MELVILLE, N.Y.--(EON: Enhanced Online News)--A study from Verint® Systems Inc. (Nasdaq: VRNT) shows a 7% drop in customer retention compared to a similar survey conducted one year ago. This latest large-scale study of more than 24,000 consumers in 12 countries across nine industry sectors was conducted in partnership with Opinium Research LLC and found that consumers who prefer to do business through digital channels are more likely to swap providers than those that engage with businesses though human touch interactions, such as those that take place by phone via the contact center or in-store.
“What’s clear is that a more personal touch in customer service helps drive retention and loyalty. This is a wake-up call for many organizations looking to introduce more digital channels with the aim of reducing costs and improving customer convenience”
Across all sectors1, 57% of consumers have been with their service providers for more than three years. Banks led in terms of customer retention, with 73% of consumers reporting they have been with their provider for more than three years, whereas only 8% said they have been with their bank for less than a year. Mobile phone providers ranked second best, with 63% of consumers remaining with their provider for more than three years.
Japanese companies had the highest retention rates of all countries surveyed—an average of 64% of consumers have been with their providers for more than three years. French companies also fared well, with 60% of consumers staying with their providers for more than three years. In the U.S., 55% of consumers have been with their service providers for more than three years. However, Brazilian, Indian, Mexican and British consumers are more prone to switching. Only 35% of Brazilians reported remaining with their providers for more than three years, followed by 46% of Indians, 50% of Britons and 50% of Mexicans.
The study also shows a clear link between communication channel preferences and retention. Consumers who prefer to engage with organizations digitally are more prone to switching providers. Just under half (49%) of those who prefer to engage with organizations via digital channels have been with providers for more than three years, compared with 58% who prefer to pick up the phone and 57% who prefer to go in-store.
Tapping into the impact that different customer experiences have on loyalty and brand endorsement, the research highlights that consumers who have a good customer service experience on the phone or in-store are more likely to behave positively toward a brand than when online. The study also revealed that consumers who have good experiences either in-store or speaking to someone on the phone are:
- 38% more likely to renew their product or service, even if it isn’t the least expensive option
- 27% more likely to sign up to an organization’s loyalty program
- 19% more likely to leave a positive review
“What’s clear is that a more personal touch in customer service helps drive retention and loyalty. This is a wake-up call for many organizations looking to introduce more digital channels with the aim of reducing costs and improving customer convenience,” notes Rachel Lane, director of customer analytics, EMEA at Verint. “As our research shows, consumers feel more positive about a brand when they interact directly with a person, so organizations need to consider how to make the digital experience more personal to avoid increased customer churn.”
Adds Lane, “Our research, which also investigated what service providers and brands believe their customers want, revealed that 91% recognize that customer service online should be quicker, more intuitive and better able to serve customer needs. That means organizations now need to focus on providing a more personal experience across all customer engagement channels to build the foundation for loyal customer relationships.”
1 Sectors surveyed: bank, bricks and mortar retailer, credit card, insurance, mobile phone provider, online retailer, telecommunications, travel, utilities.
About the Research
This research was commissioned by Verint from June 23 to July 20, 2016 in association with Opinium Research LLP, a UK-based research company. Interviews were conducted amongst 24,001 consumers in the following countries: Australia (2,000), Brazil (2,000), India (2,000), France (2,000), Germany (2,000), Japan (2,000), Mexico (2,000), Netherlands (2,000), New Zealand (2,000), South Africa (2,000), UK (2,001) and US (2,000). The research was conducted online, in the local language for each area country, and respondents were incentivized to participate.
As part of this study, Verint partnered with research and advisory firm IDC to launch the report titled The Digital Tipping Point: How Do Organizations Balance the Demands for Digital and Human Customer Service? This report, which is downloadable at www.verint.com/digital-tipping-point, shares insights, practices and advice for organizations on which channels and methods of contact matter most to consumers today, and how this differs across service query types, industries, territories and demographics.
About Verint Systems Inc.
Verint® (Nasdaq: VRNT) is a global leader in Actionable Intelligence® solutions with a focus on customer engagement optimization, security intelligence, and fraud, risk and compliance. Today, more than 10,000 organizations in approximately 180 countries—including over 80 percent of the Fortune 100—count on intelligence from Verint solutions to make more informed, effective and timely decisions. Learn more about how we’re creating A Smarter World with Actionable Intelligence® at www.verint.com.
This press release contains “forward-looking statements,” including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Verint Systems Inc. These forward-looking statements are not guarantees of future performance and they are based on management's expectations that involve a number of risks, uncertainties and assumptions, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. For a detailed discussion of these risk factors, see our Annual Report on Form 10-K for the fiscal year ended January 31, 2016, our Quarterly Report on Form 10-Q for the quarter ended October 31, 2016, and other filings we make with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release and, except as required by law, Verint assumes no obligation to update or revise them or to provide reasons why actual results may differ.
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1 APPENDIX: Customer Retention Figures Across All Vertical Sectors
The below question from Verint’s Digital Tipping Point research study was asked of 24,000+ consumers across 12 countries.
“For the following services, where relevant, please tell us how long you have been with each provider. If you use more than one, please think about your main provider.”
|More than three years (2016)||52%||63%||58%||73%||50%||59%||61%||39%||25%|
|More than three years (2015)||58%||65%||59%||80%||50%||62%||71%||41%||n/a|
|Less than a year (2016)||11%||12%||12%||8%||8%||13%||10%||13%||14%|
|Less than a year (2015)||8%||9%||9%||4%||5%||10%||5%||8%||n/a|