TOTE-M Consumer Research Report on Loyalty, (Potential) Churn and Testimonials 2009.pdf

TOTE-M Consumer Research Report on Loyalty, (Potential) Churn and Testimonials 2009

June 2009© TOTE-M 1994-2009

1Financial Services, Consumer Electronics and Telecom Operators

Report on Loyalty, (Potential)

Churn and Testimonials 2009

TOTE-M Consumer Research

TOTE-MVan Diemenstraat 3141013 CR Amsterdam, the Netherlandst +3120 420 77 80e [email protected]

Index

Introduction 3

The use of Testimonials 11

Financial Services 15

Consumer Electronics 31

Telecom Operators 47

Conclusions & Recommendations 63

Copyright © 1994-2009 TOTE-M 2


June 2009© TOTE-M 1994-2009


Introduction


Report on Loyalty, (Potential) Churn

and Testimonials 2009

About TOTE-M

An independent management consulting firm in

Customer Management founded in 1994

40 consultants, offices in the Netherlands and Belgium

Partners: G-CEM, Smith+co, MarketResponse

50% owner of ?Next! Coaches

The number one partner for designing and implementing

personal, memorable and enduring customer

interactions

Our clients recommend us because our consultants are

competent, independent and involved: NPS +31%

Well known for our results, publications, research,

masterclasses, DOC and jury member of CRM Awards,

PON/OM Outsource Awards, Global CEM Awards


Intr

od

uctio

n


June 2009© TOTE-M 1994-2009


Our mission and vision

Our mission is to create, facilitate and secure valuable

encounters. Success of our clients is central in reaching

this goal

Our vision:

The future belongs to organizations that are able to create

valuable and authentic encounters

They have impassioned customers, employees and

shareholders

Valuable encounters are personal, memorable and

enduring. The secret is the ‘click’

Connecting the customer and the organization is

fundamental for each valuable encounter


Intr

od

uctio

n

Our brand values

Personal

From contact to relationship (CRM)

Know your most important

customers

Memorable

From need to experience (CEM)

Captivate your most important

customers

Enduring

From moment to lifecycle (CLM)

Bind your most important customers


Gratify

Satisfy

Neutral

Bad

Horrible

PPGPain –

Pleasur

e Gap

Problems

Use

Orientation

PurchaseNew needs

Intr

od

uctio

n


June 2009© TOTE-M 1994-2009


About the research

This survey was conducted by MarketResponse among a Dutch nationwide weighted sample (n=1.523). The minimum age of the respondents was 16.

The survey was conducted in accordance with the European research guidelines (Esomar), which state that anonymity must be guaranteed and that personal information may not be passed on to third parties.

The survey was weighted by: Sex

Age

Household size

Education

Internet usage

The research focuses on three branches:

Financial Services: retail banking sector

Consumer Electronics: multimedia product vendors

Telecom Operators: (mobile) telecom, cable and internet service providers


Intr

od

uctio

n

Terminology

Churn:the number of individuals or items moving out of a business over a specific period of time

Loyalty: the number of individuals staying at a business over a specific period of time

Testimonial:a written or spoken statement about the virtue of some product, service or brand

First time right: measure for the due date flawless delivery of a product or service in that specific branche


Intr

od

uctio

n


June 2009© TOTE-M 1994-2009


Net Promoter Score (NPS)

The NPS (Reichheld, 2003) is frequently used to gain insight into customer loyalty

The NPS method measures customer loyalty by:

Recommending seems to be obligation-free, but in fact, it is not. Recommenders put their reputations at stake.


Asking ‘Would you recommend company X to your friends, colleagues and

relatives?’

Scoring the answers on a 11-point scale (0 = absolutely not; 10 = yes,

absolutely)

Calculating the net score by subtracting the number of 0 to 6 scores (the

detractors) from the number of 9 and 10 scores (the promoters)

Detractors Passives Promoters

Intr

od

uctio

n

Customer life cycle

This report is based on the TOTE-M customer life cycle model. This

model sequentially describes each step from the start to the

extension of the customer relationship and/or churn. This research

focuses on loyalty, (potential) churn and the use of testimonials

during orientation and (re)purchasing covering all phases.


