Research Across Consumers in 12 Countries Finds Those That
Prefer Digital Engagement Channels to Human Customer Service Are
More Likely to Switch Brands or Service Providers
- 57% of consumers across all sectors
have been with their service providers for more than three
years.
- Consumers in India, Mexico, Brazil and
the UK are more prone to switch, while French and Japanese
consumers stay with their providers longer.
- Banks lead the way in terms of customer
retention, with consumers noting they are more likely to switch
credit card providers or travel agents.
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.
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.
Learn More
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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WITNESS, VERINT VERIFIED, KANA, LAGAN, VOVICI, GMT, VICTRIO,
AUDIOLOG, CONTACT SOLUTIONS, OPINIONLAB, CUSTOMER ENGAGEMENT
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SUNTECH, and VIGIA are trademarks or registered trademarks of
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are the property of their respective owners.
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.”
Insurance
Company
Mobile
Phone
Home
Telephone/Landline/
Broadband
Company/Cable/Pay
TV
Bank
Credit
Card
Utilities:
Gas/
Energy/
Water
Brick-and-Mortar
Retailer (e.g.,
Supermarket/
Grocery Store/
Clothes Shop)
Online
Retailer
Travel 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
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170110005145/en/
Verint Systems Inc.Industry Information:Candace
Flynn, 303-254-7152candace.flynn@verint.comorSian Sparkes, +44 (0)
1932 50929sian.sparkes@verint.comorInvestor Relations:Alan
Roden, 631-962-9304alan.roden@verint.com
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