Studies carried out on consumer behavior in different countries show us the need to improve communication between companies and consumers.
Needs not met by the market
| Who | The consumer: Is defined as any person who has had or may have interaction with a company/institution, with their employees or products and/or services and have something to communicate to them. |
| Needs | 1. Consumers want to be heard • 68 % of consumers who stop using a product or service is due to the attitude of the staff towards them. • A consumer who has had a negative experience with a company will share it with around 8 and 16 friends on average. |
| 2. Consumers demand empathy. It is very difficult for a company to get a real customer perspective. Proof of this is the following study that shows the reasons why the consumer stopped using a product or service and compares them with the beliefs that managers have regarding the reasons why the consumer stopped using it. |
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| Consumer’s reasons 74% Quality of customer service 32% Quality of the product or service 25% Excessive price Manager’s beliefs 22% Quality of customer service 36% Changes in consumer’s needs 49% Reasons related to price |
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| 3. Consumers want to share their feedback easily • A study in England on consumer complaints shows that 23% of those who had a problem did nothing about it. The main reasons were: – 43% It won’t be worth it – 22% I don’t know how to complain – 20% I don’t have time to complain |
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| 4. Consumers want communication to be effective • The study shows that most complaints are not solved correctly: 26% very dissatisfied, 54% did not receive an answer and 20% had unresolved problems. |
Demands not met by the market
| Who | The company: those businesses seeking to increase sales by improving customer relations. |
| Needs | 1. Companies want satisfied and loyal customers • Loyal customers are less price-sensitive and are the main promoters of the company’s products and services. • Harvard’s Business Review article “one number you need to grow” states that there is a direct correlation between the net number of “promoters” of the company and the company’s annual growth. • It costs between 5 and 6 times more to acquire a new customer than retaining an existing one (White House Office of Consumer Affairs). |
| 2.Companies need to manage communication with customers • A survey carried out by RightNow states that 92% of consumers who had a negative experience with the company would be willing to return if: – They receive a formal apology from a superior – They receive a promotional discount – They receive proof of real interest from the organisation in solving the issue |
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| 3. Companies need to continuously monitor word-of-mouth and their reputation • 79% of consumers who have had a negative experience with the company will share it with other people. • 97% of consumers prefer word-of-mouth for sharing their experiences. |
1. There is a necesity for new feedback channels
This situation justifies what we are bulding, a new communication channel that allows consumers to communicate their experiences in a personalized, fast and effective way to managers and owners of the business.
2. There is a great potential for improvement in the Feedback industry
If you have any question, please write us at [email protected].
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The EasyFeedback team.