Report: Most consumers abandon a brand after 3 bad experiences

Dive Brief:

Brands have a lot to lose when they don't meet their customer's expectations. About 73% of consumers will ghost a brand after three or fewer negative customer service experiences, according to a recent Coveo report emailed to Retail Dive.
Nearly half of customers rarely, if ever, complain directly to the company (44%), which means companies may be losing revenue they weren't aware of, the report found.
In the survey of 1,988 consumers, 44% of respondents said they would abandon a brand because they couldn't find certain information, and 23% said they would ditch a brand for receiving conflicting information, per the report.

Dive Insight:

In a constantly evolving retail landscape, anticipating consumer needs is the key to retention. Coveo's survey illustrates how quickly customers abandon brands when they don't feel taken care of.

Achieving customer satisfaction won't come easy, though. The report indicates that every consumer touchpoint, whether it be online or offline, should be seamless. However, the needs and expectations of consumers can vary based on their age.

The report shows that among Gen Z consumers, 50% will abandon a brand if they can't access some pieces of information themselves. Meanwhile, 39% of consumers in the silent generation and 40% of baby boomers opt to speak to an actual person, the report said.

Though brands that can anticipate customer needs have a competitive advantage over other companies, only a few brands can do so and respond effectively, according to a Forrester survey from last month.

AI and data collection methods may be a solution to making the shopping experience more personalized, but a study from Generali Global Assistance last November indicates that two-thirds of consumers were concerned about cybersecurity risks during the holiday shopping season.

When done correctly, brands can use customer service as a strategy to drive consumer growth. A little more than half, or 53%, of consumers are more likely to spread the word to family and friends about their positive interaction with brands, per the Coveo report.

For brands, "a website's role can be far more significant than just boosting a customer's satisfaction score," the report stated. "By considering service and support throughout the customer experience, brands can create customer loyalty, repeat business, and even word of mouth referrals — and breathe life into their subscription models."