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Poor customer service costing firms
Firms lost millions of customers, costing them billions of pounds, in the past few years - often because of poor customer service, according to new research.
Three out of four switched at least one product or service in the last two years, a survey of more than 2,000 people showed.
Professor Merlin Stone, of Oxford Brookes University, who conducted the study, estimated organisations had lost up to 20 million good customers, which cost them around £3.39 billion.
More than one in five people blamed poor customer service for switching to other firms in areas including finance, telecoms and utilities.
Lifestyle firm WhiteConcierge, which commissioned the study, said the findings suggested that more than 30 consumers were signing up with different companies every minute of the day.
The worst affected sectors for losing customers over the past two years were motor insurance, electricity and home insurance, according to the report.
Prof Stone said: "Organisations have to work harder than ever to keep their best customers. Consumers have become increasingly demanding and discerning, and with the rise of price comparison websites for example, it is now much easier to compare and switch products."
Jonathan Breeze, managing director of WhiteConcierge, said:
"Price is undoubtedly one important factor for causing
people to change providers but many companies cannot compete
on this at the moment.
"As our research findings show, issues surrounding customer
service experiences are also key and can be addressed more
readily."
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19th January 2010 |
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