Shep Hyken | Human-Centered Change and Innovation

Top Five Reasons Customers Don't Return

GUEST POST from Shep Hyken

Whatever you sell, be it a product or service, your customers expect that it will do what it’s supposed to do. If you sell a car, the car should work. If you sell a service, the outcome should meet expectations. That’s table stakes.

So, let’s assume that whatever your customers are buying from you will meet their expectations. However, that’s not always why the customer buys from you in the first place, let alone comes back to buy more. It’s the customer experience that drives that.

In our 2022 Achieving Customer Amazement research, more than 1,000 American consumers were asked, “How likely would you be to switch companies or leave a brand after experiencing any of the following bad customer service experiences?” They were asked to rate several reasons using a scale that ranged from “not likely” to “very likely.” Here are the top five reasons customers would leave:

1. Rudeness or Apathy From a Company or Brand Employee

This was the No. 1 reason, coming in at 75%. What’s interesting is that in the late 1970s a study was commissioned by the White House Office of Consumer Affairs, and the top reason for customers leaving (over 70%) was the same. It’s hard to believe that the numbers haven’t changed for 40 years, but this continues to be the No. 1 reason customers don’t come back.

2. Inconsistent Information

There is no excuse for inconsistent information. Obviously, this is very frustrating to customers, with 72% saying this would drive them to find someplace else to do business. Have you ever called a company’s customer support number with a question and didn’t like the answer? If you truly believed the answer was incorrect, you may have called back to ask someone else the same question, hoping for a different answer. And it’s amazing how many times you get a different answer.

3. Inability to Connect with Someone From Customer Support

Self-service or digital support is becoming more popular. Customers are learning that it’s often quicker and easier to visit a website, read the frequently asked questions or interact with an AI-fueled chatbot. However, there are times when you want to talk to a human. It should be an easy, seamless transition, but some companies hide behind a wall of digital support and make it difficult for a customer to connect to a live agent. Furthermore, some companies bury their customer support number on their website, making it difficult, if not impossible, to find. This third reason customers leave comes in at 71%, just four percentage points off the No. 1 reason.

4. A Bad Customer Service Experience

I would think this would be at the top of the list, but at 68%, it takes fourth place. A bad customer service experience is exactly that. It’s just bad. But survey participants considered dealing with a rude or apathetic employee worse than an overall bad experience. My interpretation is that you might get a second chance following an overall bad experience. However, if customers are treated with disrespect (rudeness and apathy), it’s more than likely you won’t see them again.

5. Inconsistent Experience

You can’t be great one day, not so great the next day, average another day, etc. Inconsistency erodes confidence. Fifty-nine percent of the customers we surveyed would walk if they didn’t know what to expect. Customers want a consistent and predictable experience. That gives them confidence that they know what to expect every time they do business with you.

Conclusion

As you look at this list, you might think, “I knew that.” Of course, you did. You’re a customer. You don’t want to deal with employees who are rude or apathetic. It bothers you to get inconsistent information, and it’s upsetting when you want to talk with someone from a company but can’t. You get frustrated when you have a bad customer service experience. And you get irritated with an inconsistent experience. Who wouldn’t?

This article originally appeared on Forbes

Image Credit: Shep Hyken

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This is What They Want

Selling to Generation Z

GUEST POST from Shep Hyken

Gen-Z is not your typical generation. By the way, neither was the Millennial generation … or Gen-X, etc. Each new generation has interesting differences, desires, likes and dislikes. Each generation poses its own problems and opportunities, depending on how you view the challenge. A recent report created by Gongos (part of InSites Consulting) shared some interesting information relevant to companies that do business with Gen-Z.

Gongos surveyed more than 1,000 U.S. consumers and compared Gen-Z to older generations. Gen-Z’s were born between 1997 and 2011, and their habits, views and behaviors are quite different than the older Gen-X and Baby Boomers. The oldest Gen-Z’s are about 24 years old, and they are quickly becoming an important consumer group that will change the way brands market and sell. Here are some of the findings, followed by my commentary and additional stats and facts.

Gen-Z Wants Brands to Challenge Social Issues – Forty-three percent of Gen-Z appreciates brands that take a stand, especially in the areas of sustainability, inclusiveness and racial transparency. And they put their money where their mouth is:

69% will pay more if employees and suppliers are treated fairly.
66% will pay more if the brand tries to have a positive impact on society.
61% will pay more if the brands use inclusive practices.
60% will pay more for a business that practices sustainability.

Gen-Z Loves Personalization – For all of the marketers reading this article, note that Gen-Z will pay for personalization—not always with money, but instead with their personal data. They aren’t nearly as protective of their personal data as Gen-X and Baby Boomers. Gen-Z pays more attention to brands that create a personalized experience or allow them to create a custom product. Consider the shoe manufacturer that lets its customers design their own shoes. Or the cosmetic company that allows its customers to create their own formulas. Offer them a personalized experience, and they will go out of their way to do business with you. More stats to consider:

50% pay attention to brands that offer personalization and co-creation.
52% look for brands that understand them.
51% allow brands to create products that reflect their identity.

Gen-Z Fights Injustice Through “Click-Tivism” – Social media has made it easy for anyone to have a megaphone that is heard by the world. Older generations (Boomers) might protest with sit-ins and picket signs. The younger generation has embraced social media as the place to call attention to what is important to them. “Gen-Z is clicking for change.”

29% follow social media accounts on social justice.
26% use social media to voice their opinions.
15% participate in online protests.

Gen-Z Fights for Social Inequality – Gen-Z is, according to the study, the most ethnically diverse generation in history. Diversity and inclusion are not just hot topics in the HR department, but some of the hottest topics for this younger generation.

59% consider racial and ethnic diversity as beneficial for society.
48% consider racism a top global issue.
49% recognize that gender identity can change over time.
48% know someone who prefers to be addressed with gender-neutral pronouns (they, them, their, etc.)

Gen-Z Engages in Metaverse Activities – Many people still don’t understand the metaverse, which is blending the physical and digital worlds we live in. According to the study, “No generation will embrace and shape the metaverse more than Gen-Z.” Eighty-three percent of Gen-Z engages in metaverse activities. They hang out with friends in virtual worlds and spend money on virtual merchandise. They also are looking for brands that are “seamlessly integrating the online and offline worlds.” If you do not understand the opportunities the metaverse is offering Gen-Z (and other generations), you might find yourself playing catch-up with a competitor who does. Some metaverse findings:

48% participate in online gaming.
29% created an avatar to use on the metaverse.
20% have paid for digital products.

There are approximately 65 million Gen-Z’s in the U.S., which accounts for almost 20% of the U.S. population. These are your up-and-coming consumers and financial decision-makers. They have expectations that are quite different than older generations. While many of today’s Gen-Z’s are still very young (as young as 11 years old), don’t think they aren’t making a major impact on companies’ current and future plans. The customer experience will have to change to reflect the values of Gen-Z. Their opinions and habits are going to cross over to older generations, especially with their parents, who support this young generation’s ideals. Are you ready for a new generation’s expectations? If not, it’s not too late to start to change.

This article originally appeared on Forbes

Image Credit: Shep Hyken

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