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76% of SE Asian Customers Switch Brands After 1 Bad Customer Experience

Brand abandonment and customer service are closely linked. Organisations that fail to deliver positive customer experiences face the threat of losing customers to their competitors. While the impact of CX on customer loyalty is not lost on organisations, the extent of abandonment may come as a surprise. Click here to get the whole study here.

Study on customer experience among South East Asian customers

In December 2015, Fifth Quadrant conducted an online survey of 2,538 consumers across India, Singapore, Malaysia and the Philippines. The objective was to understand the role of customer service in encouraging brand loyalty, and customer expectations around response and multi-channel service availability. The study found that greater than 7 out of 10 of customers would abandon a business following a poor customer service experience. In comparing India with SE Asia, 78% of Indian consumers and 72% of SE Asian consumers would advise family and friends to avoid businesses that have given them poor customer service. Negative word-of-mouth can damage brand reputation, and force organizations to up their CX game.

Thanks to the Internet, and particularly social media, consumers are better informed about the products and service capabilities of organisations, both locally and globally. The result is that consumers have more power in choosing which companies they wish to do business with. It is critical for organisations to fully understand the market and customer behaviour, in order to determine which factors drive choice and loyalty for their market and business. 

Customers believe that top-notch customer service is a pre-requisite for continuing with an organisation

37% of customers indicated that satisfaction was greatly dependent on the organisation’s ability to connect them to a representative who can solve their problems. A majority of respondents who contacted businesses via phone calls or live chat expected a response within ten minutes. 

Customers appreciate multi-channel availability 

The consumer journey typically begins with either the online or mobile channel first before they progress to other channels. The reasons for first channel choice is the speed of response and convenience to access at home or work, compared to traditional channels.

On average, consumers use three channels to resolve their query. Ideally consumers should find the answer to their question through their channel of choice without the need to switch to alternative channels.

Respondents were in agreement that multi-channel engagement enhances experience and satisfaction. Almost half stated that they went online to get information before getting in touch with customer service. The study also found that the number of consumers using online and mobile channels for customer support has increased from the previous year, at 31% and 23% respectively. 

Traditional channels are beating their digital counterparts on interactions per query

On average, traditional channels require just 2.8 interactions per query. But digital interactions need 8.3 interactions per query resolution. To overcome this gap, organisations need to invest in the right tools that speed up resolution and close service tickets with greater efficiency. 

Technology is a great enabler in helping organisations understand cross-channel behaviour and gain deeper insights into how personas and previous experiences influence digital interactions. This knowledge can be applied to improve resolution rates and customer satisfaction.

Original research led and conducted by Dr. Steve Nuttall, Director of CX Research at Fifth Quadrant

Click here to get the whole study here.

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Brad Arsenault

Written by Brad Arsenault

Brad is the Head of Marketing at Fifth Quadrant. For over 16 years he's worked across digital marketing and content production. He actively publishes content on LinkedIn and Medium.

Topics: retail insights brand loyalty CX CX Articles & Insights

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