New global research study is "a wake-up call'

The research finds that while just about all respondents (94%) in South Africa agreed that good service makes them feel more positive about brands, two-thirds (59%) also said they are suspicious about how their data is used. Furthermore, 54% of South African consumers felt that customer service was more of a transactional relationship than personal and 46% think that customer service is an experience that should reflect them as a person. They were less concerned about companies knowing their mood and responding accordingly (15%), and more concerned about getting their questions answered (85%). A significant number (59%) said mistakes make them think about switching.

© Natalia Merzlyakova – 123RF.com

This study is a wake-up call for brands looking to revamp their customer service to cater today's more demanding and better informed customers," says Jeremy Cox, Principal Analyst, Customer Engagement of Ovum. "While brands have the ability to precision-target highly personalised communications for every single customer, the study shows what people around the world actually value most are the basics-questions answered with minimal effort on their part."

Cox added: "Brands therefore have a fine balance to strike between the customised and impersonal service they deliver. Customers expect to be recognised, but will have adverse reactions if they feel stalked."

The impact of poor service

This study also explored the impact of poor service on switching behaviour, as well as the benefits brands can reap if they get it right. Though cheaper pricing is the single biggest motivation for switching (24%), rude staff (18%) and too much effort to get what they need (13%) are second and third on the list. The research also found that good experiences can have a powerful impact on customers' attitudes to brands. In fact, 79% of respondents said they would tell friends and family about their experiences, while half (49%) would write positive reviews. Also, 46% will renew or upgrade products and services even if it wasn't the cheapest option.

Rachel Lane

"The rules of customer engagement have less to do with personalisation at all costs, and everything to do with making life easier for people," commented Rachel Lane, Director Voice of the Customer Analytics EMEA of Verint. "On the whole, consumers have no patience with firms that don't get the basics right. This is a challenge for providers and an opportunity to help ensure frontline staff have information at their fingertips to deliver a quick and seamless service relevant to each customer's individual needs. Staff should be empowered to make decisions and 'go the extra mile' when required."

Verint has partnered industry analyst Ovum to launch a new report titled Customer Centricity: The Rules of Engagement. The study advises organisations on how to tailor offerings to boost customer trust and retention across demographics.

About the research

Interviews were conducted amongst 18,038 consumers in the following countries: Germany (2006), France (2001), The Netherlands (2002), Poland (2001), the UK (2004), South Africa (2010), the US (2007), Australia (2007) and New Zealand (2000). The research was conducted online, in the local language for each area and respondents were incentivised to participate. The results outlined in this document were based on South African consumer responses.