Accenture 2009 Global Consumer Satisfaction Report

Start Making Sense
Defining Customer Experiences that Enable
High Performance
Accenture 2009 Global Consumer Satisfaction Report

Many experts believe that, while the global economy may have turned a corner,
recovery will be prolonged and sluggish. Changing consumer attitudes and
behavior will play a key role in setting the pace of recovery and generating
new opportunities for organic growth. This paper is one of a series of reports
on consumer behavior during the downturn and beyond, based on recent in-
depth Accenture research. In this paper, we highlight key findings from our
most recent consumer satisfaction survey—an annual program—and offer
recommendations for shaping customer service experiences that help capture
and retain valuable relationships.

Customer
Satisfaction

Introduction
Each year, Accenture surveys several more influenced by online information Some of the most successful practices
thousand consumers on their customer obtained from other sources than by the we have seen used by high-performance
service experiences. The key findings provider’s own print and online advertising businesses include:
from this year’s survey highlight several or direct mail. These findings underscore
interesting dimensions of current how consumers increasingly “control • Enabling the most valuable customers to
consumer/provider relationships. the conversation” in this time of digital configure service experiences to their own
Companies eager to achieve or sustain transformation, and the new challenges specifications and preferences.
high performance—in the current faced by marketers attempting to manage • Facilitating repeat interactions between
economic phase and in the upturn to corporate reputations and shape brand customers and the same service agents, to
come—should strive to understand how perceptions in the marketplace. build lasting and deeper relationships.
these issues are playing out in their own
customer base, and make sense of the Given recent economic conditions, it is • Providing highly satisfying “do-it-
implications for future growth and the not surprising that in our global sample yourself” service options for all customers.
impact on profitability. consumers who switch identified price as
the most important factor when choosing • Fostering tighter collaboration between
For example, our research indicates that their replacement provider. It is surprising, customers and agents and between agents
consumers are more demanding than however, how much influence a reputation and other front-line and back-office
ever and that many companies are not for high-quality customer service has in employees, to direct the full force of the
keeping pace, resulting in the highest this decision. In fact, consumers in the enterprise workforce toward delivering a
level of switching due to poor customer emerging markets we surveyed identified satisfying customer service experience.
experiences ever detected by this annual customer service as the most important
• Enabling these practices through
survey (most notably for banks and factor when choosing a new provider.
seamless integration of all service-channel
retailers). Moreover, across industries,
The survey found other interesting customers, and with robust business
consumers perceived little change in
geographic variations. Consumers in intelligence and analytics tools that
how hard providers worked to keep their
emerging markets—an important growth accurately predict customer preferences
business.
opportunity for many companies—are and behavior.
No set of industry providers managed to generally less satisfied than those in
By continually raising the bar for customer
deliver a very satisfying experience to more mature markets with service quality.
service, customers across industries and
than half of their customers–hotels and Their service expectations are increasing
countries are also intensifying performance
retailers came closest. Yet retailers also more rapidly and consumers are more
challenges for companies everywhere.
experienced the highest level of switching, likely to have recently switched providers
However, Accenture believes organizations
pointing out yet again that customer because of poor service. Generational
that recognize they need not be all things
satisfaction scores are weak indicators of differences also emerged. Younger
to all people and, consequently, deliver
loyalty and future business. consumers have higher expectations than
differentiated service experiences when
those of older generations, and are more
At the same time, consumers also appear and where it matters most will be best
likely to switch providers when their
less apt simply to exit a relationship positioned to outperform their competitors
expectations are not met.
immediately when they experience poor and achieve high performance in the
service. Responses to this year’s survey Accenture believes that these findings, upturn.
indicate they are more willing to take which are described in more detail in the
other actions—asking to speak to a body of this report, show how imperative
supervisor, for example, or calling back to it is that enterprises finally leave behind
reach a different representative. However, the “one-size-fits-all” approach to
a very large majority tells others about customers, and fully embrace a service
their bad experiences and a significant model that provides differentiated service
number make negative comments online, experiences based on the expectations and
demonstrating the damage unhappy requirements of individual—and closely
customers can do even when they stay. understood—customer segments and
the current and potential value of those
Similarly, when evaluating alternative segments.
providers to switch their business to,
consumers rely most on information
obtained through word of mouth and are

Accenture 2009 Consumer Satisfaction Report 3

Key Findings
Accenture surveys consumers around the In fact, five of the 12 countries sampled now higher or much higher than they
world annually about specific aspects rated the quality of service they received were five years ago. Moreover, 59 percent
of the customer service experience, from most companies above the global of consumers in these countries maintain
including: average: 3.62 on a 1 to 5 scale, an their expectations are higher than they
increase from 3.57 in 2008. Consumers in were just 12 months ago.
• Their impressions of service quality the United States were the most satisfied
• Their service expectations and how with the quality of service received, Expectation vs. Experience:
well providers are meeting them with an average of 3.74 for 2008 and The Performance Gap
3.83 for 2009. In contrast, South African
As customer expectations increase,
• The aspects of service they value most consumers were the least satisfied (3.22)
companies seem to be falling short,
this year (they were not part of the
• How they react to poor service despite the improved perception of
sample in 2008), and German consumers,
service quality. In fact, just two in five
In 2009, we surveyed 5,050 consumers in who were the least satisfied in 2008,
global consumers said companies meet
12 countries. In this report, we highlight were the second lowest for 2009 (3.36).
their expectations frequently or always.
our key findings and the implications Furthermore, the percentage of consumers
Consumers in mature markets rated
of changing consumer attitudes and whose expectations were frequently or
service quality significantly higher than
behaviors for business performance. always met has declined from 53 percent
those in emerging markets (3.66 vs. 3.47).
In fact, three of the four emerging-market in 2007, to 45 percent in 2008, to just 40
Consumer countries (Brazil, China and South Africa) percent in 2009. Against the backdrop

