Consumers Demand More Human Interaction

Companies Losing Customers as Consumers Demand More Human Interaction, Accenture Study Finds

Too much reliance on digital technologies has given rise to ‘human-less’ customer services

Auckland; March 30, 2016 – Eighty-one per cent of Australian consumers prefer dealing with human beings over digital channels to solve customer services issues, according to new research from Accenture (NYSE: ACN). The report also found that over half (55 per cent) of consumers have switched provider in the past year due to poor customer service, with retailers, banks and internet service providers being the worst offenders. In Australia, the estimated cost of customers switching due to poor service is AU$122 billion.

The Accenture report, ‘Digital Disconnect in Customer Engagement’, is based on the company’s eleventh annual Global Consumer Pulse Research, which gauges the experiences and attitudes of 24,489 consumers around the world about marketing, sales and customer services. 1,351 Australian consumers were included in the sample.

“Companies have lost sight of the importance of human interaction and often make it too difficult for consumers to get the right level of help and service that they need,” said Luca Martini, Managing Director for Accenture Strategy in Australia and New Zealand. “The beauty of the possibilities offered by today's technology is that the human touch can be blended into the digital experience (and vice versa) allowing companies to deliver amazing customer service across all channels, whilst removing the usual pain points.”

The importance of human connection in customer services

Human interaction remains a vital component of customer satisfaction, even in the ‘digital age’. The majority (81 per cent) of Australian consumers prefer dealing with human beings over digital channels to solve customer services issues and get advice. Nearly half (48 per cent) of consumers say they are even willing to pay a higher price for goods and services if it ensures a better level of service.

Physical or in-store experiences are also highly valued amongst consumers. Specifically, 64 per cent agree that in-store service is the best channel for getting a tailored experience, and over half (52 per cent) say they are more willing to be sold new or upgraded products when receiving a face-to-face service compared to online. Nearly half (45 per cent) say they would rather go to a store first than use digital channels to get advice on the best products and services.

“Australian companies have reached a tipping point in their customer’s digital intensity and need to rebalance their digital and traditional customer service investments if they want to improve loyalty, differentiate themselves and drive growth,” said Martini.

Improving customer experience

The Accenture report reveals that there is huge room for improvement in the delivery of today’s customer services. The majority (81 per cent) of consumers admit that it is extremely frustrating dealing with a company that does not make it easy to do business with them. Another 69 per cent expect customer service to be easier and more convenient, and 66 per cent want it to be faster. Complaining on social media about poor customer experience is the norm for 42 per cent of consumers who admit taking to social channels in order to vent.

Once a provider loses a customer, 61 per cent of consumers will not go back. But there are measures companies can take to hold on to them. Eighty-three per cent) of ‘switchers’ feel the company could have done something to retain them. Over three quarters (76 per cent) report that if companies could provide customers with better live or in-person customer service, it would have impacted their decision to switch provider.

How leaders of customer services succeed

Organisations that want to rebalance their digital and traditional customer service channels should look to:

1. Put the human and physical elements back into customer services: Rethink your investment strategy. The focus should be on delivering satisfying customer experiences – not methods of interaction. Ensure your channel management approach delivers integrated experiences.

2. Make it easy for customers to switch channels to get the experiences they want: Build customer service channels that enable consumers to fluidly move from digital to human interaction to get the outcomes they desire.

3. Root out toxicity: Define and address the most toxic customer experiences across all channels. These experiences can directly impact profitability. Identify the experiences that have the greatest potential downside and leverage those insights to guide an investment strategy.

4. Guarantee personal data security: 88 per cent of consumers say it is extremely important that companies protect the privacy of their personal information. By not selling or sharing customer data with other companies, and guaranteeing that safeguards are in place to protect it, consumers will be more willing to hand over personal information which can be leveraged to deliver better experiences.

Please visit www.accenture.com/GlobalConsumerPulseResearch to read the full report. Join the conversation at @AccentureStrat #GCPR.

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