Management / Bad experiences driving customers away from firms
Bad experiences driving customers away from firms
4 June 2015
Nearly two thirds of consumers will stop recommending a firm, disparage it via word of mouth or on social media, or seek an alternative brand following a customer experience failure, according to a report.
According to SDL’s study of customers’ experiences over the last 10 years, 64 per cent of consumers will take this kind of action if a business does not live up to their expectations.
90 per cent of customers will spend less with the firm over the next year, with the remaining 10 per cent locked into a contract or without an alternative.
During the year after a failure, brands lose 65 per cent of the revenue previously contributed by the customers that they have failed.
SDL’s chief marketing officer Paige O’Neill said: “Consumers have high expectations for brands today and little patience for a breakdown in experience.
“While the good is expected, the bad will go viral. Keeping this in mind, organisations must have an integrated strategy in place that caters to each individual consumer and empowers employees to meet customers’ needs.”
A third of customers will leave a firm following a bad customer experience, but 30 per cent say a business that demonstrates improvement could win them back.
However, in reality, this only works eight per cent of the time for disgruntled customers.
The research shows that the most successful ways to win consumers back are with offering a genuine and personal apology, admitting failure, and offering related discounts or credits.
For more on the report, see the SDL website.