Lifetime customer loyalty is disappearing over 40%
of UK customers changed at least one of their suppliers over the last
year, according to a new research report from KPMG Consulting.
Consumers are also setting a tough task for retailers and other suppliers
- they expect suppliers to understand their individual needs, but are
wary of giving out personal information. Web buyers who have difficulties
completing a purchase are unlikely to try again.
The report, "Customer Management Who Manages Whom?",
shows that a quarter of respondents have changed their gas or electricity
provider in the last year. 16% and 14% of respondents respectively have
changed their supermarket and phone company. At the other end of the scale
are banks only six per cent of respondents were found to have changed
their current account or credit card supplier in the last year.
Louise Fletcher, Partner in charge of Customer Management at KPMG Consulting,
commented: "This research shows that customer loyalty cannot be taken
for granted and that companies need to take urgent action, as customers
are very willing to switch to alternative suppliers. While customer loyalty
is vital for commercial success, companies must take action to promote
it, for example by devising strategies to give customers a compelling
reason to retain the same supplier."
The report also found that while customers were unwilling to provide companies
with information about themselves, they still expected organisations to
have a detailed understanding of them as individuals. Half of respondents
fully expected companies to have details of why they have contacted them
in the past and their customer history.
51% agreed strongly with the viewpoint "I find it annoying when I
am asked for the same information every time I contact a company".
Yet, 35% were unhappy for companies to collect personal details on them,
even if this helped the company in question provide a better service.
Louise Fletcher believes that customers wish to be in control
of the relationship with suppliers: "Customers seem unwilling to
provide personal information and to accept unsolicited contact from companies.
This is undoubtedly because many companies have been clumsy in the past
not only has their use of customer data been unsophisticated, but
their methods of contacting potential customers have been intrusive".
750 people took part in the research and answered a range of questions
about their dealings with companies in the utilities (gas and electricity),
telecoms (including mobiles), banking and grocery retail sectors.
Anna Lagerkvist
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