Study Calls for Businesses to Encourage Consumers to Speak Out More to Help Boost the Bottom Line

Tue Jan 28, 2014 

WEYBRIDGE, 28 January 2014 — Consumers are shying away from providing feedback to companies, just as firms are ramping up their efforts to capture the voice of their customers, a new research study carried out by Verint® Systems Inc. (NASDAQ: VRNT) and the Customer Contact Association (CCA) has found. A recent survey* conducted among nearly 150 senior customer service and contact centre managers at blue chip UK organisations reveals that 95% are investing more in their customers by listening to what they have to say and analysing customer insights.

 

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Press Release

Study Calls for Businesses to Encourage Consumers to Speak Out More to Help Boost the Bottom Line

Tue Jan 28, 2014

Press Release

  • 95% of UK service providers are investing in listening to the voice of their customers; however they aren’t listening often enough
  • Just 24% of UK consumers think companies take notice of their views; 52% have never made a complaint in the last 3 years
  • 45% of businesses admit they rarely, if ever, analyse social media posts, but 1 in 3 consumers believe social media makes brands more accountable than ever before

 

WEYBRIDGE, 28 January 2014 — Consumers are shying away from providing feedback to companies, just as firms are ramping up their efforts to capture the voice of their customers, a new research study carried out by Verint® Systems Inc. (NASDAQ: VRNT) and the Customer Contact Association (CCA) has found. A recent survey* conducted among nearly 150 senior customer service and contact centre managers at blue chip UK organisations reveals that 95% are investing more in their customers by listening to what they have to say and analysing customer insights.

However, a parallel survey of approximately 1,000 GB consumers carried out by Ipsos MORI** for Verint reveals a neglected nation with only a quarter (24%) believing companies take notice of their views; while just 29% agree they feel valued as a customer. What’s more, it notes that Brits are reluctant to express these feelings. Over half of the consumers surveyed have never made a complaint, and only 16% believe posting about customer service issues on social media helps resolve issues. Despite these perspectives, one in three (33%) believe in the power of social media and how it can make brands more accountable.

Further, the study affirmed that not all consumers fit into one basket. More specifically, it surfaced significant and very different groups of customers. One of which, if properly engaged and incentivised, could act as powerful drivers of loyalty and growth – Brand Champions. In fact, collectively over 33% of customers would, if properly engaged and rewarded, stay loyal for several years and actively endorse the brand to friends, family and social media followers. Today, only 13% of customers in the UK GB could be considered Brand Champions***.

Another group of customers can be defined as “Silent Likers;” 30% of customers fit into this category. Like Brand Champions, they are happy with the service they receive, are brand loyal and don’t complain. However, they are not brand advocates and don’t share their experiences with others.

The study also reveals 24% of consumers are more flippant “Churners,” gravitating towards cheaper deals and typically switching providers within two years. These individuals tend to be least loyal but are among the most likely to receive loyalty-based incentives. The last category of customer is the “Fence Sitter.” Some 16% of customers appear to be ambivalent towards the service they receive. They don’t engage with brands, nor share their experiences.

 

“Brand Champions” (13%)

  • Happy (or very happy) with service
  • 85% stay with same providers 3 years or more
  • Twice as likely to talk to friends and family about good service than bad
  • 53% feel valued as a customer
  • Believe more strongly in the power of social media – 51% believe social media can hold brands to account
  • Remember the “thank yous” from brands – and are more likely than other groups to talk or post about them

 

“Fence Sitters” (16%)

  • Ambivalent about service
  • 47% have stayed with same providers for 3 years or more (and 23% can’t remember the last time they changed)
  • After “Silent Likers,” they are second least likely to receive thank you offers
  • Typically don’t complain or share experiences, good or bad
  • When they do, they are more likely to discuss good experiences over bad

 

“Silent Likers” (30%)

  • Happy with service
  • 68% stay with same providers 3 years or more
  • Rarely, if ever complain – 76% have never complained
  • Least likely to have received vouchers or “thank you” offers
  • Have not talked to friends and family about their experiences

 

“Churners” (24%)

  • 24% have been with current providers for less than a year
  • 20% claim to have received “thank you” rewards
  • About as likely to post about bad experiences over good ones
  • Lowest loyalty of any group - 44% have been with same provider less than 2 years

 

UK businesses gradually develop ears

Despite the growing investments in “voice of the customer” (VoC) initiatives, professionals admit their companies have some way to go. Though over 80% agree senior management is taking a closer interest in the VoC, they tend not to practice what they preach. Less than a fifth (17%) of respondents said they actually analyse customer feedback every day.

