CFO  News Hubb
Advertisement
  • Home
  • CFO News
  • Financial Advisor
  • Financial Planning
  • Markets News
  • Economics
  • Contact
No Result
View All Result
  • Home
  • CFO News
  • Financial Advisor
  • Financial Planning
  • Markets News
  • Economics
  • Contact
No Result
View All Result
CFO  News Hubb
No Result
View All Result
Home CFO News

As Customer Problems Hit a Record High, More People Seek ‘Revenge’

by admin
March 7, 2023
in CFO News



Americans are encountering more problems with companies’ products and services than ever before, and a higher proportion of them are actively seeking “revenge” for their troubles, a new study has found.

Some 74% of the 1,000 consumers surveyed said they had experienced a product or service problem in the past year. That is up from 66% in 2020, when the study last was conducted, and 56% in 2017. Only 32% told researchers they had experienced a problem in 1976, when a similar version of the study was first conducted.

The percentage of consumers who have taken action to settle a score against a company through measures such as pestering or public shaming in person or online, has tripled to 9% from 3% in 2020, according to the study. That reversed a downward trend with regards to revenge-seeking behavior: The average percentage of customers seeking revenge between 2003 and 2017 was 17%. 

“It’s the idea of, if you as a company don’t really seem to care, well then I’m going to take to the streets,” said Scott Broetzmann, president and chief executive of Customer Care Measurement & Consulting, which conducts the so-called National Customer Rage Survey with the W.P. Carey School of Business at Arizona State University. The research, which builds on a study first conducted by the White House in 1976, albeit under a different name, found that 32% of complainants posted about their most serious problem on social media—more than double the proportion who did so in the 2020 study.

“Most people now are using a computer, they’re using some form of social media at this point, there’s a democratization of complaining,” Mr. Broetzmann said.

But the results echo findings from consulting firm

Forrester

last year suggesting that the quality of customer experience offered by consumer-facing brands and government agencies declined in the year through April 2022. Forrester said its research studies 96,211 U.S. consumers’ perceptions of 221 organizations. 


Newsletter Sign-up

WSJ | CMO Today

CMO Today delivers the most important news of the day for media and marketing professionals.


And the American Customer Satisfaction Index, which analyzes customer satisfaction with more than 400 companies in 47 industries on a scale of 0 to 100, fell to 73.1 in 2022 from 77 in 2018, the largest decline in the index’s 28-year history. Customer satisfaction is improving in some industries, including consumer shipping, athletic shoes, soft drinks, hospitals, and online and specialty retailing, but is declining across fast food, hotels and gas stations, according to the index’s latest report. 

The rising dissatisfaction is accompanied by more frequent and aggressive complaints, according to the National Customer Rage study.

The latest wave of research found 79% of customers complained about their most serious problem to the company at fault, an increase from 72% in 2020. And 43% said they raised their voice to a customer service representative to show displeasure about their most serious problem, up from 35% in 2017, the most recent previous time the question was asked on the survey.

Consumers said some kinds of companies handled complaints better than others, with sectors including food delivery, package delivery and banking outperforming categories such as pay television, air travel and automotive.

Customer dissatisfaction hurts companies in more ways than one, Mr. Broetzmann said.

It was a turbulent year for carriers in 2022. But Southwest’s holiday meltdown stands out. So how much did the cancellations, lost bags and complaints affect the company’s place in WSJ’s annual airline rankings? Illustration: Jon Krause

“It’s costing companies a lot of money in future business, but there’s also the cost of servicing really angry customers,” Mr. Broetzmann said. “If you think about the average number of contacts that really angry customers are making, each time they contact a business, that costs the business money.”

Some companies have begun offering expedited customer care as a perk for their paid members, biggest spenders and most loyal fans, borrowing a strategy of airlines and credit card companies.

At the same time, more companies have been turning to automation to cut costs and cover staffing shortages in their standard customer service. Firms push customers towards phone lines and web chats that are handled by artificial intelligence or other technologies that can respond to basic requests, leaving human staff to handle the more complicated service inquiries. 

SHARE YOUR THOUGHTS

Do you think you are experiencing more problems with products and services than ever before? Join the conversation below.

But that strategy is prone to angering customers further, the rage research found. Respondents named their top customer care frustrations as “being forced to listen to long messages before you’re permitted to speak to a representative” and “figuring out how or where to contact the company,” which covers the experience of feeling like a company is hiding its phone number. 

At the same time, 25% of respondents said they expected an explanation of why their problem occurred, 24% said they wanted an apology, and 23% said they wanted an assurance that the problem wouldn’t happen again, according to the customer rage research.

They said their complaints infrequently got those results: Companies provided explanations in 9% of surveyed cases, apologized in 18% and gave assurances in 9%.

Customer service technology such as artificial intelligence is less likely to be able to deliver that craving for empathy than human agents, Mr. Broetzmann said.

“A robot cannot be kind and compassionate,” he said.

Write to Katie Deighton at katie.deighton@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



Source link

Previous Post

IBM’s Ginni Rometty on Skill-Building and Success

Next Post

2:00PM Water Cooler 3/6/2023: Eric Adams Edition

TRENDING

Stocks making the biggest moves premarket: BBBY, NKLA,VORB
Markets News

Stocks making the biggest moves premarket: BBBY, NKLA,VORB

April 1, 2023
Economics

Don’t Expand Deposit Insurance. Abolish It!

April 1, 2023
Economics

Announcing 2023 Water Cooler Fundraiser!

April 1, 2023
CFO News

‘I Went Through the Doggy Door.’ When Real-Estate Pros Get Locked Out of Listings

April 1, 2023
Financial Planning

What Is the Optimal Pattern of a Customer Journey?

April 1, 2023

©  CFO News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • CFO News
  • Financial Advisor
  • Financial Planning
  • Markets News
  • Economics
  • Contact

Newsletter Sign Up

No Result
View All Result
  • Home
  • CFO News
  • Financial Advisor
  • Financial Planning
  • Markets News
  • Economics
  • Contact

© 2022 CFO News Hubb All rights reserved.