accenture global consumer study 2011

Copyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Accenture Global Consumer Study

Summary of Key Findings

Accenture Global Consumer Survey

2Copyright © 2011 Accenture All Rights Reserved

The Accenture Global Consumer Survey is an annual research project that assesses consumer

attitudes toward customer service and marketing and sales practices.

The research focused on country-specific and industry-specific consumer behaviors and perceptions related to:

• Marketing & Sales practices in terms of channels, experience and loyalty programs

• Customer Service in terms of changing expectations and experience

• Consumer involvement, satisfaction, loyalty, advocacy, buying intentions across industries and the role of pricing

• Digital and Social Media adoption and impact

Accenture surveyed 5,841 end consumers in 17 different countries via the Internet in July-Sep 2010.

Respondents were asked to evaluate 10 industry sectors (up to four industries per respondent)

Methodology

3Copyright © 2011 Accenture All Rights Reserved.

Emerging Markets(n=1,930)

Mature Markets(n=3,911)

By Country

Australia 375

Belgium 331

Brazil 345

Canada 354

China 303

France 377

Germany 355

India 300

Ireland 306

Italy 359

Japan 349

Mexico 354

Singapore 302

South Africa 326

Spain 348

UK 317

USA 440

Total 5841

Industry Responses

Gas & Electric Utilities 2,123

Landline Phone Providers 988

Internet Service Providers 1,230

Consumer Electronics

Manufacturers1,295

Life Insurance Providers 1,297

Wireless Phone Companies 3,196

Cable/Satellite Providers 1,537

Retail Banking/Financial

Services3,117

Consumer Goods Retailers 2,568

Travel & Tourism Providers 1,272

Executive Summary

• For the first time in Accenture’s six years of studying consumer behavior, fewer customers say

they switched service providers than in prior years. This finding reverses a trend seen in each

of the previous four years, in which consumers said poor customer satisfaction lead them to

switch providers.

• At the same time, customers express rising expectations and their satisfaction with the

customer service offered by their service providers continues to decline. In fact, the study

shows that consumer satisfaction is down across the board – in each of the 11 service

characteristics survey respondents were asked to rate. Consumer satisfaction declined in

areas ranging from having customer service available at convenient times to being able to

access service through multiple channels.


Executive Summary (continued)

• The study suggests that one explanation for this seeming paradox is that other factors are

positively influencing customers to remain with their providers, in spite of poor experience with

customer service. Those factors are:

– Increased use of technology, such as e-mail advertisements, online banners, product comparison tools

and online ordering during the buying phase, has improved the consumer experience when deciding to

purchase a service provider’s offerings.

– Increased use of technology for customer service through channels such as automated phone

attendant, live Internet chats and self-service options on a website has improved post-sale consumer

interactions with providers.

– More consumers are participating in loyalty programs, and loyalty programs are persuading them to

stay with their providers. We believe loyalty programs can be an effective way to set expectations

earlier in the customer relationship, and ultimately improve trust and satisfaction.

– Consumers are getting better more and better information from each other. Word of mouth is the

source of information that survey respondents use the most and consider most important when

deciding whether to do business with a service provider. ―Word of mouth‖ is now amplified by social

media sites and networks, vastly expanding the reach of this traditional form of information sharing.

• Still, switching remains high among customers—64 percent of customers switched away from

at least one service provider in 2010, up from 49 percent in 2005.


Key Findings Sections


• Satisfaction with Customer Service

• The Buying Experience and Purchasing Behaviors

• Technology

• Trust and Loyalty

For the first time in our survey‘s history, the number of consumers who switched service

providers as a result of poor customer service declined in 2010

• Two in three consumers have switched

companies in the past year in at least one of the

industries covered by the survey due to poor

customer service. That percentage is down from

the 2009 survey (69%), but still significant.

• Consumers in emerging markets are more

inclined to switch providers due to poor service

across all industries, especially within the retail

and banking industries.

Percentage of consumers who switched any service provider in any industry due to poor customer service

Switching - Global Sample Switching by Industry - Emerging vs. Mature Markets

Satisfaction with Customer Service


Customer service expectations globally continue to rise compared to 12 months ago as

well as five years ago. The change in expectations is consistently higher in emerging

markets.

