By: Joe Gillen
The results of customer satisfaction studies are typically consistent across all industries and locations. The findings of nearly all studies provide several gems of wisdom, the most common of which is that poor customer service generally yields dissatisfied customers�and results in lost consumer retention and revenue opportunities. This truth was reaffirmed by a new global study, which reveals that many brands, businesses and industries alike are at risk of losing customers and profits as a result of poor customer service habits.�
The Oracle Corporation recently released a study, entitled "Global Insights on Succeeding in the Customer Experience Era," which found that 97 percent of executives across all industries�agree that delivering a great customer experience is critical to business advantage and results. These participants also project that the average potential revenue loss for not offering a positive, consistent and brand-relevant customer experience is 20 percent of annual revenue. Given these estimations, 93 percent of executives say that improving the customer experience is one of their organization's top three priorities in the next two years, and 91�percent�wish to be considered a customer experience leader in their industry.
Despite these aspirations, the results reveal that too many businesses and financial companies fail to understand the real impact of customer service on consumer behavior. For example, although 49 percent of respondents said they think customers will switch to a competitor as a result of bad customer service, 89 percent of customers have admitted to switching to a new provider due to poor service and experiences.
Closing the chasm
As consumers have more banking options, it's important that financial institutions take the results of this study to heart and try to merge their perceptions of customer service with the reality of the consumer experience they are providing. In addition to improved training and internal auditing, mystery shopping is an effective and unbiased strategy banks and credit unions can adopt to truly measure their customer service. In addition, making small habits - such as offering complimentary coffee and tea to customers and greeting clients by name - part of a bank's overall strategy can have a profoundly positive effect on consumer experiences.�
"This report demonstrates that organizations around the globe and across many industries are beginning to understand the real business impact of not offering great customer experiences, but are facing execution challenges," said�David Vap, group vice president of Oracle. "By empowering customers and employees, breaking down organizational silos, and implementing flexible processes and technology tools, organizations can deliver personalized, seamless customer service through the entire experience lifecycle."