Expectations Are were below the global average. The
exception was India, which joined the
of ever-growing service expectations,
companies must be concerned about this
Higher than Ever United States, Canada, Australia and the widening gap (see Figure 2).
United Kingdom in rating service delivery
Are Companies Keeping Underscoring this point, only five of
above the global average.
the 12 countries surveyed rated the
Pace? frequency with which companies met
France, in particular, has experienced an
On the whole, consumers around the increase in customer satisfaction, with their service expectations above the
world perceive the quality of customer the proportion of respondents providing global average. Consumers from India,
service to be good, although this positive ratings steadily increasing from Canada and the United States were
perception varies significantly by country. just 39 percent in 2007, to 54 percent among these, with more than 50 percent
However, a closer look suggests that in 2008, to 60 percent in 2009. Brazil indicating their expectations were
companies are failing to build close improved as well, going from 44 percent frequently or always met. In contrast,
ties to their customers. In fact, most in 2007 to 53 percent in 2009. consumers in the emerging countries
consumers do not feel companies are of South Africa, Brazil and China were
satisfying their expectations for customer much less likely to say companies always
Evolution of Consumer
service—particularly in emerging or frequently met their expectations (26
Expectations
markets—and those expectations are percent to 28 percent).
increasing (see Figure 1). While respondents perceive service quality
to be improving, their expectations seem
Current Perceptions of Service to be rising faster. Generally, consumers
Quality have much higher expectations today
than they did five years ago. In fact, their
Globally, the majority of consumers we expectations have increased significantly
surveyed described the quality of the during just the past 12 months—
customer service they experienced as particularly in emerging markets.
good. In fact, although perceived service
quality among respondents in China More specifically, 75 percent of consumers
continues to decline (44 percent in 2007 from the emerging markets of South
to just 35 percent of survey respondents Africa, India, China and Brazil reported
this year), in most other countries this their customer service expectations are
perception has turned upward over
time.

4 Start Making Sense

Figure 1: How have your customer service expectations changed over time?

Expectations are increasing, particularly in emerging markets

Compared to 12 months ago Higher compared to 12 months ago
80%
76%

Emerging 10% 30% 44% 15%
Markets 54%
42% 41%
Mature 10% 25% 5% 34% 31% 31%
60% 29% 29% 28%
Markets
19%
Much/slightly lower The same
Slightly higher Much higher
China India Singapore South Brazil Germany Belgium France United United Australia Canada
Africa Kingdom States

Compared to 5 years ago Higher compared to 5 years ago
89% 87%
80%
Emerging 14% 11% 36% 39%
Markets 59% 56% 55% 52% 52% 51% 50%
Mature 42% 40%
18% 31% 34% 17%
Markets

Much/slightly lower The same
Slightly higher Much higher
China India Singapore France Germany South Brazil Belgium United Australia United Canada
Africa Kingdom States

Figure 2: How often do companies meet your customer-service expectations?

Consumers’ in emerging markets are far less likely to Globally, consumers’ believe that their expectations are
feel their expectations are being met than consumers being met has declined over time.
in other regions.

Emerging
2009 9% 50% 38% 2%
Markets 2009 11% 57% 29% 4%

2008 8% 47% 43% 2%

Mature
8% 48% 41% 2% 2007 5% 42% 49% 4%
Markets 2009

Rarely/Never Sometimes Frequently Always

Note:
All figures in this report showing year-on-year trends Countries sampled in 2008: Australia, Brazil, Canada,
reflect the following sample compositions. China, France, Germany, India, the United Kingdom and
Countries sampled in 2009: Australia, Belgium, Brazil, the United States (N= 4189).
Canada, China, France, Germany, India, Singapore, Countries sampled in 2007: Australia, Brazil, Canada,
South Africa, the United Kingdom and the United States China, France, the United Kingdom and the United
(N= 5050). States (N= 2311).


What Do Consumers access customer service using multiple
channels and to obtain service at
the list of issues consumers find most
frustrating—and also tend to encounter
Care About Most? convenient times. with some frequency.