The study further found companies failing to move with the times, for instance, neglecting to track customer discussions on social media in favour of older methods. Almost half (45%) admit they rarely if ever, analyse social media posts, while over 80% use more dated feedback surveys and complaints analysis. Almost three quarters of service leaders (71%) agree they could do more to thank their best customers, and almost half think that offering more one-off benefits could lead to a 10% increase in how much customers spend.

Nancy Dalton, Global Head of Barclaycard Learning and Quality Assurance, comments, “Our core strategy is anchored in service and creating an emotional connection with our customers. This requires that we listen to and act on all of their channels of feedback. Several aspects of these research findings really resonate as fundamentally it shows that any changes and actions taken need to be communicated back to the customer to ensure they know their voice is heard and see the value in their relationship with us. In addition, we want to not only engage with and reward our Brand Champions, but also expand this group further by understanding and responding to the feedback provided by Silent Likers and Fence-Sitters as well. This can really impact how our customers are talking about us.”

Claire Richardson, VP at Verint notes, “For those who believe social media could be the great leveller between businesses and consumers, our study’s findings may come as a surprise. The research has shown evidence of large swathes of valuable customers being overlooked and a high degree of cynicism about companies’ attitudes towards them.”

She adds, “It’s pleasing though to see companies gradually recognising that talking to customers, and expressing gratitude for their loyalty, can deliver real dividends. Organisations need to unify their initiatives within a single Voice of the Customer Analytics strategy, which encompasses contact centre, social, in-store and surveys. The customer service function can be more effective than any other part of the business in gathering customer insights and making them actionable. And, they should be doing all they can to inform customers that they are acting on what they say.”

 

ENDS

 

About the Research

Business Research:

*The research was conducted via Verint and the Contact Centre Association among 143 contact centre professionals in the UK during September and October 2013. Positions of respondents varied from director to management, middle management, team leaders and team members. The research explores focus on businesses’ attention on customer retention versus acquisition, attitudes towards customer loyalty, customer communication channels and customer insight strategies.

Consumer Research:

** The research was conducted on i:omnibus, Ipsos MORI’s online panel omnibus, in two waves. In wave 1, a nationally representative sample of 1,000 British adults aged 16-75 was interviewed over 3-5 September. In wave 2, a nationally representative sample of 1,002 British adults aged 16-75 was interviewed over 26-28 November 2013. Questions focusing on the industries specified below received c500 responses per wave (i.e. c1,000 in total). Questions without industry focus received 1,000 responses in the first wave only. The survey data has been weighted by age, gender and region to ensure it represents a national mix of respondents.

The research explores attitudes towards services provided by organisations in nine sectors (mobile phone, home telephone/landline, home broadband; banks; credit card providers; insurance; high street retailers; supermarkets and utilities).

***Additional analysis and segmentation of the research was carried out by Brands2Life to formulate the consumer groups during December 2013.

About Verint Enterprise Intelligence Solutions

Verint® Enterprise Intelligence Solutions™ help organisations of all sizes capture and analyse customer interactions, sentiments and trends across multiple channels, improve performance and optimise the customer experience. The solution portfolio includes the Impact 360® Workforce Optimisation™ suite and Voice of the Customer software, which serve as strategic enterprise assets for increasing customer satisfaction and loyalty, enhancing products and services, reducing operating costs and driving revenue.

About Verint Systems

Verint® (NASDAQ: VRNT) is a global leader in Actionable Intelligence® solutions. Its portfolio of Enterprise Intelligence Solutions™ and Security Intelligence Solutions™ helps organisations Make Big Data Actionable™ through the ability to capture, analyse and act on large volumes of rich, complex and often underused information sources—such as voice, video and unstructured text. With Verint solutions and value-added services, organisations of all sizes can make more timely and effective decisions. Today, more than 10,000 organisations in over 150 countries, including over 80 percent of the Fortune 100, count on Verint solutions to improve enterprise performance and make the world a safer place. Headquartered in NY, Verint has offices worldwide and an extensive global partner network. Learn more 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 and uncertainties, 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, 2013 and our Quarterly Report on Form 10-Q for the quarter ended October 31, 2013 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, the Company assumes no obligation to update or revise them or to provide reasons why actual results may differ.

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