What is the #1 factor for you to stop wanting to do business?
Do you ever wonder the main reason why you stop doing business with a brand or company? Customer loyalty is never guaranteed and can change with any unsatisfactory interaction. There are a multitude of options out there which makes customers quick to jump after a bad service experience.
is there no more brand loyalty?
According to Coveo Solutions Inc., 76% of shoppers will give up on a brand after three negative service experiences, This is a whopping 73% increase from last year. Another 12% will drop out after a single bad experience. And frequency aside, 96% say a negative service experience affects whether they will buy from the company again.
brands don't know what hit them
Customers are becoming more ruthless than ever. Over 50% of customers won’t even complain. One or two bad experiences and they are out the door and the brands have no idea why. This means email marketers will lose response without ever knowing what hit them.
The reasons why vary with the generations. Baby boomers want to speak to a live person and 52% will drop the brand if they can’t. On the other hand, 40% of Gen Zs will leave if they can’t resolve an issue on their own.
Conflicting Information
Another factor threating customer loyalty is conflicting information. For instance, 22% of customers overall will abandon a brand when they are getting conflicting information from customer service and support agents. 41% of the information given to the average person in customer support is incorrect. This means brands need better information systems.
Sawan Deshpande, vice president and general manager of service at Coveo says, “Service is a crucial element in keeping customers happy and ultimately, preserving brand loyalty, but every customer journey is unique, and no agent can account for the nuance of every single support touchpoint alone.”
Carolina Macedo, the author, is Project Coordinator of Marketing Keys.