Almost all consumers abandon brands after one bad experience

Nearly eight out of every 10 study respondents indicated they would stop doing business with a company after just one bad experience, according to a new study commissioned by LogMeIn and published on Thursday. Moreover, 72% indicated that they would advise family and friends to do the same.

The study was conducted by customer experience consulting group Fifth Quadrant in India and Southeast Asia to better understand the attitudes, expectations and behavioral preferences of customers today, according to LogMeIn.

Conducted over a period of three months, the study involved slightly more than 2,500 users, with around 1,500 of them coming from Malaysia, Singapore and The Philippines, and the remaining 1,000 from India, according to the report.

Some key frustration identified by the report:

  • 43% of respondents said that they are most frustrated with the time taken to reach a representative and resolution time. Long hold times and automated service menus irritate customers who are keen to get fast resolutions to their problems.
  • Specifically, a majority of respondents indicated that they expected a response within 10 minutes if they had made the query by phone call (73%) and live chat (71%).
  • While traditional channels offer the highest level of customer satisfaction, 69% of respondents indicated they prefer online and mobile channels.

The number could have serious implications for businesses that lag behind in delivering a positive customer service experience and engagement, concluded LogMeIn, noting that the onus is on organizations to pinpoint the cause of consumer dissatisfaction and make changes to improve retention and recommendation behavior.

Digital channels could be better

Importantly, the study found that while digital channels require 8.3 interactions by the consumer for each issue resolution on average, traditional channels only required 2.8 interactions per query.

The takeaway here is how it suggests that current digital channels are not as efficient as traditional channels for query resolution. As customers are likely to take the path that will lead to a faster resolution, this will burden traditional channels and culminate in inefficiency where digital channels are concerned.

According to LogMeIn, organizations need to ensure they have integrated systems in place to track the customer’s history across channels in order to deliver a seamless experience.

“As available support channels continue to increase, it is important for customer service departments to be equipped with the tools to help meet the constant demand for better and faster resolutions,” said Dan Cran, director, APAC at LogMeIn. “Those that constantly deliver positive and customized experiences will create loyal customers and pull ahead of the competition.”

Of course, while it may be true that an unhappy customer may desire to abandon a brand, it may not always be possible or practical to do so. Take the telecommunications sector in Singapore – which represents 71% of those surveyed – having just three mobile operators today mean that customers may have no choice but to continue with their current brand.

The full report can be accessed here (pdf).

Additional reading:

Brand Alliance reveals the top brands in Singapore

Increasing customer loyalty and brand recognition through play Primary tabs

Brand loyalty in the region has a six second shelf life