Service is a primary driver of customer loyalty, Zendesk report reveals

Wednesday 15 January 2020 10:40 CET | News

Half of customers will switch to a competitor after just one bad experience, and 80% will leave after multiple bad experiences, according to Zendesk Customer Experience Trends Report 2020.

The research also reveals that service is a primary driver of customer loyalty, second only to price in determining whether customers feel loyal to a brand. While customer expectations continue to rise, the Zendesk Customer Experience Trends Report 2020 shows that companies aren’t living up to these expectations.

For example, according to the report many of the channels people want for fast, efficient resolution aren't being offered — only a third of companies offer self-service options like knowledge base help centres, and less than a third offer chat, social messaging, in-app messaging, bots or communities.

At the same time, businesses are facing competition from companies that are providing purpose-driven solutions that are in service of the customer, raising the stakes for everyone. Well-established and iconic brands like Disney, Levi Strauss & Co., and the Four Seasons remain one step ahead because they invest in new technologies in continued pursuit of an easy and excellent customer experience.

According to the Zendesk Customer Experience Trends Report 2020, the most successful companies do the following: maintain one seamless conversation; sales and support teams should partner to connect early customer interactions with later ones.

When it comes to data, customers are less concerned about privacy than they were a year ago. In 2019, Zendesk research showed 28% of those 55 and above in the US and 32% in the UK wanted to share as little data as possible.  In 2020nthat number has dropped to 12% in the US and 10% in the UK - a marked decrease in just one year. The Zendesk Customer Experience Trends Report 2020 findings show that customers prefer companies to keep track of their data if it leads to better experiences, with more than 75% of customers wanting the personalisation that comes with better insights.

AI is the future of customer service, and there is still a huge opportunity for companies to start taking advantage of the technology. Zendesk’s report shows that only 37% of customer experience teams are using AI, according to customer experience managers while 43% of UK consumers say that it is helpful for simple issues. High-performing customer experience teams are twice as likely to embrace AI, incorporating the technology across more channels and interactions with customers. 

More companies are realising the value of prioritising the customer experience and forward-thinking companies are bringing in leaders who can understand and champion the customer.

According to Zendesk findings, customer service leaders expect both their customer requests and teams to grow, by 42% and 36% respectively. As companies continue to invest and make the customer experience more of a central focus, it’s critical that they make customer service teams a central part of their company culture and strategy. With the right tools and systems, companies have the resources to set up agents for success and leverage data to make smarter decisions.

The annual report is based on global survey results and the Zendesk Benchmark, an index of product usage data from more than 45,000 global companies using Zendesk and the gold standard of data on how companies use their customer experience solutions.

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Keywords: UK, US, report, commerce, ecommerce, customer experience, data, AI, loyalty, price, Zendesk
Categories: Payments & Commerce
Countries: United Kingdom, United States
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Payments & Commerce

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