Digital disruption has caused a steady erosion of customer loyalty despite companies’ customer retention efforts.
Consumers continuously evaluate providers and have become nonstop customers. The tangible result is a growing “switching economy” that accounts for an estimated $6.2 trillion in revenue opportunity for providers across 17 key markets today—up 26 percent, from $4.9 trillion, in 2010.
To tap into new revenue growth potential, companies must adopt new customer centric practices, including offering an integrated customer experience across digital and analog channels to meet customers’ preferences.
Today’s customer experience and journey is dynamic, accessible and continuous. Every customer is a digital customer, but not all move at the same speed.
Our 10th year of research shows providers are not meeting customers’ expectations, creating customer retention issues:
Fifty three percent of US consumers switched providers due to poor service in at least one industry...
However, 80 percent of poor service switching could be avoided through better resolution.
Only 10 percent strongly agree companies effectively converge interactions across digital, social, mobile and traditional channels.
Eighty four percent are frustrated by companies that promise one thing but deliver another.
Eighty one percent of prospective buyers are frustrated because the company doesn’t make it easy to do business with them.
Twenty four percent want more digital interactions than currently offered by providers.
Thirty four percent would be open to offers from nontraditional players.
How can you capture your share of this revenue growth opportunity? Start by becoming a “multi-speed” customer centric company. This means:
Moving beyond the one-size-fits-all customer agenda to improve the customer experience in ways that are truly noticed and valued.
Avoiding incremental improvements in favor of more impactful, differentiated programs guided by customer analytics and a test-and-learn competency.
Mastering an integrated approach to both analog and digital channels that matches multiple customer segments’ preferences.
While many companies have been admiring the opportunities digital brings, they have been focused on ‘doing things better’ when getting dramatic results comes from 'doing things differently'.