SA still short on customer service

“These markets share a common element, a younger and more demanding consumer market. Technology has made the world more accessible to this younger market and given them easier access to developed markets, either through online purchasing or travel, opening up their purchasing options vastly,” says Nikki Tyrer, CRM Lead Accenture South Africa. “Given the impatience typically intrinsic to younger consumers, they are more inclined to complain or switch providers as a result of bad service.”

Switching brands

The consumer satisfaction survey revealed that when these requirements are not met, consumers are more likely to defect to a competitor than before. In 2009, 69% of all consumers switched providers at least once in the preceding year due to poor customer service, with the highest level of defectors switching brands in the retail (31%) and banking (27%) sectors.

Tyrer adds, “Consumers in emerging markets are an important growth opportunity for many companies and this market segment should be seen as vital to the success of South African companies, considering that the rate of switching is higher in other emerging markets, with South Africa at a defection rate of 81%.

Seeking service, options

According to the report, consumers are looking for four specific things:

• More convenient customer service (74%);
  
• More knowledgeable or better-trained representatives (67%);
  
• Faster customer service (66%);
  
• More channel options for getting service (64%).

“We all understand the importance of customer service and the impact that good customer service has, not only our image as an organisation, but on our bottom line. However, while customer expectations are on the increase, companies are not cognisant of the full impact of bad service on their business and seem to continuously fall short of providing quality service,” continues Tyrer.

One size doesn't fit all

The group believes that these findings show how imperative it is that organisations finally leave behind the “one size fits all” approach to customers and fully embrace a service model that provides differentiated service experience based on expectations and a closely understood customer segments and the current and potential value of those segments. Organisations will best be positioned to outperform their competitors that recognise that they need not be all to things to all people.