Consumers demand good service as well as price to stay loyal

Price is still king here when it comes to consumers choosing a product or service provider over another.

However, when it comes to retaining a customer, good old-fashioned service will make them stay or go, according to a study.

The global survey carried out by Accenture found that overall customer satisfaction among Irish consumers has increased from 28% to 36% compared to last year and that “being easy to do business with” is now the main driver of consumer satisfaction.

Price is still the main consideration for Irish consumers selecting a new provider (71%). However, the study found that other factors have grown in importance: Customer service has increased to 58% (up seven points) and the product itself has increased to 51% (up 12 points).

In terms of what most influences future buying decisions, two-thirds said poor customer experiences is the main factor in deciding whether to leave or stay with a provider.

Word-of-mouth also continues to be the most popular and most powerful channel when it comes to marketing products and services to Irish consumers. About 86% of respondents said they rely on word-of-mouth to learn about products and services and that it is also the most important source when deciding to do business with a company.

When it comes to poor customer service, Irish people were found to be the most vocal of their international counterparts in the study, with 92% telling others about their negative experience.

Over half of the Irish people surveyed said they would maintain or increase their spending in the coming year, with 46% actively shopping around for the best deal and 51% saying they do not consider switching service providers to be a hassle. In fact, one in four said they had switched retailers in the past year.

Rebecca Gilmore of Accenture Ireland said the survey showed that old-fashioned principles like customer service were still what Irish consumers valued most.

“While focused on acquiring new customers, organisations need to work harder on impressing and retaining the customers they have and that means getting the basics right when it comes to old-fashioned principles of good customer service,” she said.