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Home Customer Experience News Poor Customer Experience Affects Customer Loyalty, Study Confirms

Poor Customer Experience Affects Customer Loyalty, Study Confirms

One in three consumers have considered leaving a brand due to poor CX services and another 65% have acted on that consideration, according to a recent Sitel Group research on customer loyalty and perceptions. The study, titled “Driving Loyalty: Perception, Effort and Action,” reaffirms the importance of brands and companies investing into CX and cultivating loyalty and positive expectations.

Sitel Group is a CX company that provides management services and digital solutions to 27 countries. The whitepaper shows findings based on research and surveys on consumer behaviors in the UK and US during the first quarter of 2021. Although keeping the customer at the forefront of the company goals is not a new concept, the data indicates that effectively retaining and connecting to customers is not as simple. Research shows that online reviews have an influence on the purchasing decisions of 93% of consumers with both negative and positive experiences being shared in similar proportions, yet only 43% believe that brands’ effort to deliver positive CX are tangible, meaning there is a significant CX gap.

Nowadays, technology enables consumers to find a wider variety of companies faster, and for companies to target their consumers and respond to their needs more directly. This means companies need to adapt to higher competition and continue evolving strategies to create loyalty. Customer loyalty translates to customer advocacy. This is supported by the fact that one third of consumers thought about discontinuing using a brand because of poor CX services. Those reasons can include unfriendly staff, slow service, poor value or support, unethical practices, or lack of commitment to ethical causes, and poor digital design. 

Although there were some differences in brand expectations based on age, value for money was named as the biggest driver of brand loyalty across all the generations surveyed. There are clear markings as to what constitutes good CX that brands should be paying attention to: the most important one being good service, such as friendly and knowledgeable staff that are easily accessible, with 24/7 help availability and efficiency. Next is delivering programs that include offers, promotions, and reward loyalty, followed by omnichannel technology use with chat options (chat bots moving to live chat agents), contactless and automated services, and self-service.

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