Insights from the 2017 Customer Rage Survey
The 2017 Customer Rage Survey highlighted a small increase in problems but a decrease in customer rage. Complaint handling showed improvement, yet there is still room for growth, impacting future sales. The survey methodology, problem experiences, and top customer issues were discussed, shedding light on issues in product/service sectors like Cable/Satellite TV, Computer Services, and Automobile. The survey also noted an increase in customers posting serious problems online, particularly on social networking sites, with variations based on age groups.
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HIGHLIGHTS FROM THE 2017 CUSTOMER RAGE SURVEY: Small Uptick In Problems, Less Rage, Improved Complaint Handling, But Still A Failing Grade Affecting Billions Of Dollars Of Future Sales October 4, 2017 Confidential & Proprietary - Page 1
Survey Conducted By In collaboration with Confidential & Proprietary - Page 2
Methodology Follow-up to 1976 White House Study Beginning in 2003 8th wave of Rage Survey Both land line and cell phone respondents Representative sample (age, gender, income) of US households 1,000 household interviews Confidential & Proprietary - Page 3
PROBLEM EXPERIENCE Confidential & Proprietary - Page 4
Small Uptick In Customer Problem Incidence In 2017 2017 results 2 percentage point increase over 2015 Increase from 54% to 56% Only 32% problem incidence in White House Study Confidential & Proprietary - Page 5
Top Five Customer Problems In 2017 PRODUCT/SERVICE Cable/Satellite TV INCIDENCE 18% 1. Computer Services 13% Telephone (cell, land line) 12% Automobile 9% 2. Retail 6% 1. Internet accounts for 12 percentage points Accounts for 58% of most-serious problems Same order as in 2015 Confidential & Proprietary - Page 6
While Posting On The Web About The Most-Serious Problem Has Increased, It Is Still A Minority Phenomenon y TYPE OF WEBSITE Company 2011 11% 2017 19% Social Networking 19% 23% Social Media 1% 4% Review 4% 9% Only 34% of problem households posted on at least 1 of the above websites Confidential & Proprietary - Page 7
Age Does Have An Impact On Posting In 2017 29% of 18 to 34 year olds posted on social networking web sites about their most serious problem Only 17% of 55+ year olds posted on social networking web sites Still a minority phenomenon Confidential & Proprietary - Page 8
Less Rage, But Negative Emotions Still Unacceptably HIGH In 2017 Good News 10 percentage points less RAGE than in 2015 Drop from 66% to 56% Bad News Other negative emotions were associated with respondents most-serious problems EMOTIONS Frustration INCIDENCE 91% Disappointment 84% Anger 62% Surprise 51% Confidential & Proprietary - Page 9
CORPORATE COMPLAINT- HANDLING PRACTICES Confidential & Proprietary - Page 10
Improved Complaint-handling Practices: But Still A FAILING GRADE METRIC 2015 2017 IMPROVEMENT 1st Contact Resolution 14% 25% +11% Got Something 37% 49% +12% 1. Top 2 Box Satisfaction 17% 21% +4% 1. 23% complainant satisfaction for 1976 White House Study Confidential & Proprietary - Page 11
In 2017, Telephone Is Still The Primary Channel For Complaining By Nearly A 6 To 1 Margin Over the Internet PRIMARY CHANNEL INCIDENCE Telephone 70% 1. Internet 12% 1. Less than 4 percentage points of these problem households named websites as their primary channel. Confidential & Proprietary - Page 12
In 2017, Even The Young Prefer The Telephone PRIMARY CHANNEL AGE TELEPHONE INTERNET 18 34 60% 18% 55+ 78% 8% DON T FORCE COMPLAINANTS TO USE CHANNELS THEY DON T WANT TO USE Confidential & Proprietary - Page 13