And Are They Getting Expectations for Service
Globally, consumers are most frustrated
with being kept on hold for a long time
What They Want? Representatives
when contacting customer service and
While consumers have many expectations Regarding the people who provide by having to contact customer service
for customer service, they care most customer service, the most important multiple times for the same reason.
about how well-informed and personable factors to customers are being served Each of these experiences was cited
their customer service representative is, by workers who are polite and friendly, by more than 60 percent of consumers
how fast and efficient customer service knowledgeable and well-informed, as “extremely frustrating” (see Figure
is, how often they are referred to another and who already know the customer’s 4). Furthermore, nearly half said they
service agent and how long it takes a history (why he or she is calling, for encounter such a situation “a lot.”
company to resolve their issue. Similarly, example). Yet approximately one-third
while consumers demand more from of consumers said they are dissatisfied Indeed, we found that consumers
many aspects of customer service, they with agents’ knowledge of their history generally are impatient when it comes
are most likely to expect service to be with the company, which compromises to spending time getting service issues
more convenient and speedy, and to the service experience. resolved. In fact, 60 percent or more
expect their customer service agents to of the global sample are unwilling to
be more knowledgeable. spend more than 30 minutes to have
How Expectations Have
their concerns addressed. Consumers
While companies are performing well Changed over Time
in Brazil, Belgium and France are the
in some areas—in fact, satisfaction has Consumers who expect more from their most impatient, with more than 55
improved slightly between 2008 and customer service experience are looking percent only prepared to spend up to
2009—they still have ample room for for four specific things: more convenient 15 minutes. Conversely, consumers in
improvement in all areas, including customer service (74 percent), more Canada, the United Kingdom, South
those areas consumers perceive to be knowledgeable or better-trained Africa and the United States are the
most important. representatives (67 percent), faster most patient, with more than 30
customer service (66 percent) and more percent of consumers willing to take as
General Expectations for channel options for getting service (64 long as necessary to get their customer
Customer Service percent). In comparison, consumers are service issues resolved.
least likely to expect that the customer
Overall, the perceived importance of
representative who serves them will Beyond wait time, multiple customer
all dimensions of service remained
know more about them. Despite the handoffs are a major frustration, with
substantially the same between 2008 and
economic downturn, being offered more most consumers willing to speak to just
2009. In both years, when asked which
options for handling their personal two people to resolve their issue. Only
general aspects of customer service were
finances is also less important, relative one in four are willing to speak to as
most important to get right, respondents
to other factors, for consumers in most many people as necessary. This level
overall tended to identify issues associated
countries—except South Africa, where 51 of tolerance is more pronounced in
with time: how fast customer service is,
percent expect more of such options. mature markets. In particular, Canada,
how long it takes a company to resolve
the United States, the United Kingdom,
their issue and convenient availability Also on the topic of regional differences, South Africa and Australia are the only
of service. Each of these was cited by expectations are increasing more among countries where about one in three
between 56 percent and 60 percent of consumers in emerging markets across consumers will speak to as many people
respondents as “extremely important.” In nearly all aspects of the customer as required. Less than one in six in the
comparison, access to environmentally experience. (see Figure 3). remaining countries is willing to do
friendly options was the least important
the same. For instance, 71 percent of
customer service criteria, but still Top Causes of Consumer consumers in France are unwilling to
relevant to a sizeable number of survey Frustration speak to more than one person.
participants.
In addition to having high expectations
The single least satisfying aspect of for many aspects of customer service,
service is the amount of time consumers consumers are frustrated by a range
have to wait before they are attended of service hassles. Lengthy hold
to (32 percent satisfied vs. 33 percent times, dealing with multiple agents
dissatisfied, for an average rating on the same issue, having to repeat
of 2.97). In contrast, consumers are information, representatives without
most satisfied with their ability to answers and rudeness are foremost on


Figure 3: How have your customer expectations increased (multiple mentions)?

As a customer, I expect …
Figure 4: How have your customer Higher compared to 12 months ago Higher compared to 5 years ago
74%
service expectations changed
Easier/more convenient to obtain 75%
compared toservice
customer 12 months and five 75%
73% 93%
years ago? China 68%
67%China
89%
Customer service representatives 80% 89%
70%
to be more knowledgeable 67% 61% 85%
India 76%
India 85%
66%
Faster customer service 48% 61% 48%
Brazil 44% Brazil
76% 76%
Average: 41% 71%
64%
3.64 More options for obtaining3.44
3.25 3.93 service 23% 59%
Germany 34%
62% France 48%
5% 67% 59%
15% 17% 34%
39%
Specialized service39% being a
25% for France 22% Germany 23%
31% 36% 34%
good customer 47%
27% 27%
34%
44% UK 31%
25% UK 25%
More options for handling 29%
27% 29%
my personal finances 40%
23% 23%
60%
36%
USA 19% 16% Australia 16%
Customer service representatives 29% 29%
17% Global 2009
to know more about me 60% 23% 31% 31%
30% Australia Mature Markets
22% USA 22%
Other 30% 3% 28% Emerging Markets 28%
4%
1% 21% 21%
10% 10% 14% 16% Canada 24% Canada 24%
19% 19%
Emerging Mature Emerging Mature
Base: Respondents who Marketsraised
Markets Markets Markets have their expectations for customer service.
12 Months Ago 5 Years Ago 2007 2008 2009

Figure 4: How frustrating do you find the following aspects of customer service?

Being on hold for a long time when contacting 1% 3% 12% 21% 63%
customer service
Having to contact customer service multiple 1% 3% 12% 22% 62%
times for the same reason
Having to repeat the same information to
1% 4% 13% 22% 60%
multiple customer service agents
Dealing with customer service agents who
2% 5% 15% 17% 62%
are unfriendly or impolite

Dealing with customer service agents 1% 3% 13% 25% 57%
who cannot answer my questions
Having to talk to multiple customer service agents
1% 4% 15% 26% 54%
while trying to resolve a single question/issue
Running into business policies that get in
2% 5% 18% 27% 49%
the way of my goals
Being sold other products or services when
2% 5% 18% 24% 50%
I contact customer service

Running into technology issues that get in the 2% 6% 20% 28% 44%
way of my goals
Having to wait for a response after I’ve 2% 6% 23% 34% 35%
requested customer service
Having to complete a lot of paperwork or 3% 9% 27% 28% 33%
electronic forms
Not being able to understand information 4% 11% 27% 30% 28%
the company sends me

Not frustrating at all 2 3 4 Extremely frustrating


Figure 5: When you seek customer service, how do you go about getting assistance? (multiple mentions)

