Many customers are turning to new providers for energy, insurance, banking or mobile because they feel they are receiving worse benefits than new customers.
A new report from marketing technology firm Wiraya, 'Accessing the Bombarded Consumer', has found that nearly two-thirds of customers feel undervalued by providers during the course of their interactions. In fact, of those who feel undervalued the vast majority (86%) said they would feel more content if they had been contacted via their own channel of choice.
Seventeen percent said they had never received information relevant to them from a provider, a big mistake by brands who already have to battle to get themselves heard in crowded inboxes. Another frustration among customers was being told "your call is important to us" while being kept waiting in a queue, cited by 52%.
"Many businesses still struggle to communicate with their customers in a relevant and timely way," says Sam Madden, commercial director at Wiraya. "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. 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."
But, it's not all about communication. More than 4 in 10 (42%) said they felt new customers receive better benefits than existing ones.