Change in customer service expectations in 2010 as compared to 12 months and five years ago

5 y

ears

ag

o12 m

on

ths a

go Emerging

Emerging

Mature

Mature

Global Sample Emerging vs. Mature Markets



How have your customer service expectations changed as compared to 12 months and five years ago?

The customer service areas for which expectations have risen most are easier and more

convenient service, more knowledgeable representatives and faster service.

In what ways have your customer service expectations increased? (Choose all that apply):

Global Sample and Emerging vs. Mature Markets

Easier/more convenient to obtain customer service

Customer service representatives to be more

knowledgeable

Faster customer service

More options for obtaining service

Specialized treatment for being a good customer

More options for handling my personal finances

Customer service representatives to know more

about me

Other

• Among the people saying they have higher customer expectations now, the greatest increase globally is for more convenient customer service (76%), more knowledgeable or better trained customer service representatives (74%), and faster customer service (71%).

• Fewer consumers expect that customer service representatives know more about them (only 32%, though a substantial increase since 2009, where only 19% held this expectation).

• Emerging markets tend to have more areas where their expectations are on the rise compared to mature markets, the biggest difference being around specialized treatment for being a good customer (60% compared to 39% mature markets).



Being on-hold for a long time when contacting customer service

Dealing with customer service agents who are unfriendly or impolite

Dealing with customer service agents who cannot answer my questions

Having to talk to multiple customer service agents while trying to resolve a single question/issue

Running into business policies that get in the way of my goals

Running into technology issues that get in the way of my goals

Being sold other products or services when I contact customer service

Having to wait for a response after I’ve requested customer service

Not being able to understand information the company sends me

Having to contact customer service multiple times for the same reason

Having to repeat the same information to multiple customer service agents

Having to complete a lot of paperwork or electronic forms

Consumers find themselves most frustrated with being on hold for a long time when

contacting customer service and having to contact customer service multiple times

for the same reason

Primary frustrations with customer service

Global Sample



At the same time, satisfaction with customer service continues to decline. Consumer

satisfaction with all 11 service satisfaction characteristics measured decreased from the

previous year.

Consumers‘ levels of satisfaction across 11 characteristics of customer service

Gen

era

l C

hara

cte

risti

cs

Co

mp

an

y R

ep

resen

tati

ves

Having access to environmentally friendly options

The amount of time it takes to read and understand information the company sends me

Being able to resolve questions/issues on my own, without speaking to a service agent

The amount of time it takes to completely resolve my issue or problem

The amount of time I have to wait to be served

Having employees who are polite and friendly

Having employees who are knowledgeable and well-informed

Having customer service people who can deal with my issue without having to refer me to

another personHaving customer service people who know my history based on information I have previously

provided, so I don’t have to repeat myself each time I talk to someone

Having customer service available at convenient times

Being able to access customer service using multiple channels

-

-

--

-

-

--

-

-

-

Global Sample

• In terms of general customer service characteristics, consumers are least satisfied with the amount of time they have to wait before they are attended to (27% satisfied vs. 40% dissatisfied).

• With regard to company representatives, consumers are most satisfied with being able to deal with employees who are polite and friendly, knowledgeable and well-informed. However, the level of satisfaction is significantly lower than the previous year.

11Copyright © 2011 Accenture All Rights Reserved+ /- Where shift of Extremely between 2009 & 2010 is > 5%


The amount of time I have to wait to be served

Having customer service available at convenient times

The amount of time it takes to read and understand information the company sends me

Being able to resolve questions/issues on my own, without speaking to a service agent

Having access to environmentally friendly options

Having employees who are knowledgeable and well-informed

Having employees who are polite and friendly

Having customer service people who can deal with my issue without having to refer me to

another person

Having customer service people who know my history based on information I have previously

provided, so I don’t have to repeat myself each time I talk to someone

The amount of time it takes to completely resolve my issue or problem

Being able to access customer service using multiple channels

Gen

era

l C

hara

cte

risti

cs

Co

mp

an

y R

ep

resen

tati

ves

Global Sample

The majority of consumers cited as most important the amount of time they have to wait to

be served (55%) and the amount of time it takes to completely resolve service issues