Channel preferences by economic region Channel preferences over time

Call for 84% 84%
assistance Call for
87% 85%
assistance
85%
66%
Send an email 51%
61%
Send an email 63%
65%
Search the 44%
internet 52%
30%
Extract info from
Company’s website 42%
Go to the place 41% 42%
of business 42%
34%
Company’s 40%
Go to the place
of business 47%
website 49% 41%

15% Engage in live 13%
Send a letter
6% online chat 17%
20%
2007
15% 2008
Live online chat 13%
35% Send a letter
19% 2009
Mature Markets 13%
4%
Tap into blogs Emerging Markets Search the internet 46%
9% Not included in
Text messaging 5% 2007 and 2008
3% surveys
Text messaging Blogs or online
14% social networks 5%

Many consumers likewise are unwilling satisfaction. Moreover, consumers a smaller proportion of consumers
to follow up on a customer service around the world increasingly feel globally reported having gone to
issue; only one in three will follow up technology is significantly improving a physical location when seeking
just once before giving up. Another the customer experience. At the customer service, preferring to take
one in three will try two or three times, same time, the digital transformation advantage of more virtual or convenient
while the remaining third will actually of the customer experience entails ways to connect with the companies
keep following up until they get what considerable risk: These channels also they do business with, such as emailing
they need. Consumers in the United amplify the effect of poor customer customer service, which has increased
Kingdom, Canada, the United States, service. In fact, one quarter of significantly in popularity in China and
South Africa and Australia are the most respondents have used these channels France since 2008.
determined to resolve customer service to relate their negative customer
issues no matter what it takes, while experiences to others (see Figure 5). Though emerging markets prefer
those in Singapore are the most inclined calling for assistance to sending an
to not follow up at all (although just 5 email, they also are much more likely
Migration to Digital Channels
percent say this). than mature-market consumers to
All countries sampled make the most use new technologies for contacting
use of calling for assistance when service providers—especially text
Digital seeking customer service. However, messaging and live online chats. In
Transformation digital channels such as email, text
messaging and online chats are also
fact, just 29 percent of emerging-
market consumers, vs. 72 percent of
popular among consumers in emerging
Do You Know Where Your markets, and are being used with
those in mature markets, indicated
they have never used text messaging to
Customers Are? growing frequency by consumers in access customer service. Similarly, only
When they need assistance, consumers mature markets. 22 percent of consumers in emerging
still are most likely to prefer talking to markets, compared with 48 percent in
a live agent over the phone. However, Our research confirms online
mature markets, said they have never
digital channels are gaining ground in technologies indeed are gaining ground
used live online chats for service.
terms of frequency of use and consumer as service channels. In the past year,


Figure 6: Do you agree or disagree with the following statement: “The increased use of technology
in customer service has improved the level of service significantly in the past five years”?

Globally, consumers are increasingly positive about the Consumers in emerging markets tend to be more positive about
impact of technology on the customer service experience. the impact of technology on the customer service experience.

Emerging 2009 14% 25% 47% 14%
Markets 2009 5% 10% 54% 32%

2008 20% 27% 40% 13%

Mature
Markets 2009 17% 30% 45% 8%
2007 22% 28% 40% 10%

Strongly Somewhat Somewhat Strongly
Disagree Disagree Agree Agree

Despite having reported they receive in the past five years. In contrast, Australia (a 13-point drop), Germany (a
poorer overall service and that their German, Australian and Canadian decline of nine points), and Brazil and the
expectations are met less often, consumers are the least convinced there United Kingdom (each of which registered
emerging-market consumers are much has been an improvement with the a slide of eight points). These figures
more satisfied than their mature-market increased use of technology. In fact, all likely indicate not only that consumers
counterparts with online self-service; of the mature-market countries scored are becoming more comfortable using
and, telephone customer service is under the global average with regard technology tools to access customer
highly regarded in China and India. to agreement that technology has service, but also that companies
However, on a global basis in-person significantly improved customer service. themselves are doing a better job
customer service at a place of business employing such tools to improve, rather
or a store is the general type of service However, despite the mature vs. emerging than hamper, the service experience.
with which consumers are most market split over whether the increased
satisfied. In comparison, automated use of technology has improved levels
How Digital Media Affect
telephone customer service receives the of customer service, an overall global
Reputation
lowest rating across all geographies. increase in agreement is noted for 2009,
suggesting technology is turning a corner Of course, consumers spread the word
in terms of becoming more of a help than about their experiences with providers
The Impact of Technology on to other people, and today they have
a hindrance in consumers’ eyes. In fact,
Customer Satisfaction more powerful and efficient tools for
the global percentage of consumers who
Consumers in emerging markets are agreed technology has improved service doing so. Our research confirmed this
highly likely to agree that the use of has increased by eight points from 2008 shift: Nearly nine in 10 consumers
technology in customer service has to 2009, and by 11 points since 2007 (see globally told the people around them
significantly improved the service Figure 6). about their bad experiences. Consumers
levels they experience. In fact, more in emerging markets, especially South
than 84 percent of emerging-market This shift also can be seen in the Africa, China and Brazil, are the most
consumers in Brazil, India and China substantial decreases during the past inclined to speak to others about bad
and 71 percent in South Africa agree three years in the percentage of those experiences. Furthermore, one in six
that such an improvement has occurred who strongly disagree that technology consumers has complained to a larger
has been beneficial, most notably in


Figure 7: In the past year, have you done one of the following after having a bad customer service experience?

