Youth won't tolerate bad service

Johannesburg - Younger, more impatient consumers were inclined to complain or switch providers as a result of bad service, global management consulting, technology services and outsourcing company Accenture said in a report on Tuesday.

The group's annual consumer satisfaction survey revealed that consumers in emerging markets of South Africa, India, China and Brazil expected better service for their buck than five years ago.

Countries value quick turnaround, speedy resolution of customer complaints and convenient service availability most, Accenture said.

"These markets share a common element - a younger and more demanding consumer market. Technology has made the world more accessible to this younger market, and given them easier access to developed markets, either through online purchasing or travel, opening up their purchasing options vastly," said Nikki Tyrer, CRM Lead Accenture South Africa.

"Given the impatience typically intrinsic to younger consumers, they are more inclined to complain or switch providers as a result of bad service."

Accenture's consumer satisfaction survey revealed that when these requirements are not met, consumers were more likely to defect to a competitor than was historically the case.

As many as 69% of all consumers in 2009 switched providers at least once in the preceding year due to poor customer service, with the highest level of defectors switching brands in the retail (31%) and banking (27%) sectors.

"Consumers in emerging markets are an important growth opportunity for many companies, and this market segment should be seen as vital to the success of South African companies, considering that the rate of switching is higher in other emerging markets, with South Africa at a defection rate of 81%," Tyrer said.

The report found that 74% of respondents were looking for a more convenient customer service, 67% looked for a knowledgeable or better- trained representative, and 66% wanted faster customer service, with 66% looking for more channel options for getting service.

"We all understand the importance of customer service and the impact that good customer service has, not only our image as an organisation, but on our bottom line. However, while customer expectations are on the increase, companies are not cognisant of the full impact of bad service on their business and seem to continuously fall short of providing quality service," said Tyrer.

Accenture noted the importance for organisations to leave behind the "one size fits all" approach for customers and embrace a service model that provided differentiated service experience based on expectations and a closely understood customer segments.

- I-Net Bridge