(54%)



Consumers‘ assessment of level of importance of each of the 11 characteristics of customer service

Only 21% on average across industries feel their providers deliver tailored experiences

―very well,‖ indicating a one-size-fits-all approach does not work for customer service

Number of consumers who indicate their providers offer a tailored customer service experience

Travel & Tourism

Life Insurance Providers

Consumer Goods Retailers


Manufacturers

Retail Banking / FS Providers

ISP

Cable / Satellite Companies

Landline Phone Companies

Wireless Phone Companies

Gas & Electric Utilities



Global Sample by Industry

Over the next 12 months, most consumers plan to buy the same amount from providers

they do business with

Global Sample

Over the next 12 months, what do you anticipate doing as relates to purchases?

Buy the same amount from the company/ies I do business

with today

Buy more products and services from the

company/ies I do business with today

Buy fewer products and services form the

company/ies I do business with

• The percentage of consumers who intend to purchase more through 2011 as compared with 2010 has increased from 26% to 54%


The Buying Experience and Purchasing Behaviors

The greatest proportion of consumers intend to increase purchases of products and

services from consumer goods retailers, consumer electronics manufacturers and travel

& tourism companies



Gas and

Electric

Utility

Providers

Wireless

Phone

Service

Providers

Landline

Phone

Service

Providers

Cable /

Satellite

Companies

ISP

Retail Banking /

Financial

Services

Providers

Consumer

Electronics

Manufacturers

Consumer

Goods

Retailers

Life

Insurance

Providers

Travel and

Tourism

Companies

Buy fewer

products and

services

20% 23% 29% 28% 23% 23% 22% 15% 29% 24%

Buy the same

amount73% 61% 66% 63% 67% 59% 54% 55% 63% 50%

Buy more

products and

services

17% 28% 19% 21% 27% 28% 39% 44% 18% 41%


Responses by Industry

Where increase or decrease between 2009 & 2010 is > 5%

Among consumers worldwide, those in emerging markets (Mexico, Brazil, Singapore,

China and India) intend to increase their purchases more than consumers in most other

countries




# of

industriesUSA Canada South Africa Belgium France Spain Italy UK Germany

Buy fewer

products

and services

None 70% 70% 55% 60% 59% 46% 46% 61% 59%

One 18% 21% 31% 23% 19% 34% 33% 22% 25%

Two 8% 5% 10% 11% 15% 14% 11% 11% 12%

Three + 4% 4% 4% 6% 6% 7% 9% 6% 5%

Buy the

same

amount

None 13% 8% 20% 9% 10% 13% 11% 11% 12%

One 23% 25% 34% 24% 30% 30% 31% 20% 28%

Two 18% 25% 24% 22% 17% 22% 21% 26% 21%

Three + 47% 42% 22% 46% 42% 35% 36% 44% 39%

Buy more

products

and services

None 63% 63% 33% 52% 69% 44% 42% 55% 54%

One 23% 18% 30% 28% 19% 35% 32% 23% 29%

Two 7% 14% 21% 13% 10% 16% 17% 15% 12%

Three + 7% 5% 16% 7% 3% 5% 9% 7% 6%

* *

Responses by Country


Among consumers worldwide, those in emerging markets (Mexico, Brazil, Singapore,

China and India) intend to increase their purchases more than consumers in most other

countries (continued)



# of

industries Mexico Brazil Australia Singapore Japan China India IrelandBuy fewer

products and

services

None 39% 35% 71% 54% 70% 29% 40% 47%

One 36% 36% 20% 27% 17% 41% 34% 37%

Two 17% 20% 7% 13% 6% 19% 21% 11%

Three + 8% 9% 2% 7% 7% 11% 5% 6%

Buy the same

amountNone 22% 21% 12% 13% 11% 14% 29% 22%

One 37% 34% 40% 36% 22% 46% 36% 34%

Two 20% 25% 19% 21% 15% 22% 21% 19%

Three + 21% 20% 29% 30% 51% 19% 14% 24%

Buy more

products and

services

None 23% 26% 61% 38% 67% 16% 16% 46%

One 35% 33% 26% 34% 18% 41% 41% 31%

Two 23% 25% 10% 18% 11% 25% 22% 17%

Three + 19% 17% 3% 11% 5% 18% 21% 6%

*


Responses by Country


When choosing a new provider, while still having a very high importance, price as a reason

