Despite having more data and insights into consumer desires and preferences, companies in the U.S. have failed to meaningfully improve customer satisfaction or reverse rising switching rates among their customers. As a result, there is a potential $1.3 trillion of revenue at play in the U.S. market represented by the “switching economy,” according to new research released by Accenture (NYSE:ACN)*.
The research revealed that 51 percent of U.S. consumers switched service providers in the past year due to poor customer service experiences, up five percent from 2012. Switching rates were highest among retailers, cable and satellite providers and retail banks – making companies in these sectors the most vulnerable, but also giving them potentially the most to gain.
Accenture’s analysis of consumer spending forecasts and switching rates revealed by the survey shows that $1.3 trillion of revenue is being transferred between companies in the U.S., forming a sizeable “switching economy.” The findings are published along with the ninth annual Accenture Global Consumer Pulse Survey, which measured the experiences of 12,867 customers in 32 countries and across 10 industries to gain insight into the changing dynamics of today’s “nonstop” customers and assess consumer attitudes toward marketing, sales and customer service practices. The survey included 1,256 U.S. customers.
The survey found that customers are increasingly frustrated with the level of services they experience: 91 percent of respondents are frustrated that they have to contact a company multiple times for the same reason; 90 percent by being put on hold for a long time; and 89 percent by having to repeat their issue to multiple representatives. There are also frustrations with marketing and sales practices: 85 percent of customers are frustrated by dealing with a company that does not make it easy to do business with them; 84 percent by companies promising one thing, but delivering another; and 58 percent are frustrated with inconsistent experiences from channel to channel.