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Poor Customer Service is Eroding Customer Loyalty to Retail Brands
|By Business Wire
|August 20, 2014 04:00 AM EDT
New research commissioned by customer service specialists KANA®
Software, A Verint®
Company (NASDAQ: VRNT), suggests poor customer service is eroding
consumer loyalty and confidence in retail brands.
Nearly one-third of U.K. consumers (30 percent) have become less loyal
to retail brands in the past five years, according to a survey of 2,000
consumers carried out by Vision Critical on behalf of KANA. One-quarter
of those customers identified poor service as the main reason for this
One major issue for customers was the number of times they had to repeat
their complaint to different people within the same company. Almost half
of respondents (48 percent) said they had to repeat information during
their last communication with a retailer.
All age groups identified repetition as a problem; however, it occurs
most frequently for customers under the age of 35—with one in 20
repeating themselves at least five times. Only 30 percent of these
younger customers had their issue resolved after one interaction. By
contrast, 64 percent of customers over the age of 65 did not have to
repeat their complaint at all, feeling satisfied after first contact.
This apparent disparity between levels of service has the potential to
drive younger consumers elsewhere. Of those who feel less loyal to
retail brands, 37 percent of 18-to-24-year-olds cite service as the key
factor versus just 20 percent of those aged 65 and older.
“By forcing consumers to repeat themselves, often several times over a
prolonged period, organisations not only deliver inefficient service
that costs them money—they seriously affect future consumer loyalty,"
says Steven Thurlow, head of worldwide product strategy for KANA. "The
need for repetition shows not only poor management of customer data,
channels and context, but more fundamentally a lack of ownership of the
consumer’s problem and lack of appreciation for their effort levels.”
"The younger generation has higher expectations of digital channels,
collaborative and social communications and asks ‘how hard can it be.’
They won’t take seriously an organisation that is unable to do the
basics right, and these expectations are rising all the time," Thurlow
In the past six months, more than one-in-10 adults polled have used at
least five different customer channels to contact a retailer. This
research supports other studies from KANA showing that U.K. consumers
regularly use multiple different channels of contact. Web-based chat,
email and face-to-face in store came out as the most popular choices for
customer engagement with preference varying between age groups.
“When you have an issue, you want to speak to someone who knows your
back history and is able to take action on your behalf. Repetition
causes frustration and makes customers feel devalued or, worse,
completely ignored. Without a true sense that different channels of
communication are linked, people feel that they are wasting their time
and, ultimately, this leads to an erosion of loyalty in the retail
brand,” Thurlow adds.
About the Research
Vision Critical conducted an online survey among 2,006 randomly selected
British adults aged 18-80 in June 2014. The margin of error—which
measures sampling variability—is +/- 2.2%. The results have been
statistically weighted according to the most current age, gender, region
data and newspaper readership data to ensure the sample is
representative of the entire adult population of Great Britain.
KANA®, A Verint® Company, is a leading provider of
cloud and on-premises customer service solutions. KANA helps global
organizations—including many of the Fortune 500, mid-market businesses
and public sector agencies—optimize their engagements
with consistent and contextual customer journeys across agent, web,
social and mobile experiences. Using KANA solutions, organizations can
reduce operational costs, increase resolution rates and improve brand
loyalty. Learn more at www.kana.com.
About Verint Systems Inc.
Verint® (NASDAQ: VRNT) is a global leader in Actionable
Intelligence® solutions. Actionable Intelligence is a
necessity in a dynamic world of massive information growth because it
empowers organizations with crucial insights and enables decision makers
to anticipate, respond and take action. Verint Actionable Intelligence
solutions help organizations address three important challenges:
customer engagement optimization; security intelligence; and fraud,
risk, and compliance. Today, more than 10,000 organizations in over 180
countries, including over 80 percent of the Fortune 100, use Verint
solutions to improve enterprise performance and make the world a safer
place. Learn more at www.verint.com.
This press release contains forward-looking statements, including
statements regarding expectations, predictions, views, opportunities,
plans, strategies, beliefs, and statements of similar effect relating to
Verint Systems Inc. These forward-looking statements are not guarantees
of future performance and they are based on management's expectations
that involve a number of risks and uncertainties, any of which could
cause actual results to differ materially from those expressed in or
implied by the forward-looking statements. For a detailed discussion of
these risk factors, see our Annual Report on Form 10-K for the fiscal
year ended January 31, 2014 and our Quarterly Report on Form 10-Q for
the quarter ended April 30, 2014 and other filings we make with the SEC.
The forward-looking statements contained in this press release are made
as of the date of this press release and, except as required by law, the
Company assumes no obligation to update or revise them or to provide
reasons why actual results may differ.
VERINT, ACTIONABLE INTELLIGENCE, MAKE BIG DATA ACTIONABLE,
CUSTOMER-INSPIRED EXCELLENCE, INTELLIGENCE IN ACTION, IMPACT 360,
WITNESS, VERINT VERIFIED, KANA, LAGAN, VOVICI, GMT, VICTRIO, AUDIOLOG,
ENTERPRISE INTELLIGENCE SOLUTIONS, SECURITY INTELLIGENCE SOLUTIONS,
VOICE OF THE CUSTOMER ANALYTICS, NEXTIVA, EDGEVR, RELIANT, VANTAGE,
STAR-GATE, ENGAGE, CYBERVISION, FOCALINFO, SUNTECH, and VIGIA are
trademarks or registered trademarks of Verint Systems Inc. or its
subsidiaries. Other trademarks mentioned are the property of their
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