Contact Center Solutions Featured Article

Australian Companies Suffering Poor Customer Service Delivery

April 17, 2008

Call centers and contact centers are first and foremost the customer service touch point between the customer and the company. If the center fails to deliver the proper customer service to the customer or fails to properly resolve an issue or answer a question, then the contact between the customer and the company was pointless and could have also contributed to lower satisfaction for the customer.
 
Poor customer service appears to be almost an epidemic for Australian businesses. A new study has shown that almost half of consumers are able to have their problems solved by their service providers. The only hope for these service providers in maintaining their base is that maybe these customers are not jumping ship, as the service is likely to be the same when dealing with the competitor.
 
Commissioned by IT vendor BMC Software (News - Alert), the survey found that 42 percent of respondents said their suppliers could not adequately solve their problems, while another 20 percent had issues with inexperienced staff manning their calls. The survey reported that six out of 10 consumers had changed supplier in the past year.
 
The problem that these providers must deal with, aside from initiating strong changes in their customer service deliverables, is that more customers are changing providers than just those that are unhappy with their service. If only 42 percent are receiving poor service, yet 60 percent are making changes, what is really driving this churn?

Customer churn, according to this survey, was estimated to cost local businesses about $1.5 billion a year, with telecommunications companies as the biggest losers. The study also indicated that the telephone, mobile phone and broadband companies suffered the most from customer turnover, ahead of electricity providers, banks and insurance firms.
 
Pricing was the main factor for leaving a company as cited by 79 percent of respondents. A lack of incentives to stay loyal was in second place with 48 percent of respondents indicating this problem as the reason for making a change. The implementation of both exit interviews for customers that captures their reason for leaving, as well as options for incentives to stay would be strategic moves for companies in fighting this churn.
 
This study indicates that there is still much work to be done within the customer service divisions of local Australian companies. Aside from implementing customer-facing technologies and applications to drive service, these companies would also benefit significantly from investigating further what is driving customer churn and respond accordingly.

Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.

Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is, Best Practices in Agent Retention brought to you by Enkata
.

Article comments powered by Disqus

Related Contact Center Solutions Articles

Carrier iQ Showcases Capabilities at 2015 Mobile World Congress

Carrier iQ, provider of device-sourced mobile intelligence, announced three solutions for iQ Care and an executive customer experience management (CEM) solution to measure the actual mobile user experience at the 2015 Mobile World Congress in Barcelona. [ Read More ]
03/03/2015

Ytel Picks VoiceBase for Cloud Contact Center Speech Analytics Enhancement

It is no secret that contact centers are now intensely interested in Big Data and sophisticated analytics to improve operational efficiency, effectiveness and the customer experience. Let's face it, knowing who is saying what, when, where, why and with what result is extremely valuable. In fact, it is this need to know that has driven large volume contact centers to increasingly look to sophisticated speech analytics to give them the business intelligence they desire not just about customer inte… [ Read More ]
03/03/2015

Carrier iQ Showcases New Capabilities at 2015 Mobile World Congress

Carrier iQ adds three enhancements for obtaining actionable business intelligence from mobile devices. [ Read More ]
03/03/2015

Plantronics' DA80 Makes Customer Service Centers Smarter

The moniker smart is now attached to phones, TVs, homes and even cars. As the size of computer processors get even smaller, more products will be embedded with the technology to make them smarter to deliver improved efficiency and productivity for many different industries. For contact centers, the goal is to always improve customer service, and then new Plantronics next-generation USB audio processor not only increases the effectiveness of service center operations, but it makes customer intera… [ Read More ]
02/25/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!