BUSINESSNEWS
CUSTOMERS DEFECT TO
COMPETITION – EVEN WHEN
COMPANIES PERFORM WELL
More than half of customers
are likely to defect to a
competitor brand when a
product needs updating
or their contract expires,
according to a new study from
global research consultancy
TNS.
Almost two thirds (60%) of
customers are likely to defect
to another brand when buying
new electronic products; 57%
would replace their car with a
different brand; and 64% would
opt for another manufacturer
when selecting white goods like
a washing machine.
According to TNS’s global
analysis of 40,000 customers,
companies can no longer
ensure loyalty and spend just by
providing a reliable, consistent
service. In fact, many of those
who defected to a competitor
actually felt their current
‘The most
successful
businesses get
smarter about
customer
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provider was performing well.
Companies that fail to address
this gap are wasting millions of
pounds trying to improve their
individual performance in the
eyes of customers, while failing
to understand the risk posed
by other providers, and more
importantly, how attractive
these competitors are to their
customers.
Stefan Schmelcher, Global
Head of Customer Experience
at TNS (pictured) said:
“Given the fierce competition
in many markets, securing
valuable customer relationships
requires a deep understanding
of what drives your customers’
behaviour.
“The most successful businesses
are able to translate what’s best
about their per