Vocalcom Satmetrix :

12 millions of French customers switched to concurrence after a bad “customer experience”

12 millions of French customers changed of provider in essentials sectors in the last six months after

a bad “customer experience”. This is the outcome of the last benchmarking study Net Promoter done

by the company Satmetrix, specialized in software and services oriented customer experience. The

three common causes of customer infidelity are prices and unjustified additional costs, then bad

customer service. Brands troubles are not limited to this infidelity: nearly 40% of the persons leaving

their provider talked it down to their entourage; it is four times higher than the average.

Electronics on the lead, energy providers at bay.

Conducted on nearly 9000 customers and focusing on nine sectors, the Satmetrix study reveals that

some are getting through in a better way than others. The biggest winners are clearly computer

brands and common electronics goods as televisions and mobiles phones which are benefitting of a

quite strong fidelity rate from their customers and a positive word of mouth. On the other hand, the

energy providing sector show a Net Promoter score 62 points lower than the leader sector,

correlating the low fidelity rate of customers for associated brands and companies.

Customers won’t get mistreated anymore

Loyalty to brands is less and less written into stone, moreover if customers are mistreated.

Robert Salvoni, Satmetrix Internaitonal Managing Director, can’t figure out how so many companies

have not yet understood this customer requirement: “I’m puzzled that brands are still not listening to

what customers are saying. Large brands tend to raise their prices and to increase the number of

paid services, this will help customer volatility growth. Our study shows also that companies don’t

help teams to understand their behavior‘s implication on customers. Given the current economic

situation and the stress applied on every level of sales and profit margins, it is unacceptable to lose

customers for reasons that are totally under company’s control.”

Benefits from positive recommendation also under evaluated

It seems that companies aren’t able to understand fully the benefits of an esteemed customer

service. During the study’s time period, promoting customers (having recommended their band)

were nearly five times more (46%) than scorning customers (9%). When a brand or a provider creates

a promoting customer, it generates a higher fidelity rate and a positive word of mouth, avoiding by

the same the negative effect of the lost clients. Robert Salvoni concludes that “study shows the

doubled positive effect generated by having satisfied customers for a brand. The company will keep

these customers for longer but it will also create a higher recommendation rate. All indicators prove

that overcoming expectations of customer experience is extremely lucrative”. I other words: listen to

our customers, trust them. If you love your clients, they will repay you.

Main reasons for leaving a brand according to the Net promoter 2011 study.

2011 2010

Bad quality of produce or service 22% 25%

Unjustified price 17% 17%

Brand representatives’ inappropriate behavior 13% 14%

Inability to reach for someone to solve an encountered problem 12% 13%

Process inequities between new customers and usual customers 10% 9%

Foreign based call centers 9% 9%

Bad change or refund policy 6% 7%

Bad environmental policy 2% 2%