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Poor customer service could cost brands thousands per customer, new research finds

January 20, 2018 Statistics & Trends No Comments Email Email

 LivePerson, Inc., the leading provider of cloud mobile and online business messaging solutions, has released the results of its Australian consumer research that explores what drives Australian brand loyalty. According to the research, 31.7 per cent of respondents stated they’ve been loyal to the same brand for more than 10 years with nearly a quarter (23.6 per cent) of all respondents reporting they spend more than $1,000 with their preferred brand per year.

Some of the other key findings are included below.

  • Older consumers (ages 45+) are more likely to be loyal to a brand for 10 or more years (50.5 per cent vs. 21.1 per cent).
  • Nearly half (41.8 per cent) of respondents said they would switch brands if the brand provided poor customer service, and one in five (20.9 per cent) respondents said they would switch after a single bad customer service experience.
  • A majority (52 per cent) of older consumers (ages 45+) report having a nemesis brand — a brand they will never do business with again because of the poor customer service they received.
  • Nearly 20 per cent of those ages 18–44 admitted to cursing or being rude to customer care agents.

As consumer expectations continue to climb, brands are faced with the growing demand to provide quality products and services along with quick and effective customer service. To understand how this impacts brands and drives customer loyalty, LivePerson commissioned a survey of 1,000 Australia-based consumers age 18 and older who identified as being loyal to a particular brand. The full report is available here: https://www.liveperson.com/resources/reports/exploring-brand-loyalty-in-australia/

Quality drives loyalty, according to 45.9 per cent of respondents. This is followed by price (16.1 per cent) and good customer service (15.1 per cent). Interestingly, customer service is the loyalty driver with the most longevity; 53 per cent of those who stated customer service was the most important factor have been loyal to the same brand for more than 10 years.

While Australians demonstrate a strong tendency to be loyal to a particular brand, there is little room for brands to slip up on customer service. Over half of all respondents (51.3 per cent) stated there is a brand they would never do business with again as a result of poor customer service, and one in five (20.9 per cent) said they would switch brands after just one bad customer service experience.

LivePerson’s regional vice president for APAC, Andrew Cannington, said that the concerning thing for brands is that many may not even be aware they are losing customers. Over a third (35.9 per cent) of consumers either don’t tell brands they are dissatisfied or simply stop shopping with them. This figure is far higher for younger generations (18–34 years old), with nearly half (47.4 per cent) ‘going silent’ following a poor brand experience.

“More often than not, brand loyalty comes back to the customer experience,” said Cannington. “That means brands have make it easy and simple for consumers to communicate with them. By designing a conversational customer journey, brands can reach consumers the same way they connect with their friends – through messaging – with personalized interactions, enhancing the overall brand experience.”

This survey was commissioned by LivePerson and conducted online by independent research firm Survata, which interviewed 1,008 Australian consumers ages 18 and older between 27 July 2017 and 04 August 2017. Respondents received no cash compensation for their participation. More information on methodology can be found at survata.com/methodology.

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