98% The vast majority of consumers share negative customer
South Africa 31% service experiences with others, and many—particularly
97% consumers in emerging markets—use online channels to
China 44% broadcast these experiences.
97%
Brazil
49%
93%
Singapore 30%
93% 89%
Australia Total
18%
25%
92%
India
33% 87%
Mature
89% Markets
United Kingdom 21%
22%
87% Emerging 96%
Canada
16% Markets 40%
86%
United States
20%
85%
Belgium
17%
82%
Germany
17%
82%
France
23%

Told people around me about the experience (e.g., friends, family, coworkers)

Posted negative comments about the experience online (e.g., blogs, Facebook)

audience via online sites such as
Facebook or blogs (see Figure 7).
When Service year asked to speak to a supervisor when
they experienced bad customer service
Falls Short (41 percent vs. 43 percent) or ended the
Globally, one-quarter (25 percent) interaction and tried to reach a different
of all consumers will go as far as Do Companies See agent (19 percent vs. 14 percent). In
posting negative comments about bad
the Full Impact? contrast, fewer customers simply quit
experiences online. This figure rises to two doing business with a company (16
in five (40 percent) in emerging markets A bad customer experience has
implications beyond negative word percent vs. 23 percent).
as a whole. The countries with consumers
most inclined to do this are Brazil (49 of mouth. When first experiencing In fact, speaking to a supervisor was the
percent) and China (44 percent). poor service, consumers are most most common response to bad service in
likely to ask to speak to a supervisor. all countries this year. This is particularly
Another sign of the growing impact However, 16 percent told us they went true in the mature markets we surveyed,
of digital media: consumers collecting so far as to stop business with the where nearly half of our respondents
information about potential new offending provider immediately—in reported taking this action compared
providers reported relying on corporate some countries, as many as 28 percent with 37 percent of respondents in
websites more than any other source of the respondents took this drastic emerging markets. However, there are
except people they know—and say they action. In fact, overall poor service some notable differences among these
are more influenced by these sites than quality remains the number one force mature markets: Among all countries
by any channel except people they “pushing” customers into the arms of surveyed, consumers in the United States
know (see Figure 8). waiting competitors. (58 percent) and Canada (56 percent)
were most likely to ask to speak to a
Immediate Responses to supervisor; consumers in Germany (25
Poor Service percent) and Belgium (22 percent) were
In 2009, consumers experiencing bad least likely.
customer service were generally more
While asking for a supervisor is most
tempered in their reactions compared
common, other responses to bad
with previous years (see Figure 9). For
service are evident around the globe:
example, slightly more consumers this
Consumers in China, Singapore and

Figure 8: Information sources consumers use to evaluate new providers.

80%
Information from people I know 68%
66%
Corporate website 45%
54%
Print advertising 32%
48%
On-premise/in-store information 40%
48%
Online advertising 25%
46%
Paid advertising on TV or radio 29%
Online information from 44%
other sources 31%
29%
Direct mail or telemarketing 21%

What information sources respondents used (multiple mention) Arrows highlight
discrepancies of >20%,
How important these surces were in their decision process between usage and
(Important/Very Important) importance

Figure 9: When you have a bad customer service experience, which of the following are you most likely to do?

Responses to bad customer service experiences:
All customers By country

2009 9% 13% 16% 19% 43% United States 6% 6% 11% 19% 58%

Canada 6% 7% 14% 17% 56%
2008 8% 15% 23% 14% 41%
Australia 5%7% 19% 21% 48%
2007 9% 8% 15% 19% 49%
United Kingdom 8% 15% 13% 16% 48%

South Africa 9% 15% 16% 14% 47%
Emerging vs. mature markets
India 9% 20% 9% 17% 44%
Emerging
Markets 2009 11% 16% 19% 18% 37%
Singapore 15% 15% 15% 18% 37%
Mature
Markets 2009 9% 12% 15% 20% 45% Brazil 8% 14% 28% 21% 28%

France 14% 15% 27% 16% 28%
End the encounter
China 17% 15% 21% 19% 27%
Send a formal complaint to the company

Quit doing business with that company immediately Germany 12% 20% 11% 33% 25%

End the encounter and contact back later Belgium 15% 18% 20% 25% 22%
Ask to speak to a supervisor


Belgium were the most likely simply to level of switching due to poor service Reasons Why Consumers Leave
end the contact when encountering a occurred in the retail (31 percent) and Providers
bad customer experience. Consumers banking (27 percent) sectors. According to our findings, respondents
in France and Brazil were the most who left providers during the 12 months
likely among all countries to stop doing In comparison, the lowest level of
switching occurred in the life insurance prior to the survey were most likely to
business with a company immediately. have left due to the overall poor quality
And consumers in Germany, Belgium (9 percent) and airline (8 percent)
sectors. Even more encouraging is the of the customer service they experienced
and India were the most likely to send a (62 percent). After customer service, the
formal complaint to a company. fact that switching due to poor service
declined for some industry sectors in a most often cited reasons were finding
number of countries. a lower price elsewhere (48 percent)
Defection Due to Poor Service service representatives who lacked the
Even when consumers do not switch Consumers in emerging markets were knowledge they expected (46 percent)
immediately, companies face significant far more likely than those in mature and finding a lack of customized
consequences from delivering unsatisfying markets to have switched providers (87 solutions (38 percent).
customer experiences. In fact, according percent vs. 64 percent). For example, 81
percent of consumers in South Africa, Mature markets appeared to be
to our findings, two in every three global
85 percent in India, 88 percent in Brazil more sensitive to the overall quality
consumers switched providers in at least
and 93 percent in China left at least one of the experience compared with
one industry in the past year because of
provider in the past year because of poor emerging markets, where consumers
poor customer service. This is the highest
service. At the other end of the spectrum were more focused on the availability
level of switching ever reported in our
were consumers in the United States, of customizable solutions or the
survey (see Figure 10).
where only 56 percent of consumers knowledge of the service representative.
More precisely, 69 percent of all switched companies in the past year
consumers in 2009 switched providers at because of poor service. Compared with Reasons Why Consumers Choose
least once during the past year because our 2008 survey, switching was relatively New Providers
of poor customer service. This represents constant in all countries except France It is not surprising that when consumers
a two-point jump from 2008 and a and Canada, where switching increased do decide to leave a company, price
10-point leap from 2007. The highest 23 points and nine points, respectively. and service are the two biggest