for switching has decreased versus one year ago, along with customer service, product

and convenience


Their

price

Their

customer

service

Their

product

Their

convenience

Their

promotion

They are

based in the

same country

where I live

Little

different-

iation

among

competitors

UK 2010 57% 55% 48% 32% 16% 20% 5%

UK 2009 74% 59% 46% 33% 19% 18% 5%

USA 2010 50% 57% 36% 40% 17% 14% 4%

USA 2009 66% 63% 49% 45% 25% 13% 6%

Australia 2010 56% 60% 45% 44% 17% 16% 7%

Australia 2009 75% 67% 55% 41% 15% 23% 8%

Canada 2010 50% 61% 44% 42% 29% 18% 10%

Canada 2009 70% 66% 52% 47% 30% 17% 6%

Germany 2010 60% 59% 49% 56% 4% 12% 4%

Germany 2009 83% 65% 57% 45% 8% 6% 2%

China 2010 58% 75% 51% 63% 29% 13% 7%

China 2009 80% 81% 57% 70% 22% 17% 16%

France 2010 59% 54% 44% 14% 21% 20% 10%

France 2009 70% 57% 50% 38% 22% 15% 9%

Brazil 2010 58% 52% 48% 44% 36% 12% 11%

Brazil 2009 79% 83% 73% 50% 50% 14% 4%

South Africa 2010 56% 78% 64% 56% 24% 18% 8%

South Africa 2009 78% 83% 72% 63% 27% 16% 7%

India 2010 54% 73% 65% 56% 28% 20% 13%

India 2009 71% 85% 76% 62% 31% 17% 17%

Singapore 2010 69% 72% 53% 55% 49% 23% 13%

Singapore 2009 84% 74% 67% 64% 62% 23% 12%

Belgium 2010 57% 58% 30% 23% 21% 7% 12%

Belgium 2009 77% 50% 58% 35% 36% 11% 6%

Ultimately, what factor(s) made you choose the new service provider (Choose all that apply)?


The price

Their customer service

Their product

Their convenience

Their promotion

Little differen-tiation

among the competitors

Global Sample Results by Country


• The percentage of consumers who identified

price as the reason for selecting a new

provider declined from 75 percent in 2009 to

57 percent in 2010.

The majority of consumers are unwilling to compromise on product quality or customer

service in exchange for lower prices

How much do you agree or disagree with the following statements?

Global Sample by industry

I am willing to accept lower levels of

customer service if it ensures I get

the lowest price


product options if it ensures I get the

lowest price


product quality if it ensures I get the

lowest price

I am willing to accept lower

frequency of communications if it

ensures I get the lowest price

+ -

+ -

• A majority of global

consumers are not willing

to compromise on product

quality (67%), levels of

customer service (54%),

product options (47%), and

frequency of communications

(44%) with companies in

exchange for lower prices.

• This unwillingness to

compromise for lowest price

has increased compared to

2009. Interestingly, there are

still some consumers (5 to

17%) that would accept such

trade-offs.


+ /- Where shift of Extremely between 2009 & 2010 is > 5%


Dealing with employees who do not acknowledge my specific needs and preferences when considering buying

Dealing with employees who are not knowledgeable when I’m considering buying

Having to spend a lot of time (waiting for responses, completing paperwork/online forms, etc.) before being able

to purchase a product or subscribe to a service

Not being able to understand the information (on price, features, etc.) that is provided by companies before

making a buying decision

Not being able to access information or buy a product/service using multiple channels of my choice (for

example, by phone, online, in a store)

Not being able to find information and/or compare offerings before making a buying decision on my own, without

speaking to a (sales) agent

Receiving unsolicited advertising at home for specific products & services via direct mail or telemarketing