Orientation

Purchase

Use

New needs

Problems

Intr

od

uctio

n


June 2009© TOTE-M 1994-2009


The use of testimonials




Only a fraction of testimonial users actually write a

testimonial


45%

55%

Testimonial usage

66%

45%

6%

0% 20% 40% 60% 80%

Reads testimonials

Gives ratings

Writes testimonials

UsersNon-users

Te

stim

on

ials


June 2009© TOTE-M 1994-2009


51%

45%

34%

15%

0%

10%

20%

30%

40%

50%

60%

Consumer electronics Holidays Films, books & music Financial products & services

Testimonials about consumer electronics and

holidays are most popular


% of respondents who stated that they had recently read testimonials about:

Te

stim

on

ials


Testimonials: use, credibility, effect

More than 30% of all testimonial users make a buying

decision based on testimonials

Testimonials influence the higher educated almost twice as much

in their buying decision (44% vs 25%)

Interest driven testimonial visitors (browsers) have almost the

same sales conversion (e.g. 38%) as visitors who use

testimonials for purchase orientation (seekers) (44%)

Most popular sites: comparison sites, consumer organization

sites and online communities (telecom)

Lower educated people give more online testimonies than

higher educated (24% vs 20%), but are more sceptical about

the independence of testimonials. They think that most

testimonials are written by manufacturers (56% vs 40%).

Te

stim

on

ials


June 2009© TOTE-M 1994-2009


Financial Services




Main drivers of customer loyalty are:

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%First time right

Customer service

Positive experiences

Product features (e.g. the interest rate)

Company image

Company PR

Involvement with company

Brand experience

Company authority

Personal recommendations

Offer to new customers

Web testimonials


90% of customers

were loyal to their

financial service

provider

Fin

an

cia

l Se

rvic

es

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


6%

41%53%

PromotersPassivesDetractors

Customers do not recommend their

financial service providers: NPS = -47%


Fin

an

cia

l Se

rvic

es

Researched

brands include:

Postbank

Rabobank

ING

ABN AMRO

RBS

SNS

Fortis

AEGON

DSB

Orientation

Purchase

Use

New needs

Problems

Main drivers of potential churn are:

0%

10%

20%

30%

40%

50%

60%

70%

Complaints


Customer service

First time right

Company PR

Company image

Recommendations


Brand experience

Welcome offer for new customers


Fin

an

cia

l Se

rvic

es

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


Potentially churning customers verify many

characteristics:


80%

78%

76%

76%

76%

74%

73%

69%

62%

61%

58%

57%

0% 10% 20% 30% 40% 50% 60% 70% 80%


First time right

Customer service

Previous experiences with the company

Complaints


Company PR

Company image

Company authority

Brand experience

Involvement with the company


Fin

an

cia

l Se

rvic

es

Orientation

Purchase

Use

New needs

Problems

Customers get

their information

from all sources,

but prefer the

internet. Each

source has it’s

own goals

The most frequently quoted sources of

information when potentially churning are

internet and personal recommendations

0%

5%

10%

15%

20%

25%

30%

35%

40%

Company authority

Company PR

Customer service

First time right

Product features

Price

Company image


Brand experience


Other users' complaints

Offer to new customers

Television

Print

Internet


In-Store - face to face


Fin

an

cia

l Se

rvic

es

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


Both usage and perceived reliability of online

communities are low

0%

20%

40%

60%

80%

100%

Consumer organization sites

Comparison sites

Company sites

Online communities

Use Reliability


Consumer

organization sites

are deemed very

reliable but

comparison sites

and company

sites are used as

well

Fin

an

cia

l Se

rvic

es

Orientation

Purchase

Use

New needs

Problems

I use testimonials:

78%

75%

75%

72%

65%

63%

61%

60%

42%

40%

39%

34%

21%

5%

0% 20% 40% 60% 80%

to find information about product quality

to find the best product offer

before I purchase the product

to verify my preference

to find price information

to keep up to date

to get new ideas

to get more information about a purchased product

to get more information about after-sales service

when there are problems after product purchase

during product purchase

to base my product choice on

after product purchase

to get in touch with other users


Fin

an

cia

l Se

rvic

es

Only 15% of testimonial

users read testimonials

about financial services

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


Main drivers of testimonial reliability are:


85%

76%

71%

67%

59%

58%

56%

41%

34%

33%

31%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

actuality

Independency

positive vs. negative reviews

average review score

length and detail of testimonial

# of reviews

language spelling

site look and feel

how I got there

identification with author

know who the author is

Fin

an

cia

l Se

rvic

es

Orientation

Purchase

Use

New needs

Problems

Cost of change prevents switching between

financial services. Therefore churn ratio is

low (10%) and mostly related to savings accounts


35%

9%

7%

6%

6%

6%

4%

4%

3%

0% 10% 20% 30% 40%

Interest rate

Other users'complaints


Service

Company PR


Personal Recommendations

Brand experience

No choice

Churned

customers

are more

price sensitive than

loyal

customers

Fin

an

cia

l Se

rvic

es

Postbank (19%),

Rabobank (11%) and

ABN AMRO (10%)

have the highest churn rates

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


Customers that churned are deal-sensitive


42%

28%

12%

19%

0% 10% 20% 30% 40% 50%

I switch whenever I can get a better offer for the same price

I switch only if conditions get really bad

I switch based on price only

None of the above applies to me

Spreading the

word:30% of churned

customers share

their experience

Fin

an

cia

l Se

rvic

es

Orientation

Purchase

Use

New needs

Problems

59%

16%

15%

14%

12%

12%

11%

10%

9%

9%

2%

0% 10%20%30%40%50%60%70%

Interest rate

Company image



First time right

Brand experience

Company PR


Customer service

Welcome offer

Positive web testimonials

New customers were strongly attracted by the

interest rate (savings account)


Fin

an

cia

l Se

rvic

es

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


New customers mainly made their decision

based on:


Fin

an

cia

l Se

rvic

es

56%

42%

42%

42%

42%

36%

36%

35%

34%

29%

28%

26%

0% 10% 20% 30% 40% 50% 60%


Company PR

Company image

Customer service

First time right


Company authority

Brand experience




Complaints of other users

Orientation

Purchase

Use

New needs

Problems

0%

5%

10%

15%

20%

25%

30%

35%

40%

Company authority

Company PR

Customer service

Reliability of service

Product features

Price

Company image


Brand experience


Users' complaints

Welcome offer

Television

Print

Internet

Personal

In-Store

The Internet is mostly

used for finding price

and product info

Internet was the channel most often

used to verify information to support the new

choice, especially on price and product features


Fin

an

cia

l Se

rvic

es

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


12%

59%

29%


Recently switched customers are slightly

better promoters than loyal customers:

NPS = -17%


Fin

an

cia

l Se

rvic

es

Orientation

Purchase

Use

New needs

Problems

Loyalty and churn have different drivers


Churn drivers

Fin

an

cia

l Se

rvic

es

89%

88%

87%

75%

62%

59%

55%

52%

50%

47%

29%

24%

12%

15%

59%

16%

11%

10%

12%

9%

14%

9%

2%

-26%

-37%

-40%

-15%

-19%

-12%

-11%

-14%

-9%

-63%

-6%

-35%

-6%

-6%

-7%

-4%

-4%

-6%

-9%

-4%

First time right

Customer service


Product features

Company image

Company PR


Brand experience

Company authority

Personal recommendation

Welcome offer to new customers

Webtestimonials

Complaints

Forced switch

Potential churn drivers Loyalty drivers

New choice drivers


June 2009© TOTE-M 1994-2009


Consumer Electronics





0%

10%

20%

30%

40%

50%

60%

70%

80%

90%Customer service


Price

First time right

Product features


Company imageCompany PR

Welcome offer to new consumers

Brand experience


Company authority

Web testimonials


75% of customers

reported that they are

loyal to their consumer

electronics brands

Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


4%

57%

39%



consumer electronics brand: NPS = -35%


Con

su

me

rE

lectr

on

ics

Researched

brands include:

Nokia

Philips

Samsung

Sony

JVC

LG

Siemens

Dell

Compaq

HP

Panasonic

Apple

Orientation

Purchase

Use

New needs

Problems


0%

10%

20%

30%

40%

50%

60%Complaints

Product features

Customer service

First time right


Price

Company PR

Company image

Brand experience

Welcome offer to new consumers


Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009



characteristics:


84%

84%

81%

80%

79%

76%

74%

71%

65%

64%

59%

56%

55%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Product features

Price

Customer service

First time right



Previous experiences


Company image

Company PR

Company authority

Brand experience


Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems

Customers considering churn

mainly base their decisions on online

information and the in-store service they receive


0%

5%

10%

15%

20%

25%

30%

35%Company authority

Company PR

Customer service


Product features

Price

Company image


Brand experience


Users' complaints

Welcome offer

Television

Print

Internet

Personal recommandations

In-Store

Consumers use many

sources, mainly

internet,

recommendations and

in-store are very

important.

Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


Comparison

sites are

widely used,

but consumer

sites are

perceived as

more reliable

0%

20%

40%

60%

80%

100%

Consumer organization sites

Comparison sites

Company sitesOnline communities

Video sites

Use Reliability (very reliable)

Both usage and perceived reliability of online

communities are low.

Comparison sites are most frequently used


Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems

I use testimonials:

92%

90%

75%

74%

71%

68%

59%

54%

45%

44%

43%

43%

22%

7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


before I purchase the product

to find the best product offer



to get more information about a purchased product

to get new ideas



to keep up to date

to get more information about after-sales service

when there are problems after product purchase




Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009




78%

75%

71%

66%

65%

61%

55%

33%

32%

31%

29%

0% 10% 20% 30% 40% 50% 60% 70% 80%

actuality

independence

# of reviews



language / spelling



look and feel of the site

how I got there


Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems

Complaints play

a far smaller

role in actual

churn than in

potential churn

Actual churn is mainly driven by obsolete

product features


66%

14%

14%

9%

7%

4%

3%

3%

3%

3%

0% 20% 40% 60%

Product features

Price of last choice

Complaints


Customer service

Company image

Lack of involvement with the company


Brand experience

Provided by employer

Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


Customers that churned are deal-sensitive.

They want a better product for the same price.


45%

21%

14%

20%

0% 10% 20% 30% 40% 50%



My switching is based on price alone

None of the above applies to me

Spreading the

word:40% of churned

customers share

their experience

Young people share their

experiences with family and friends

during switches. Company image

also plays a important role in

switching.

Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems

New customers were mainly attracted by

product features and price


Low-income consumers rely

more on friends and relatives

than do consumers with

a higher income

(27% vs. 6 %)

Con

su

me

rE

lectr

on

ics

56%

40%

21%

20%

19%

14%

12%

11%

8%

8%

0% 20% 40% 60%

Product features

Price


Welcome offer


Company image

Web testimonials

Customer service

First time right

Brand experience

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009



based on:


79%

78%

59%

52%

52%

51%

51%

48%

47%

40%

40%

36%

33%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Product features

Price



Company image

First time right

Customer service

Brand experience


Company PR

Company authority



Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems

Internet and In-store were the primary sources

of information for new customers

0%

5%

10%

15%

20%

25%

30%

35%

Company authority

Company PR

Customer service


Product features

Price

Company image


Brand experience


Users' complaints

Welcome offer

Television

Print

Internet

Personal

In-StoreCopyright © 1994-2009 TOTE-M 44

Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


17%

67%

16%


Recently switched customers are better

promoters than loyal customers and have a

positive NPS: NPS = 1%


Con

su

me

rE

lectr

on

ics

Orientation

Purchase

Use

New needs

Problems



Con

su

me

rE

lectr

on

ics

88%

85%

88%

86%

83%

58%

47%

49%

43%

46%

36%

40%

31%

11%

8%

19%

40%

56%

21%

14%

8%

20%

12%

-43%

-23%

20%

-44%

-20%

-12%

-10%

-10%

-10%

-54%

-7%

-14%

-66%

-9%

-4%

-3%

-3%

-3%

-14%

-3%

Customer service

First time right


Price

Product features


Company PR

Company image

Brand experience

Welcome offer

Company authority


Web testimonials

Complaints

Forced switch

Churn drivers


New choice drivers


June 2009© TOTE-M 1994-2009


Telecom Operators




90% of

customers

stated that they

are loyal to their

telecom

operators


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Customer service

First time right


Price

Product features


Company PRCompany image

Brand experience


Company authority


Web testimonials


Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


5%

61%

34%



telecom operators: NPS = -29%


Researched

brands include:

KPN

T-Mobile

TELE2

Ziggo

Vodafone

Pretium

XS4ALL

Planet

Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems



Complaint

handling is

critical to avoid

churn

0%

10%

20%

30%

40%

50%

60%Complaints

Price

Customer service


Outdated productfeatures


Company PR

Annoyed by welcome offer for new customers

Company image

Changing employer

Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009



characteristics:


79%

78%

78%

77%

74%

70%

64%

61%

60%

56%

52%

44%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Price

Customer service

Product features


Users' complaints


Company PR

Company image

Welcome offer

Company authority

Brand experience


Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

Company authority

Company PR

Customer service


Product features

Price

Company image


Brand experience


Users' complaints

Welcome offer

Television

Print

Internet

Personal

In-Store

Main sources of information for potential

churners are internet and personal

recommendations


Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


Comparison sites are preferred although

consumer organization sites are perceived

as more reliable

0%

20%

40%

60%

80%

100%

Consumer organization

sites

Comparison sites

Company sites

Online communities

Video sites

Use Reliability (very reliable)


The usage of online communities and

consumer organization sites

is lagging behind their deemed

reliability

Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems

I use testimonials:

82%

79%

76%

73%

69%

69%

62%

56%

53%

52%

44%

31%

29%

11%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


before I purchase a product


to find the best offer


to get more information about a purchased service

to get new ideas

to keep up to date

whenever there are problems after product purchase


to get more information about after sales service





Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009




71%

71%

67%

66%

63%

60%

52%

50%

40%

30%

23%

0% 10% 20% 30% 40% 50% 60% 70% 80%

actuality

independence


# of reviews


language / spelling



how I got there

site look and feel


Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems

Actual churn is mainly driven by price,

complaints and product features:


39%

22%

20%

10%

10%

9%

8%

6%

5%

0% 10% 20% 30% 40%

Price of former provider

Complaints

Outdated product features

Forced change (e.g. move)

Friends Recommendations

involvement with company

Customer service

Company image

Annoyed by welcome offer

Churned

customers are

more price sensitive than

loyal customers

Loyal young people are more

influenced by friends than by

older people when leaving their

providers (30% vs 9 %)

42% of churn

is related to

KPN

Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009


More than

50% of the

churned

customers

share their

experience

41%

29%

20%

10%

0% 10% 20% 30% 40% 50%



My switching is based on price alone

None of the above apply to me

Customers that churned are deal-sensitive


Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems

59%

16%

15%

14%

12%

12%

11%

10%

9%

9%

0% 10% 20% 30% 40% 50% 60% 70%

Price

Product features

Welcome offer


Personal recommandation


Company image

Customer service

Company authority

Company PR

New customers were attracted by

price


> 50% of the new

customers were

attracted by price

Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems


June 2009© TOTE-M 1994-2009



based on:


30%

28%

21%

21%

20%

20%

19%

18%

17%

14%

13%

13%

12%

0% 5% 10% 15% 20% 25% 30% 35%

Price

Product features

Customer service

Recommendation


Welcome offer

Previous experience with the company

Company image

Company PR

Company authority

User complaints

Brand experience


Low-income consumers make a

decision based on previous

experiences more often

than high-income

consumers

( 29% vs 7%)

Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems

New customers mainly used internet as a

source of information


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Company authority

Company PR

Customer service


Product features

Price

Company image


Brand experience


Users' complaints

Welcome offer

Television

Print

Internet

Personal

In-Store

New customers

preferred to consult

online information

during their

decision-making

Orientation

Purchase

Use

New needs

Problems

Te

leco

m O

pe

rato

rs


June 2009© TOTE-M 1994-2009


6%

62%

32%


Recently switched customers are not very

enthusiastic about their new providers:

NPS = -26%


Te

leco

m O

pe

rato

rs

Orientation

Purchase

Use

New needs

Problems



90%

89%

87%

83%

76%

51%

46%

42%

39%

37%

36%

33%

28%

10%

13%

18%

56%

28%

16%

6%

12%

21%

8%

-31%

-30%

-33%

-22%

-12%

-10%

7%

-10%

-53%

-7%

-8%

-39%

-20%

-10%

-6%

-5%

-9%

-22%

-4%

-10%

Customer service

First time right


Price

Product features


Company PR

Company image

Brand experience

Welcome offer

Company authority


Webtestimonials

Complaints

Work related

Forced switch

Te

leco

m O

pe

rato

rs

Churn drivers


New choice drivers


June 2009© TOTE-M 1994-2009


Conclusions &

Recommendations




Conclusions – Testimonials

25% of users repurchased, based on testimonials

Higher educated are more influenced by testimonials

Testimonials are mostly used for consumer electronics,

holidays and books & music


Con

clu

sio

ns


June 2009© TOTE-M 1994-2009


Conclusions – Financial Services

More than 50% of customers are detractor of their bank

Insufficient customer management is the main reason to

leave a bank

NPS is not directly related to churn rate. Cost of change

prevents dissatisfied customers to leave

Interest is an important criterion to choose

Customer management will become more important in

the future, e.g. when account numbers can be

transferred to a new bank


Con

clu

sio

ns

Conclusions – Consumer Electronics

Customers are quite loyal to their brands in spite of a

high level of detractors

Manufacturers have to keep their products up-to-date

Loyalty is defined by the product and customer service

Consumers have a multichannel approach for verification

when choosing or leaving a brand


Con

clu

sio

ns


June 2009© TOTE-M 1994-2009


Conclusions – Telecom Operators

Customers are loyal, in spite of a high level of detractors

Cost of change prevents customers to leave

Switched customers are not more satisfied than loyal

customers

Customer management is the most important driver for

customer loyalty

New choices are strongly related to price and product

offering (e.g. phones)


Con

clu

sio

ns

Recommendations

Personal Active interactions on social media show your customers that you care about

their voice

Take your customers’ social group into account when defining your socialmedia strategy

Provide your customers with a personal, tailored service offering

Memorable Use testimonials to see what moves your brand and to tune your promise,

products and services

Surprise your customer by delivering service above expectation over all touch points

Enduring Tailor your social media strategy to each consumer life cycle stage

Focus on customer experience to create loyal customers

Flawless business processes reduce your operating cost level and have anenduring positive impact on your customer value

Maintain a competitive pricing and product/service offering to avoid churn

Invest in your existing customers


Reco

mm

en

da

tio

ns


June 2009© TOTE-M 1994-2009



TOTE-M

Van Diemenstraat 314

1013 CR Amsterdam

The Netherlands

T +31(0)20 420 77 80

F +31(0)20 420 26 81

E [email protected]

www.tote-m.com

TOTE-M Consumer Research Report on Loyalty, (Potential) Churn and Testimonials 2009.pdf

Business

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