In 2017, Complainants Got BUPKIS Remedy To be treated with dignity An assurance that my problem would not be repeated My product repaired/service fixed To be talked to in everyday language; not scripted response Offending company put itself in my shoes An explanation of why the problem occurred A thank you for my business An apology My money back Just to express my anger/tell my side of the story A free product or service in the future Financial compensation for my lost time, inconvenience or injury Revenge % Wanted 87% 79% 76% 76% 71% 68% 64% 60% 54% 49% 38% % Got 37% 18% 29% 34% 18% 25% 33% 31% 22% 42% 10% 1 38% 9% 19% 2% Note: Shading indicates a non-monetary remedy. Confidential & Proprietary - Page 14
SO WHAT Confidential & Proprietary - Page 15
Theres No Free Lunch Anymore White House Study found that there was a brand loyalty UPLIFT over non-complainants even when complainants were NOT satisfied (+9%) This is the basis for expansion of corporate complaint solicitation practices In 2000 s, Rage Surveys report a loss of brand loyalty for dissatisfied complainants (-10% to -12%) Given today s low complainant satisfaction, most companies earn a NEGATIVE ROI on complaint- handling Confidential & Proprietary - Page 16
We Live In A Top Box World in 2017 % Satisfaction With Action Taken (% Complainants) Repurchase Intention 68% SATISFIED (21%) 57%-point drop MOLLIFIED (39%) 11% DISSATISFIED (40%) 3% Confidential & Proprietary - Page 17
Commonly Used Telephone Complaint- handling Practices That People HATE Examples of practices that scored less than 2.5 on a 0 10 point scale where 0 was would significantly decrease your satisfaction 1. Misuse of automated telephone technology e.g., no option to talk to a live person (1.19) Try to sell you something (1.58) Must repeat info. already given (2.15) Talking too fast (2.38)/agent accents (1.98) Outsourcing; esp. outside the US (2.01) 1. 2006 CCMC Study Confidential & Proprietary - Page 18
Although In 2017 Posting On The Web Is Not The Primary Complaint-handling Channel, It Spreads A Massive Amount Of Negative Word Of Mouth (WOM) AVERAGE NO. OF PEOPLE REACHED TYPE OF WOM Traditional WOM 12 Social Networking Web WOM 825 Confidential & Proprietary - Page 19
A Spoonful Of Sugar Helps The Medicine Go Down In 2004 2017 1. % SATISFIED WITH ACTION TAKEN 41% REMEDIES COMPLAINANTS GOT Only monetary 2. 3. 4. Only non-monetary 23% Both monetary and non-monetary 73% 1. A comparable question was not asked in the initial wave (2003) of the Customer Rage Surveys. 2. Top 3 boxes 3. Monetary remedies include product repaired/service fixed, money back, free product/service in future, or compensation for damages 4. Non-monetary remedies include treated with dignity, agent didn t use scripted response, assurance problem would not be repeated an explanation why the problem occurred, a thank you for patronage, offending company showed empathy to complainant s concerns, opportunity to vent, and an apology Confidential & Proprietary - Page 20
Vital Statistics: 2017 Survey Findings Extrapolated To The Nation s Population 1. Number of households experiencing at least one problem during past 12 months Number of households experiencing RAGE Number of households posting information about their most serious problem on at least one website Revenue at risk to business 62,720,000 2. 35,750,400 3. 21,324,800 4. $313,286,400,000 1. Statistics apply to ONLY most serious problem during the past 12 months 2. Assuming 112,000,000 total US households 3. Based on extremely and very upset respondents 4. The mean cost of products/services for most serious problem multiplied by the number of households experiencing problems Confidential & Proprietary - Page 21
A Few Final Thoughts COMPANIES ARE DOING ALL THE RIGHT THINGS, BUT THE WRONG WAY Call centers Satisfaction surveys Monetary remedies Use of the web DO IT RIGHT, OR DON T DO IT Confidential & Proprietary - Page 22
For more information about the 2017 Customer Rage Survey, please contact: Scott M. Broetzmann President & CEO Customer Care Measurement & Consulting 2121 Eisenhower Ave., Ste. 501 Alexandria, Virginia 22314 703.823.9531 scott@customercaremc.com www.customercaremc.com Confidential & Proprietary - Page 23
