Shoppers today have access to more product and brand options due to their day-to-day use of digital tools and touch points. As a result, these savvy consumers are more prone to switching businesses if they do not receive the best possible experience, according to Accenture research.
In fact, 56% of consumers reported that the number of brands they consider has increased significantly over the past 10 years. And up to 46% of consumers said they are more likely to switch providers versus 10 years ago.
The 'Switching Economy' encompasses the potential revenue up for grabs due to consumer spending patterns and switching rates. This economy has reached $1.6 trillion in the U.S., a 29% increase since 2010.
To determine the global impact of the 'Switching Economy', Accenture surveyed 23,665 consumers worldwide regarding their marketing, sales and service experiences. All results were shared in the Global Consumer Pulse Research report.
A key takeaway from the report is that consumers are seeking more digital experiences to drive their decision-making process. As many as 78% of respondents use at least one online channel while looking for a new service providers, while 24% said they want more digital interactions with organizations.
“Many established companies are reacting too slowly to the needs of today’s ‘non-stop customers’, and consequently, they are seeing both a customer exodus and a decrease in their revenue potential,” said Robert Wollan, Senior Managing Director at Accenture Strategy. “While many companies have been chasing the opportunity digital brings, they have not addressed the root causes of the problems that are exposed when they don’t execute well. Companies have been focused only on ‘doing the same things better’ when these issues really require them to ‘do things differently’.”
Loyalty Remains A Moving Target
As a result of consumers having access to more options and buying channels, they are feeling, overall, less loyal to businesses. Only 28% of U.S. consumers feel very loyal toward providers and only 31% would be willing to recommend companies to friends, family members and peers.
Many consumers also do not believe they are receiving exemplary service, which is hindering their willingness to be loyal to a brand or retailer. In fact, the top three frustrations among U.S. consumers include:
- The inability to solve an issue during the first interaction (86%);
- Lengthy hold times (85%); and
- Interacting with service representatives who cannot answer questions (84%).
Despite consumers being more apt to switching brands and providers, there is an opportunity for retailers to win shoppers back. More than one quarter (27%) of consumers said they would consider returning to a previous provider, especially if the price is right (56%) and if they have a superior product or service (47%).
Click here to download the complete Accenture report.
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