BUSINESSES COULD LOSE 6.5% OF REVENUE DUE TO BAD CUSTOMER EXPERIENCES, RESEARCH REVEALS
Qualtrics, an experience management business, released findings from its 2022 Global Consumer Trends report. The research found that 70% of people in the UK had a poor customer experience in 2021, putting an estimated 6.5% of revenue is at risk.
The 2022 Global Consumer Trends report aimed to demonstrate the value of personalised human relationships to brands looking to build back after the pandemic. The survey of 24,000 respondents across 24 countries found that 62% of global consumers believe companies need to show a better sense of care towards its customers.
Of the 1,000 people surveyed in the UK, 7 in 10 people said they believe customer experiences need to be improved. The importance of positive brand communications was evident, as poor customer service was cited as the second most common reason for cutting spend with a brand, behind price and fees at the top reason.
Bruce Temkin, head of the Qualtrics XM Institute, says, “As customers flocked to digital over the past 18 months, companies have made some initial changes but have failed to consistently respond, leading to fragmented and frustrating customer journeys and support as they switch from one channel to the next.”
Listening to customer feedback was cited by 63% of global respondents, and 47% of those surveyed in UK, as area in which brands must improve. The economic risk facing those businesses that fail to do so are more prevalent post-pandemic as the UK continues to experience a wave of resignations, rising unemployment and higher product prices.
While the UK unemployment rate has fallen to 4.3% since the previous high of 5.2% in October to December of 2020, there are still 1.17 million job vacancies. Product prices are also on the rise, as the Consumer Prices Index for October 2021 rose by 4.2% in the 12 months between October 2020 and 2021. This data means businesses will need to improve customer service and experience to ensure profits make up for the rising cost of goods.
Read the full 2022 Consumer Trends report here.