Customer retention dropped by 7% in 2016 compared to one year previously, a study from Verint Systems shows.
This research was commissioned by Verint from June 23 to July 20, 2016 in association with Opinium Research. Interviews were conducted among 24,001 consumers in Australia, Brazil, India, France, Germany, Japan, Mexico, Netherlands, New Zealand, South Africa, United Kingdom and United States.
Results show that consumers who prefer to do business through digital channels are more likely to swap providers than those that engage with businesses through human touch interactions, such as those that take place by phone via the contact center or in-store.
Across all sectors, 57% of consumers have been with their service providers for more than three years. Banks led in terms of customer retention, with 73% of consumers reporting they have been with their provider for more than three years, whereas only 8% said they have been with their bank for less than a year.
Mobile operators ranked second best, with 63% of consumers remaining with their provider for more than three years.
Japanese companies had the highest retention rates of all countries surveyed—an average of 64% of consumers have been with their providers for more than three years.
French and American companies also fared well, with 60% of French consumers and 55% of American consumers staying with their providers for more than three years.
The study also shows a clear link between communication channel preferences and retention. Consumers who prefer to engage with organizations digitally are more prone to switching providers.