Study of 10,000 U.S. Consumers Examines the Effects of Delivering Bad Experiences Across 20 Industries
WABAN, Mass., March 30, 2016 /PRNewswire/ — Temkin Group released new research, What Happens After a Good or Bad Experience, 2016. The report examines the relationship between 10,000 U.S. consumers and almost 315 companies across 20 industries.
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More than 20% of consumers who have interacted with TV service providers and Internet service providers report having a bad experience during the previous six months, the highest levels of any industry. AirTran Airways (28%), Time Warner Cable (27%), Comcast (27%), and HSBC (25%) have the highest levels of consumers reporting bad experiences.
At the other end of the spectrum, less than 5% of consumers report having a bad experience with a retailer or supermarket. Eight companies delivered bad experiences to 2% or fewer of their customers: Michael's, Advance Auto Parts, Whole Foods, Publix, Subway, Vanguard, Trader Joe's, and GameStop.
The research examines the impact of bad experiences on consumer spending across 20 industries. The percentage of revenues that are at risk due to bad experiences are highest for TV service providers (6.8%) and rental cars (6.5%), which less than 2% of revenues are at risk for retailers and supermarkets.
"Bad experiences are very costly for companies," states Bruce Temkin, Managing Partner of Temkin Group. "But when companies respond effectively to a bad experience, they can dramatically shift consumers' spending patterns."
The research shows that companies can increase their revenues when they respond very effectively after a bad experience. When a company has a very poor response to a bad experience, 63% of consumers cut back on their spending. On the other hand, when a company has a very good response after a bad experience, only 24% of consumers cut back on their spending and an even larger number, 30%, increase their spending.
The highest percent of consumers say that appliance makers (47%) and investment firms (46%) have delivered a good response after a bad experience, while less than 20% of consumers feel that way about TV service providers and Internet service providers.
Seventy-six percent of consumers share their experiences after a very bad experience, but only 69% share their very good experiences. About 50% of consumers share their experience directly with their friends, while about 19% share it on Facebook, 13% shared it on a third party rating site like Yelp, and 10% share it on Twitter. Thirty-one percent of consumers give feedback directly to the company after a very bad experience and 24% give feedback after a very good experiences.
This research can be accessed from the blog, Customer Experience Matters®, at ExperienceMatters.wordpress.com or at the Temkin Group's website, www.TemkinGroup.com.
For more information about Temkin Group, visit www.TemkinGroup.com.
About Temkin Group: Temkin Group is widely recognized as a leading customer experience research and consulting firm. Many of the world's largest brands rely on its insights and advice to steer their transformational journeys. Temkin Group combines customer experience thought leadership with a deep understanding of the dynamics of organizations to help accelerate results. Rather than layering on cosmetic changes, Temkin Group helps companies embed practices within their culture by building four critical competencies: Purposeful Leadership, Employee Engagement, Compelling Brand Values, and Customer Connectedness. The firm's ongoing research identifies leading and emerging best practices across a wide range of activities for engaging the hearts and minds of customers, employees, and partners. For more information, contact Bruce Temkin at 617-916-2075 or send an email.
About Bruce Temkin: Bruce Temkin is widely recognized as a customer experience thought leader and is Customer Experience Transformist and Managing Partner of Temkin Group. He is also the author of a very popular blog, Customer Experience Matters (ExperienceMatters.wordpress.com). Prior to forming Temkin Group, he was a VP at Forrester Research for 12 years. Bruce is a highly demanded speaker who consistently receives high marks for his content-rich, entertaining keynote addresses. He is also the co-founder and past chair of the Customer Experience Professionals Association (CXPA.org), a global non-profit organization dedicated to the advancement of customer experience management.
Customer experience matters is a registered trademark of Temkin Group.