High attrition among digital customers

According to a global study across nine different industries run by Opinium on behalf of Verint, consumers who prefer to do business digitally are more likely to swap providers, compared with those that engage with businesses through human interactions, such as by phone, a contact center or in-store.

Across all sectors, nearly three fifths (57%) of consumers have been with their service providers for more than three years. Banks lead in terms of customer retention (rising to 73%) with mobile phone providers second (63%).

Across all countries surveyed, Japanese companies had the highest retention rates, where 64% of consumers have been with their providers for more than three years. French companies also fared well (60%), as did the US (55%).

However, Brazilian, Indian, Mexican and British consumers are more prone to switching. Only 35% of Brazilians reported remaining with their providers for more than three years, followed by Indians (46%), Britons (50%) and Mexicans (50%).

The study also found that consumers who prefer to engage with organizations digitally are more prone to switching providers, than those who engage through human interactions. Just under half (49%) of those who prefer to engage digitally have been with providers for more than three years, however, those who prefer to pick up the phone and prefer to go in-store have higher rates of retention (58% and 57% respectively).

The research also found that consumers who have a good customer service experience on the phone or in-store, are more likely to behave positively toward a brand than if the experience was online. Additionally, consumers who have good experiences in-store or on the phone are:

  • 38% more likely to renew their product or service, even if it isn’t the least expensive option
  • 27% more likely to sign up to an organization’s loyalty program
  • 19% more likely to leave a positive review

Read more about this research here.