the contact centre or in-store.

Across all sectors,57% of consumers have been with their service providers for more than three years. Banks lead in terms of customer retention, with 73% of consumers reporting they have been with their provider for more than three years, whereas only 8% said they have been with their bank for less than a year. Mobile phone providers ranked second best, with 63% of consumers remaining with their provider for more than three years.

Japanese companies had the highest retention rates of all countries surveyed; an average of 64% of consumers have been with their providers for more than three years. French companies also fared well, with 60% of consumers staying with their providers for more than three years. Meanwhile, in the US, 55% of consumers have been with their service providers for more than three years. However, Brazilian, Indian, Mexican and British consumers are more prone to switching. Only 35% of Brazilians reported remaining with their providers for more than three years, followed by 46% of Indians, 50% of Britons and 50% of Mexicans.

The study also shows a clear link between communication channel preferences and retention. Consumers who prefer to engage with organisations digitally are more prone to switching providers. Just under half (49%) of those who prefer to engage with organisations via digital channels have been with providers for more than three years, compared with 58% who prefer to pick up the phone and 57% who prefer to go in-store.

Tapping into the impact that different customer experiences have on loyalty and brand endorsement, the research highlights that consumers who have a good customer service experience on the phone or in-store are more likely to behave positively toward a brand than when online. The study also revealed that consumers who have good experiences either in-store or speaking to someone on the phone are:

  • 38% more likely to renew their product or service, even if it isn’t the least expensive option.
  • 27% more likely to sign up to an organisation’s loyalty programme.
  • 19% more likely to leave a positive review. 
     

“What’s clear is that a more personal touch in customer service helps drive retention and loyalty. This is a wake-up call for many organisations looking to introduce more digital channels with the aim of reducing costs and improving customer convenience,” notes Rachel Lane, director of customer analytics, EMEA at Verint. “As our research shows, consumers feel more positive about a brand when they interact directly with a person, so organisations need to consider how to make the digital experience more personal to avoid increased customer churn.”

Adds Lane, “Our research, which also investigated what service providers and brands believe their customers want, revealed that 91% recognise that customer service online should be quicker, more intuitive and better able to serve customer needs. That means organisations now need to focus on providing a more personal experience across all customer engagement channels to build the foundation for loyal customer relationships.”

Related News

Forecast by Robocash Group: 5G will boost financial inclusion in emerging markets in Asia

Driving improvements in the digital space, 5G has accelerated financial inclusion in emerging markets in Asia. Analysts of the financial holding ... Read more »

Meniga closes a €8.5m strategic investment round led by Groupe BPCE, Grupo Crédito Agrícola & UniCredit

Meniga, a leading provider of digital banking technology for the world’s largest banks, has closed a €8.5m strategic investment led by customers Groupe BPCE, the second-largest... Read more »

LzLabs and T-Systems Team Up to Drive Mainframe Transformation

LzLabs today announced an Agreement with T-Systems, one of the world-leading cross-manufacturer digital service providers,... Read more »

Sopra’s Financing Platform Helping Fuel Hyundai Capital America’s Expansion

Sopra Banking Software announces the go-live of its Cassiopae leasing and lending software at Hyundai Capital America (HCA). Cassiopae, part of the Sopra Financing Platform, is... Read more »

ZagTrader Boosting Startups globally with its New Program - ZagStartUp

ZagTrader has announced today the launch of its new program ZagStartUp to provide a boost to the startup ecosystem in the financial market sector. ... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel