No Second Chances: New Northridge Group Study Reveals 72% of Consumers Will Likely Switch Brands After Just One Bad Service Experience

ROSEMONT, Ill.--()--New data provides a clear message for businesses. Today’s consumers are unforgiving when it comes to poor customer experience. In fact, 72% of consumers report they are likely to switch to a competitive brand after just one bad experience. According to The Northridge Group’s State of Customer Service Experience 2019 report, consumers want an effortless path to the resolution of their product and service issues yet more than one-third of consumers still find it difficult to even establish contact with the company in question.

Consumers believe they are having to work too hard to resolve their issues.

  • 60% experience difficulty navigating phone systems equipped with Interactive Voice Responses (IVR)
  • 68% experience a long wait time to reach an agent
  • 64% experience difficulty using websites
  • 57% frequently have to repeat themselves to the customer service agent
  • 30% frequently speak with an agent who isn’t friendly or polite

The reality is that just 53% of consumers report being able to resolve their issues the first time they contact a company. According to Pam Plyler, Executive Practice Lead of Customer Experience at The Northridge Group, “Best practice is 85%+, so there is still much room for improvement.”

What Gets Measured Gets Done

The new Northridge report suggests that businesses are overly optimistic about the experience they are delivering, possibly because they aren’t adequately measuring customer effort. Feedback from business leaders indicates that, when measuring customer service effectiveness, only 25% of businesses even measure the customer effort required for issue resolution despite the fact that advanced data analytics now makes it easy and efficient to measure customer effort compared to traditional surveys. “If you’re not measuring it, you can’t manage it,” says Daren Moore, President of The Northridge Group. “The measurement of customer effort is a crucial investment that promotes customer loyalty and prevents backlash.” An astounding 86% of consumers report they tell others about bad experiences they have with companies and negative social media posts can quickly spiral out of control, causing permanent damage to a brand.

For Complex Issues Phone is Still King

According to the 2019 Northridge Group survey, real-time talk with a customer service rep still ranks at the top. Phone remains the fastest, easiest, and most preferred customer service channel. While digital channels made gains in 2019, preference for email has decreased during the same timeframe.

“Phone and online chat are perceived to provide a one-on-one service experience,” says Bryan Gillis, Executive Practice Lead, Quality Solutions & Customer Analytics at The Northridge Group. “Consumers have the highest expectations for resolution and speed of response from live-assisted channels. Simple issues are often resolved on company websites but more complex situations require the human touch.” Given that these interactions are more complex, it is critical that the level of quality, engagement, and personalization provided meets or exceeds the customers’ expectations.

Business Leaders Are Grading Themselves Too High

The Northridge Group has published this report annually since 2015 and began including survey responses from business leaders in 2018. The combined 2019 study of more than 1,000 U.S. consumers and more than 300 business leaders uncovered a significant discrepancy between how business leaders and consumers view investment priorities. While businesses are prioritizing investments that differentiate their own brands, consumers would prefer that they focus on the basics including:

  • Making customer service available 24/7
  • Reduction of wait times for customer service calls
  • Improvement of telephone menus to make it easier to get to the right customer service rep faster

You may view the full Northridge Group State of Customer Service Experience 2019 report here.

About The Northridge Group

The Northridge Group is a leading management consulting firm specializing in Customer Experience solutions, Quality Monitoring services and Business Transformation initiatives. We lead with advanced data analytics and utilize business process redesign to deliver measurable outcomes for our clients. Founded in 1999, the firm serves Fortune 200 and mid-market enterprises in the healthcare, telecom, financial services, travel, and transportation industries, as well as key government agencies. For more information on The Northridge Group, visit www.northridgegroup.com.

Contacts

The Northridge Group
Katie Francis
847.692.7053
katie.francis@northridgegroup.com

Release Summary

The Northridge Group’s State of Customer Service Experience 2019 report reveals customer experience discrepancies between businesses and consumers.

Contacts

The Northridge Group
Katie Francis
847.692.7053
katie.francis@northridgegroup.com