New Study Finds Communications Providers Giving Away Services

"Providers must obtain the customer insight needed to make more informed decisions about whether to give away the service and, if so, to whom, or if they should charge for these services.  In today's challenging economic climate, businesses need to find innovative ways to grow and improve their revenues."

At the same time, as many as 30 percent of business customers responding to the survey indicated that they are considering switching to another provider due to dissatisfaction with the quality of customer service they receive. Each of these customers currently spends an average of $15 million on products and customer service per year – a significant chunk of business to lose and try to replace.

This research also found that 70 percent of business customers believe that it is possible for a provider to create an experience that will secure their loyalty. Likewise, 70 percent of providers said that improving the overall customer experience and customer satisfaction ranks as their main business priority for 2009.

The biggest challenges identified in delivering superior service were a lack of supporting technology for 30 percent of respondents; a dearth of trained resources for 29 percent; and non-existent definitions of support processes for 22 percent. Both providers and customers believe the quality and competence of service agents and first call resolution rank as the two most important factors in delivering a superior, differentiated service experience.

When respondents were asked to explain what they considered to be the main characteristics of a superior, differentiated customer experience, the top three responses were knowledgeable staff and accessible support for 32 percent; efficient and timely problem resolution for 26 percent; and proactive, personalized solutions for 21 percent.

"Customers look to the quality of customer service they receive, or other higher-end offerings, as a way to differentiate between providers," added Sprague. "They're saying: 'Be there when I need you and make sure you take care of my problem quickly, without sending me to another person. Make it a superior experience for me.

"These providers need to determine what customers really want in a service and support experience, which means becoming truly customer-centric - aligning service capabilities to anticipate and address customer needs.  By doing so they can more effectively differentiate themselves from competitors, strengthen customer loyalty, and take major strides toward becoming high-performance businesses."

Accenture also found in its research that providers estimate that they will earn as much as one-third of their future customer service and support revenue by 2013 from service and support offerings that do not currently exist. In addition, the company discovered that customers in North America are more loyal and less likely to switch than their counterparts in Europe or Asia.

While this research supports commonly known theories in customer service, it also uncovers other areas of consideration for both customers and companies. Without clearly defined expectations and direction, companies will continue to lose money and customers will continue to be dissatisfied. In an economy such as this, companies cannot afford to be so lax.