Being exposed to news (e.g. corporate scandals, etc.) that damages the overall brand image of a company

from which I want to buy products or services

During the buying experience, consumers are most frustrated with employees who are

not knowledgeable and employees who are disrespectful of a consumer‘s time

Global Sample

Frustrations during marketing and buying experience



More than half of consumers will not or are likely not to consider a provider after a

frustrating experience in the selection phase

Effect of frustrating experiences during the buying process

Global Sample

Dealing with employees who are not knowledgeable when I’m considering buying

Not being able to understand the information (on price, features, etc.) that is provided by

companies before making a buying decision

Dealing with employees who do not acknowledge my specific needs and

preferences when considering buying

Having to spend a lot of time (waiting for responses, completing paperwork/online forms, etc.) before being able to purchase a product or

subscribe to a serviceNot being able to access information or buy a product/service using multiple channels of my

choice (for example, by phone, online, in a store)

Not being able to find information and/or compare offerings before making a buying decision on my own, without speaking to a

(sales) agentReceiving unsolicited advertising at home for specific products & services via direct mail or

telemarketing

Being exposed to news (e.g. corporate scandals,) that damages the overall brand image of a company from

which I want to buy products or services

5

Will not/not likely to consider buying (1 & 2):

57%

57%

56%

54%

50%

48%

48%

45%



I consider shopping around for better deals

It’s too much of a hassle to switch providers

All companies in this industry are the same in terms of offerings and

services

27%

34%

35%

33%

34%

33%

39%

40%

33%

44%

30%

20%

17%

19%

15%

20%

11%

13%

18%

11%

35% 18%

Disagree Agree

25%

37%

27%

28%

27%

32%

55%

63%

28%

61%

42%

26%

30%

29%

27%

28%

8%

7%

28%

8%

47%

30%

34%

33%

28%

34%

11%

11%

33%

12%

20%

31%

22%

26%

29%

27%

50%

51%

26%

53%

Disagree AgreeDisagree Agree

28% 33%38% 24%

One in five consumers feel all companies in an industry are the same. One in four

consumers is discouraged by switching inconvenience and one-third of consumers

considers shopping around for better deals


Travel and Tourism



Retail Banking Providers

Internet Service Providers

Gas and Electric Utility Providers

Consumer Electronics Manufacturers

Cable/Satellite Service Providers

Landline Phone Service Providers

Wireless Phone Service Providers

Global Average



Consumer goods retailers experience the highest rate of complete and partial switching


In the past six to 12 months which of the following have you done in each industry?

“I have stopped doing business with a company and switched to another”

(Complete switch)

“I have stayed with companies I do business with but added another provider”

(Partial Switch)

Travel & Tourism




Retail Banking / Financial Services Providers

ISP





45%

32%

50%

45%

40%

34%

31%

31%

38%

27%

Combined

Switching



I tend to trust comments about companies/brands on social media sites posted by people I know (family, friends, co-workers...)

I tend to trust comments about companies/brands on social media sites posted by people I don’t know

Negative comments posted on social media sites contribute to my consideration of not buying a given product or service

Positive comments posted on social media sites contribute to my consideration of buying a given product or service

Word-of-mouth remains the most used and most important source of information for

consumers and new online technology—particularly social media sites--is trusted by

one-in-four consumers

Portion of consumers that posted negative comments after having a bad customer service experience

Portion of consumers that posted negative comments after having a bad Marketing & Sales experience

3%

41%

55%

60%

72%

81%

77%

79%

3%

26%

39%

39%

62%

64%

72%

74%

3%

19%

31%

39%

64%

66%

67%

74%

3%

32%

46%

48%

66%

71%

74%

76%

Global 2010

Global 2009

Mature Markets

Emerging Markets


Technology

To what extent do you agree with the following statements?

Thinking about any or all of the companies you did business with in the past year , how did you learn about the companies’ products and services?

How important were these information sources or channels to you in deciding to go to the new company? Top two boxes (Important/Very Important)

Posting Negative Comments Online

Global Sample

Consumers largely expect and use multiple channels – both ‗traditional‘ and ‗new/digital‘

channels—to assess providers and their offerings


Usage of online and/or offline channels for assessing providers1

Average number of channels

used

Note: (1) Online Channels include :‟Corporate website‟, Other online sources, Online advertising‟. Offline channels include: „Paid advertising‟, „print advertising‟ and „Direct Mails‟. „Information from known‟ and „On premise‟ channels are not included in this analysis.

