Verint reveals reduced loyalty among customers
Verint Systems, a global leader in Actionable Intelligence Solutions, recently revealed findings from a study into more than 34,000 customers across 18 countries. According to the research, customer retention and global loyalty are declining at a rapid pace. Only 44% of consumers in total say that they have stayed with their service providers for at least 3 years. This is a reduction of 39% since 2015.
According to Verint, as the lives of today’s consumers become more connected, and we continue to rely more heavily on the latest technology, our expectations are changing. We’re beginning to expect more convenience in the ways that we interact, both in our personal lives and at work.
Technology like AI, chatbots, and social media have created an always-on environment, which makes it harder than ever for businesses to maintain the loyalty of their customers.
3 years on from Verint’s “Digital Tipping Point” research, which explored the relationship between human beings and digital channels for customer service, there’s been a massive change in the way that customers and companies interact. Over the last year, demand for interactions via mobile apps has increased by 57%, and demand for video chat has risen by 50%.
However, Verint has also found that although digital channels are becoming increasingly popular, there’s still value in human interaction. For instance, people between the age of 18 and 34 are less likely to use self-service tools, with only 36% saying they would, compared to the average of 46%.
Additionally, 29% of 18 to 34 year-olds also said that they prefer to communicate with people in-store first when they need assistance. This goes against the common belief that younger customers will always choose technology first.
One of the most significant findings from Verint’s research was that convenience is more important than anything else when it comes to finding the right organisation or service provider to work with. Around 53% of 18 to 35 year old’s say that ease of engagement is more crucial than cost. Additionally, the majority of the respondents surveyed said that convenience in their interactions with brands was crucial to their ongoing loyalty.
Verint’s research discovered that the demand for always-on service is pushing companies to churn out automated solutions like artificial intelligence and chatbots. However, many organisations may be relying too heavily on these solutions, particularly when only 45% of customers say that digital channels offer the best experience.
Additionally, the study found that the human factor still remains an essential component of engagement. Today’s customers don’t just want bots – they want to be able to interact with people too. The preference for most customers is usually to manage their inquiry by themselves (34%) but speaking to someone on the phone (30%) or going in store (29%) are also popular choices.
Verint’s research suggests that there are plenty of opportunities available for companies that can offer their customers an easy method of interaction. However, it’s crucial to find the right balance between being always on and providing the human touch that customers crave…