Figure 10: Percentage of consumers who switched any company in any industries
because of poor customer service over the past 12 months.
Switching over time
All respondents: Emerging vs. Mature Markets

Global 2009 31% 69% Emerging 13% 87%
Markets 2009

Global 2008 33% 67%
Emerging 10% 90%
Markets 2008

Global 2007 41% 59% Mature 36% 64%
Markets 2009

Mature 40% 60%
Did not switch Switched Markets 2008

Switching over time

By Country

China 2009 7% 93%

China 2008 5% 95%

Brazil 2009 12% 88%

Brazil 2008 10% 90%

India 2009 15% 85%

India 2008 14% 86%

South Africa 2009* 19% 81%

Belgium 2009* 23% 77%

Singapore 2009* 24% 76%

France 2009 25% 75%

France 2008 48% 52%

Australia 2009 33% 67%

Australia 2008 36% 64%

Germany 2009 36% 64%

Germany 2008 36% 64%

United Kingdom 2009 36% 64%
United Kingdom 2008 36% 64%

Canada 2009 37% 63%

Canada 2008 46% 54%
United States 2009 44% 56%
United States 2008 45% 55%

Where increase or decrease * New countries sampled
Did not switch Switched of switching between 2008 in 2009. No trend data
& 2009 is > 5% available


Figure 11: When choosing among competing products and services, how much does the country where the
product or service comes from matter to you?

For the most part, I prefer to give my business to 74%
companies that are based in my own country 76%
66%

When choosing between products and services, I think 71%
about this issue more than I used to, but I’m still more 69%
still more likely to decide based on other factors 75%

I don’t care that much where a company is from, but I 58%
do care where the products I’m considering have been 55%
manufactured 65%

Which country produced a product or service that I’m 52%
considering does not matter to me 48%
66%

I like to try products and services from other countries 44%
37%
63%

Global 2009 Mature Markets Emerging Markets

factors influencing their choice of a (76 percent vs. 66 percent). This is determined the consumers most likely
replacement provider. This does vary especially true among consumers in to switch were those who were least
somewhat by region: Customer service Australia (85 percent), the United States satisfied with the following factors, in
was the most common differentiating (84 percent), France (81 percent) and order:
factor in emerging markets when Canada (81 percent).
choosing a new service provider, 1. Convenient availability of customer
whereas consumers in mature markets In comparison, emerging markets seemed service.
made these decisions based more on to care more about where the product 2. The amount of time they wait to be
price. Regardless, price has increased in is manufactured: Two in three of these served.
importance globally between 2008 and consumers (63 percent) indicated they
3. How polite, friendly and
2009, no doubt because of the current like to try products and services from
knowledgeable customer service
economic conditions. other countries, compared with only
representatives are.
two in five customers (37 percent) in
Beyond service and price, another factor mature markets. Consumers just about High levels of frustration among these
also appears to have some influence everywhere, though, admitted they are respondents also play a role. A similar
over the companies consumers choose thinking about these issues more than regression to the one just described
to do business with: where the company they used to (71 percent). showed that these respondents were
that provides the product or service most often frustrated by (in order):
is located. Three in four consumers Factors Influencing Loyalty
globally said they prefer to give business 1. Being on hold for too long.
Not surprisingly, consumers who switched
to companies based in their own 2. Having to repeat the same
providers in the past year because of
country (see Figure 11). information to multiple customer
a poor customer experience were less
satisfied than consumers who stayed loyal service agents.
This sentiment is, however, more
prevalent in mature than emerging across all dimensions of customer service. 3. Dealing with customer service
markets: Consumers in mature markets representatives who are unfriendly or
What are the factors that discouraged impolite.
are more inclined to give preference to
loyalty? A regression analysis of the
companies based in their own countries
respondents in our global sample
than those in emerging markets


Industry Variations
Consumer Perceptions by Industry Sector
Where consumer perceptions are During the past year, many providers level is retail, with 45 percent of
concerned, the Accenture 2009 reported making customer satisfaction consumers responding to the survey
Customer Satisfaction Survey found and retention their top priorities, to indicating participation. In the other
leaders and laggards in customer service protect revenues during economic industries we examined, the number of
quality. recession. Their efforts appear to have respondents who participated in these
been lost on many consumers, according programs was far lower—between 9
Our respondents put hotels and retailers to our survey. While results vary by percent and 26 percent.
at the high end of the performance industry, most of our respondents
spectrum, and located life insurers, said they perceived no real changes in Nearly half of the consumers in mature
cable companies, utilities and phone customer service (see Figure 12). markets reported participating in
companies at the opposite end. Notably, retailer loyalty programs, compared with
however, fewer than 50 percent of Formal programs to build customer only 34 percent of those in emerging
all consumers globally described loyalty may be having limited impact markets. In addition, mature-market
themselves as “very satisfied” with as well. Between 39 percent and 49 consumers were much more likely than
customer service quality. Moreover, the percent of our respondents believe their emerging-market counterparts
percentage of very satisfied consumers loyalty programs are effective at to have taken advantage of loyalty
was less than 50 percent in every persuading them to continue doing programs in the other nine industries
provider category covered in this survey business with a company—particularly included in our study. Consumers in
(airlines; banks; hotels; Internet service hotels and retailers. However, less than Germany, Austria and France were the
providers; landline, wireless and mobile one in four respondents participated in least likely to be won over by such
phone companies; life insurers; retailers; any loyalty program in the past year. The programs.
and gas and electric power companies). industry with the highest participation

Figure 12: How consumers perceive customer service: The industry view

How satisfied are you overall with the level of To what extent do you feel that companies in the following industries
customer service delivered to you by companies have changed their customer service efforts in the past 12 months?
in the following industries?