• Consumers use on average 4 to 5

channels when prospecting out

of the proposed eight online,

traditional and in-person channels.

• Only one-in-ten uses exclusively

digital/online channels in a

Marketing & Sales context.


Technology

Consumers report that the increased use of technology has largely improved their

awareness of products and services as well as their experience in handling customer

service issues – even more so in emerging markets.


How strongly do you agree or disagree with the following statements?

The increased use of technology supporting marketing and sales practices has improved my experience of becoming aware, considering, selecting and buying a company’s offerings

The increased use of technology in customer service has improved the level of service significantly in the past five years

More than three-quarters (77%) of consumers report the increased use of technology-- such as e-mail advertisements, online banners, web tools to configure/compare offers and online ordering--has

improved their experience assessing providers.

Similarly, two-thirds (66%) indicate the increased use of technology in customer service—with practices such automated phone attendant, live Internet chats and self-service options on a web site--has improved their customer service experience. That number has increased, from 50 percent in 2007 to 53 percent in 2008 and 61 percent in 2009.

Consumers in emerging market countries rate the importance of technology even higher – both for Marketing & Sales as well as for Customer Service - than their counterparts in mature markets


Technology

Only one in four respondents say they trust the companies with which they do business.

By industry, respondents place the most trust in companies in retail banking and the least

trust in landline, internet service providers and gas and utilities providers

Extent to which consumers say their current providers are trustworthy


Travel & Tourism




Manufacturers


ISP





--

-

• On average across industries, about one-in-four (27%) of respondents trust their providers.

• Consumers reported to place more trust in companies from the retail banking industry (34%), and least in companies operating in the gas & utilities sector (29%).

• Consumers reported less trust in companies in the landline phone industry (23%) and internet service providers (24%).



Trust and Loyalty

Loss of trust has increased as a reason selected by consumers for deciding to switch

from consumer electronics manufacturers, consumer goods retailers, travel and tourism

providers and internet service providers

Number of consumers who cited loss of trust as a reason for switching providers.


• When it comes to making the

decision to switch, loss of trust as a

reason selected by consumers has

increased or stayed the same in 8

out of ten industries, most notably

among internet service providers,

consumer goods retailers and travel

and tourism providers.

• Fewer respondents cited loss of trust

as a reason for switching banks and

financial services companies (23

percent in 2009 vs. 18 percent in

2010) and life insurance providers

(19 %in 2009 vs. 13 % in 2010).


Travel & Tourism




Manufacturers


ISP





+

+

+

-

-


+

Trust and Loyalty

Around one-in-three consumers are satisfied with their providers, but less than one-in-four

globally feel very loyal to them and just over one-quarter would recommend their providers

to others


Level of loyalty towards and willingness to recommend current providers

Travel and Tourism




Retail Banking Providers

Internet Service Providers

Cable/Satellite Service Providers

Landline Phone Service Providers

Wireless Phone Service Providers

Gas and Electric Utility Providers

Global average

How satisfied are you with the companies you do business with in each

industry?

Not at

all

Extremely

How loyal do you feel to the companies you do business with in

each industry?

Please indicate the extent to which you will

recommend these companies to others

31%

26%

25%

27%

23%

22%

23%

22%

26%

24%

21%

24%

21%

23%

22%

30%

18%

20%

21%

20%

29%

21%

24%

22%

19%

20%

12%

11%

23%

12%

21%

29%

22%

27%

29%

32%

29%

30%

23%

33%

25% 23% 19% 28%

Not at

all

Extremely Not at

all

Extremely

16%

14%

16%

15%

14%

13%

7%

7%

15%

9%

29%

35%

28%

31%

31%

36%

28%

32%

27%

31%

12% 32%


Trust and Loyalty

Both the participation in and effectiveness of loyalty programs has increased across all

industries in 2010 as compared to 2009, most notably with retailer programs

Participation in companies‘ customer loyalty programs vs. persuasion to remain with the providers that offer them.


2010 2009


Trust and Loyalty

accenture global consumer study 2011

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