CorpComms Magazine

Companies are devoting all their energies to attracting new clientele at the expense of keeping existing customers happy, according to a new study from software company Satmetrix.

Bad customer service has led to ten million consumers switching service providers last year alone, according to estimates from the Office of National Statistics. Whilst a fifth have left on account of poor core products or services, many more have been disappointed by the quality of customer relations.

One in five respondents identified their primary reason for leaving as rude or disinterested employees, 12 per cent could not get hold of anyone to deal with concerns or queries, four per cent considered the refund and returns policy unfair and one in 20 objected most strongly to being diverted to out of territory call centres whenever they had a problem.

UK companies may also be shooting themselves in the foot with promotional bids to pilfer customers from competitors. Seven per cent of consumers surveyed had dropped a company because they resented the unfairness of appealing discounts for new but not existing clientele.

The survey suggests some of the £14 billion that UK companies spend annually on advertising may be better diverted elsewhere when only two per cent of customers trust this source the most when choosing products or services. Product reviews and online opinions encouraged greater confidence whilst personal recommendations from friends, family and colleagues were by far the most bankable accreditations, with half of consumers valuing these most highly.

Deborah Eastman, chief marketing officer at Satmetrix, said: 'Business choices that seem to make sense from a financial point can negatively impact revenue and reputation if consumers don't think they're fair. If companies drop these bad profits, they will likely recoup lost revenue many times over by keeping their customers for longer and acquiring new ones through recommendations.'

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