Hotels 4% 49% 47% Retailers 3% 8% 46% 33% 11%

Retailers 6% 51% 43% Banks 5% 9% 45% 30% 11%

Internet service Internet service
13% 48% 40% 4% 9% 49% 28% 10%
providers providers
Wireless/cell phone 12% 49% 39%
Wireless/cell phone 5% 8% 52% 26% 9%
companies companies

Banks 14% 49% 38% Hotels 3% 5% 60% 25% 8%

Cable/satellite television 4%
Airlines 11% 52% 37% 8% 56% 24% 8%
service providers
Home telephone Home telephone
15% 51% 34% 5% 9% 55% 23% 7%
service providers service providers

Utility companies 14% 52% 34% Airlines 5% 7% 58% 22% 9%

Cable/satellite television Utility companies 6% 11% 60% 18% 6%
14% 53% 33%
service providers

Life insurance providers 13% 54% 32% Life insurance providers 4% 7% 70% 14% 5%

Not satisfied at all (1 to 3) Satisfied (4 to 7) Very satisfied (8 to 10) Doing much less to keep my business Doing slightly less No change

Doing slightly more Doing much more to keep my business


Age Matters
Consumer Attitudes and Behaviors by Age Group
Upholding the conventional wisdom, our expectations regarding the knowledge consumers were also more prepared to
survey found that younger consumers and training of service representatives follow up as often as it takes to resolve
had higher service expectations, were and were less enthusiastic about the their issue.
less tolerant of bad service, preferred role of technology in customer service—
technology tools that help them although they were generally more Not surprisingly, given their impatient
streamline the service experience satisfied with service quality overall. For nature, younger generations appeared to
and were much more likely to switch their part, younger generations were be more inclined to switch providers as
providers when their service expectations more satisfied with service provided by a result of bad service. Indeed, three in
were not met. more innovative methods such as online four Generation X and Y members have
chat or self-service websites. switched because of poor service in the
The expectations younger consumers past year—compared with 64 percent of
have for customer service have also Younger consumers also appeared Baby Boomers and 52 percent of Seniors.
been increasing at a much steeper to be less patient about waiting for
rate compared with older generations. customer service issues to be resolved. When choosing new providers, younger
Younger buyers were also less likely They reported being unwilling to wait consumers said they focus on a larger
to believe providers meet their more than 15 minutes for a resolution, number of considerations than other
expectations. In particular, younger whereas one in three older consumers generational groups did, including
generations had significantly greater said they were prepared to wait “as price, customer service, convenience
expectations of speed and multi- long as it takes.” Similarly, two in three and promotions. They were more open
channel options for obtaining service. younger consumers were willing to than older consumers to trying products
They were also more positive about speak only to one or two service agents, and services from other countries, and
the impact of technology on customer whereas older consumers were more said they use a wider range of sources
service improvement. In contrast, Baby willing to speak to as many people to collect information about potential
Boomers and Seniors had much higher as necessary (see Figure 13). Older providers.

Figure13: Resolving customer service issues: Generational differences

Typically, the amount of time I’m willing to spend Typically, the number of people I’m willing to talk
on getting my customer service issue solved. to while trying to resolve my customer service issue.

Global 2009 36% 27% 10% 3% 25% Global 2009 28% 39% 6% 24% 3%

Seniors 35% 24% 9% 2% 31% Seniors 15% 44% 5% 33% 3%

Baby Boomers 34% 24% 9% 3% 31% Baby Boomers 24% 37% 6% 31% 2%

Gen X 38% 27% 9% 3% 23% Gen X 30% 39% 7% 21% 3%

Gen Y 37% 31% 11% 3% 18% Gen Y 32% 38% 7% 18% 5%

Up to 15 minutes Up to 30 minutes Up to an hour 1 person 2 people 3 people As many people as necessary

Several hours As long as it takes Prefer not to talk to anyone if there are alternatives


