According to a recent study, American companies are in the middle of a $136 billion “switching epidemic,” with consumers dumping their current service providers at a growing rate.
That’s great news for you… if you’re a leader in customer experience. If you’ve taken your eye off the CX ball lately, though, it’s a danger sign.
Read the article here to see what today’s American consumers are saying about their expectations of you – and what they do when you disappoint them. Consider the fact that fully 58% of consumer respondents said their reason for churning was either a lack of “reward for loyalty” or a feeling of being treated unfairly.
If you’d like to know more about how Skybridge Americas can deliver a superior customer experience on every inbound call, please reach out. We would love to learn about your business goals and share how we can help you achieve them.
New Research Finds Not Valuing Customers Leads to $136 Billion Switching Epidemic
by MTS Staff Writer
Communications Suppliers, Banks and Property Insurance Lead Customer Churn Risk in the CallMiner Index
New research released by CallMiner, the leading platform provider of award-winning speech and customer engagement analytics, reveals that US businesses have contributed to a switching epidemic by not valuing customers or listening to them when they have problems. And it’s costing them billions. In fact, a conservative estimate of the price of switching is $136 billion per annum.
The report features survey responses from US adults who had contacted a supplier in the last five years. Titled the CallMiner Index, the report shows that 85% of adults switched suppliers 1.81 times in the last 12 months. The sectors that top the CallMiner Index over both the last five years and the last 12 months are:
Sector Position Last Five Years
- Communications companies* (71%)
- Banks (32%)
- Property Insurance suppliers (27%)
Sector Position Last 12 Months
- Communications companies (51%)
- Insurance companies (24%)
- Property Insurance suppliers (20%)
* Communications includes mobile telephone, broadband and landline telephone.
The pace of switching is accelerating
The CallMiner Index reveals that the average switching rate over five years is 0.68 times per annum. The rate for the last 12 months is almost 2.5 times higher at 1.81 times – showing that the pace of switching is accelerating.
New customers valued more than existing ones
The survey shows that consumers feel new customers are treated better than loyal customers and that suppliers are focusing more on acquisition than retention. The third highest reason for churn (30%) is that there is no reward for contract renewal, i.e. no reward for loyalty. The fifth highest reason (27%) is that discounts offered to new customers are not automatically given to existing customers. This reinforces the sense that existing customers can feel less valued than new customers…
Senior Vice President, Sales and Marketing
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