Accenture research reveals revenue at play in a ‘switching economy’
Despite having more data and insights into consumer desires and preferences, companies in the U.S. have fallen short of improving customer satisfaction or reversing rising switching rates among their customers.
As a result, there is some $1.3 trillion of revenue at play in the U.S. market represented by what Accenture calls the “switching economy,” according to new Accenture research.
Accenture revealed more than half—51 percent—of U.S. consumers switched service providers in the past year due to poor customer service experiences, up five percent from 2012. Switching rates were highest among retailers, cable and satellite providers and retail banks—making companies in these sectors the most vulnerable, but also giving them potentially the most to gain.
Accenture’s analysis of consumer spending forecasts and switching rates revealed by the survey shows that $1.3 trillion of revenue is being transferred between companies in the U.S., forming a sizeable “switching economy.”
Against the high percentage of customers reporting they had switched providers in the last year, 81 percent said that the company could have done something to prevent them from switching. And, while the survey showed that price still plays a role in the choice of provider, the customer experience is equally important.
“Changing customer behaviors in the digital marketplace and low levels of customer satisfaction are fueling a switching economy that presents opportunities as well as threats. But too many companies are playing not to lose instead of playing to win in this switching economy,” says Robert Wollan, Global Managing Director, Accenture Sales & Customer Services.
“Growth is harder to come by in many sectors but the switching economy presents a source of new, sustainable, profitable growth for companies that are playing to win and gain market share. To win requires an aggressive approach that goes beyond implementing technology to creating genuinely engaging customer experiences that today’s nonstop customers are seeking but obviously not finding with their current providers.”
The findings are published along with the ninth annual Accenture Global Consumer Pulse Survey, which measured the experiences of 12,867 customers in 32 countries and across 10 industries. The survey included 1,256 U.S. customers.