The report, carried out by marketing technology company Wiraya quizzed customers of banks, energy companies, mobile providers and insurance firms who had switched provider in the previous six months.
When questioned about their reasons for leaving, relevancy and timeliness had the biggest impact on loyalty. Nearly 1 in 5 (17%) complained that they never received relevant information. Another fifth (20%) said they received relevant information but not when they wanted it.
More than half (51%) said they would be happy to receive information about loyalty programmes. Most said they wanted to know important facts about their account such as if their card or payment has been declined (45%), or if there’s been a notification of a renewal date end (38%).
The majority (62%) said that they didn’t feel valued by the provider throughout the course of their contract. One of the main gripes consumers have is the preferential treatment given to new customers. Nearly half (42%) said they received worse benefits as existing customers compared to new customers.
Being told ‘your call is important to us’ while waiting in a queue is the most frustrating thing to hear, according to 52% of respondents. Receiving irrelevant information (44%) and being asked for the same information twice (41%) also topped the list of gripes.
Overall, banks and mobile providers performed slightly better than insurance and energy when it came down to customer value. The findings clearly indicate that customers want brands to communicate but in a more appropriate and personalised way tailored to individual customer needs.
Wiraya UK director Sam Madden said: “Many businesses still struggle to communicate with their customers in a relevant and timely way. In the age of the bombarded consumer, where individuals receive hundreds of marketing messages a day, it’s no surprise consumers are left unsatisfied and prone to churning. Using the vast amounts of data many brands now hold and overlaying this with technology such as artificial intelligence can help create more engaging messages delivered in a manner chosen by the customer. Having a more service oriented approach that focuses on building loyalty not only reduces churn, but makes better business sense from a cost and reputation perspective.”