As Which? Magazine reveal their findings on broadband customer experience for 2016, Premier CX decided to conduct our own research into the estimated cost of a poor customer experience on internet service providers. Based on quarterly figures from October to December 2016, we've devised a reasonably conservative equation to illustrate the impact that a poor customer experience can have on the bottom line.
The 'customer mindset'
In January 2015, Ofcom commissioned Futuresight to conduct a report on The Consumer Switching Experience. The report revealed that the salient reason for customers looking to switch internet and broadband provider was due to a poor service or customer experience. Switching supplier was considered to be a more reactive process, rather than a proactive process. The Futuresight report found that consumers typically, in the first instance sought to empower themselves with more knowledge, to put themselves in a position of power over their existing supplier. They felt that if they were more ‘tech savvy’ they could be more confident that they were getting a better deal or renegotiate their position. With the majority of customers, seemingly more willing to avoid the hassle of switching provider, this gives the current supplier a unique ‘second chance’ at revising their relationship with their customer.
The 2015 Futuresight report followed up on the number of individuals that completed on switching internet and broadband supplier. The report detailed that 31% of customers completed their switch to a new broadband and internet supplier. Those that didn’t complete on that occasion were more likely to abandon or defer their decision due to time or effort reasons. This means that, while their concerns remain unaddressed, they may in future decide to reignite their interest to switch provider.
