Digital-only approach may alienate customers: Survey

The cost of customers switching loyalties due to poor service is $412 billion as Indian customers prefer human contact when shopping.

Fifty-four per cent of Indian consumers prefer dealing with human beings over digital channels to solve customer services issues, and get advice (70 per cent), according to new research from Accenture.

Another 63 per cent of consumers say that they are even willing to pay a higher price for goods and services if it ensures a better level of service.

The report found that 88 per cent of consumers have switched providers in the past year due to poor customer service, with internet service providers, retailers and banks being the worst offenders.

“Companies have lost sight of the importance of human interaction and often make it too difficult for consumers to get the right level of help and service that they need,” said Raghuram Devara-konda, managing director, advanced customer strategy, Accenture Strategy.

“Companies wrongly assume that their digital-only customers are their most profitable, and that customer service is a cost. Consequently they over-invest in digital technologies and channels and lose their most profitable customers — multi-channel customers — who want experiences that cover both digital and traditional channels.”

Other highlights of the Accenture report were: Fifity-one per cent agree that in-store service is the best channel for getting a tailored experience, and 49 per cent say they are more willing to be sold new or upgraded products when receiving a face-to-face service compared to online.

Another 44 per cent say they would rather go to a store first than use digital channels to get advice on the best products and services.

Raghuram Devarakonda added, “Companies abandon the human connection at their own risk and are facing the need to rebuild it to deliver the varied and tailored outcomes that customers demand.”