09 July 2014
Despite more data being used nowadays to identify consumer preferences, companies are still losing out on a whole lot of potential revenue when their customers switch to other brands or service providers. Many companies simply do not offer a good enough user experience to retain their customers.
Just how much potential revenue is being lost? According to the Global Consumer Pulse Survey by Accenture, there is a potential $1.3 trillion – that’s with a “trillion” – at play in the switching economy of the United States. The switching economy represents those customers that jump to other brands rather than showing loyalty. And the switching economy is even larger on a global scale with $5.9 trillion of revenue at stake.
The study goes on to prove, however, that companies have the power to prevent switches. Like Smokey the Bear says, “Only you can prevent wildfires.” Well, it’s also up to you to prevent customer switching.
Your ally in this goal is the oft-overlooked user experience. In fact, 81% of the many switchers from the survey reported that the company they dealt with could have done something differently to prevent the switch.
The Accenture study showed that the user experience equals price in importance to customers. And the study also indicates that self-service is a priority for many potential customers (and potential switchers).
Take a look at these numbers: 91% of survey respondents said they are frustrated when they have to contact a company multiple times for the same reason; 90% feel they get put on hold for too long; and 89% get frustrated by having to repeat their issue to multiple company representatives.
These issues are often within your control. By offering robust self-service options online, you improve the user experience and reduce the chance of customers switching to another company.
When customers have the option of going to your website, they don’t need to repeat their problems endlessly or stay on hold, listening to over-modulated elevator music. Quality websites enrich the user experience, so your customers research and learn about your products and services on their own time.
Customers like dealing with companies that they like dealing with. It’s downright tautological! But unfortunately, too many companies are neglecting the importance of having their customers like dealing with them.
85% of customers are frustrated when a company does not make it easy to do business with them. That statistic is very telling. Making it easy to buy is a huge aspect of retaining your customers.
Offering tailored experiences to your website visitors and providing a good mobile user experience are two other aspects where companies showed room for improvement. Tailored content or product offerings make it easier for customers to find what they’re looking for. And mobile responsiveness shows that you are available for your customer, no matter what device they want to use.
The major takeaway from this study is a lot of potential revenue is lost to switching, but it doesn’t have to be that way. Improve your user experience and your customers might stick around instead of switch around.