A study from 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 was conducted in partnership with Opinium Research LLC and 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 center or in-store.
Across all sectors, 57% of consumers have been with their service providers for more than three years. Banks led 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. In the U.S., 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 link between communication channel preferences and retention. Consumers who prefer to engage with organizations digitally are more prone to switching providers. Just under half (49%) of those who prefer to engage with organizations 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 organization’s loyalty program
- 19% more likely to leave a positive review