Digital consumers may be spending more and more money online, but they aren't necessarily spending with loyalty in mind. That's the word from new Verint Systems data which finds that those in the digital space are more likely to switch providers than people who shop or do business is 'real world' settings.
The Verint data shows a 7% drop in retention over the past year. One of the more positive findings indicates that consumers who have positive interactions with customer service, either in store or through digital, are more likely to renew or stay with that provider.
"What's clear is that a more personal touch in customer service helps drive retention and loyalty. This is a wake-up call for many organizations looking to introduce more digital channels with the aim of reducing costs and improving customer convenience," notes Rachel Lane, director of customer analytics, EMEA at Verint. "As our research shows, consumers feel more positive about a brand when they interact directly with a person, so organizations need to consider how to make the digital experience more personal to avoid increased customer churn."
Other interesting findings from the report include:
• Banks lead in customer retention with 73% of those surveyed saying they've been with their bank for more than 3 years
• 64% of those surveyed who work with a Japanese-based provider have been with that provider for more than 3 years
• 38% of those who have had 'positive customer service' interactions have remained with that provider
• 27% who have had 'positive customer service' are more likely to sign up with that brand's loyalty program