Recommendations
These findings highlight the critical Putting Customers in Charge Demonstrating State-of-the-Art
role that customer service experiences One way an enterprise can meet the in “Do-It-Yourself”
play in retaining customers, and even in service expectations of a diverse Over the past decade, customers have
attracting new ones. They also highlight customer base is to enable customers grown not to simply accept self-service
how increasingly difficult is it for to configure their own experience. but to expect and even prefer it. For
companies to keep pace with rising and As consumers’ needs and behaviors instance, many air travelers now prefer
changing expectations and satisfy the continue to diverge and fragment, to check in and print their boarding
widely varying expectations, needs and enabling them to have more influence passes from their home computers or
attitudes of customers, not only from or even control over how they interact airport kiosks rather than waiting for
country to country but also from age with a company can go far toward personal service from a counter agent.
group to age group. building close, lasting relationships As consumers’ familiarity with self-
Marketing-savvy companies have long across the generational and geographic service channels increases so will their
understood that different customers spectrum. For instance, a company expectations for speed, convenience and
desire different things and value them may decide to enable its highest-value personalization. At minimum, companies
differently. Yet while this knowledge has customers to choose for themselves must keep pace with these expectations
informed their marketing strategies, it which channels they will use to and, at best, offer highly differentiated
has had less influence on later stages obtain service, which service agents experiences that will be difficult for
of the customer lifecycle. In this time they want to interact with and which competitors to match or best.
of heightened cost pressure, rapidly service options they expect to be
changing market dynamics and consumer offered. The company might enable Making Collaboration a Focus of
values, companies can no longer afford customers in other tiers to choose from Innovation
a “one-size-fits-all” model for customer predefined “service bundles” or direct
Many companies will find that fostering
service. They must shift toward a more their transactions toward lower-cost
more collaboration—with external
customer-centric model—creating and channels.
customers, between employees, across
delivering value-based, differentiated value-chain partners—a more and
service experiences that result in Letting Familiarity Breed Loyalty more powerful tool for differentiating
predictable buying behavior and loyalty. Customers tend to prefer businesses service. Emerging collaboration
that make them feel welcome— technologies have the potential to
Differentiated service experiences not
something difficult for large improve the speed and quality of service
only help to make service more relevant
enterprises to do in ways that feel interactions dramatically. Picture, for
and attractive to customers, but they
authentic. One way to foster this example, a field technician who can
also help companies to more effectively
feeling is to enable customers to build transmit a video image of a customer’s
marshal limited service resources. In
personal relationships with specific broken device to the home office,
other words, companies need not try to
service personnel, through repeated where product experts diagnose the
be all things to all people, but should
interactions over time. For instance, problem quickly and relay precise repair
rather strive to make smart decisions
when a customer expresses satisfaction instructions. Or, imagine a call-center
about what makes the most sense
with the technician who installed his agent and an end-user having a three-
for themselves and their customers.
home theater system, the company way phone conference with a product
This involves satisfying as much as
should send the same technician the engineer about how best to configure
possible the expectations of customers
next time the customer needs service. the customer’s home-computing system.
who matter most while setting the
Companies may even enable customers Such examples illustrate in real terms
appropriate service expectations for
to contact preferred agents directly how companies can turn the old adage
lower-value customers immediately at
through email or Short Message Service that customer satisfaction is everyone’s
the time of purchase to dramatically
when they need help or information. job from a business principle into real
help reduce the incidences of
Customers who feel strong connections business practice.
dissatisfaction.
to service agents may perceive the cost
of switching to be simply too high to All these practices depend on
Some of the most successful practices
defect to other providers. maintaining seamless integration across
we have seen used by high-performance
all the channels customers use to
businesses include the following.
obtain service. They also require robust
business intelligence and analytics
tools that enable companies to gather


and analyze a broader range of data— practices, and the rapid emergence of needs and preferences of the most
including customer actions, preferences digital media and social networking, to valuable and profitable customers and
and product-usage information. name only a few. prospects, while providing customer
These capabilities make it possible to service experiences appropriate to less-
understand the customers’ true value to The hurdles for maintaining high engaged or less-profitable segments.
the company, predict customer behavior performance—so closely tied to The result may be a better return on
more accurately and identify innovative customer acquisition and retention—look customer service investments—in terms
ways to engage customers in future especially steep for companies seeking of customer loyalty, preference and
interactions. to gain or grow their presence in advocacy—and high performance over
emerging markets. Consumers in these the long term. In the digital era, when
The findings from the Accenture 2009 locales demonstrated lower satisfaction any service misstep can quickly become
Customer Satisfaction survey indicate levels, more rapidly increasing service a public relations nightmare, achieving
many businesses across many industries expectations and a greater likelihood to the right alignment between service and
continue to fall short of consumers’ switch providers. If those companies also segment is not simple but is possible
heightened expectations and to suffer cater to the coveted younger segments through the combined power of data,
from consumers’ increased willingness of society, the challenges continue to analytics, workforce talent, operational
to leave providers that fail to meet these mount: Younger customers have higher design and performance management.
expectations. expectations than older ones; those
expectations are rising at a faster pace;
Besides responding to the steady erosion and the younger set is more likely to
of customer loyalty, companies must also
deal with the fallout from significant
walk away when dissatisfied.
Share it:
economic, cultural and technological Faced with so many and such varied
changes, such as consumer’s renewed challenges, aiming to be all things to all Facebook
sense of thrift, the imperative to adopt customers is unlikely to be a winning
more sustainable strategy. High-performance businesses Digg
will embrace a more differentiated
model, closely aligned to the distinct Delicious


About the Research
In 2009, we completed our fifth edition of this study, which
included 5,050 people. Participants—who were surveyed via the
Internet from June 19, 2009, to July 17, 2009—represented 12
countries, the largest number in the five years we have been
conducting this study. Participating consumers also span the age
spectrum, with approximately 30 percent representing Generation
Y, 30 percent Generation X, 35 percent Baby Boomers, and seven
percent Seniors.

Country N Generation N
Australia 302 Gen Y 1483
(Less than 31 years old)
Canada 306
Gen X 1427
France 300 (31 to 44 years old)
Germany 302 Baby Boomers 1786
United Kingdom 1003 (45 to 63 years old)

United States 1006 Seniors 354
(64 plus years old)
Belgium 304

Singapore 300
Total 5050
China 302

Brazil 316

India 304

South Africa 305

Total 5050


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Accenture 2009 Global Consumer Satisfaction Report

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