Customer Service Quality Falling Short of Rising Expectations Across the Globe, Accenture...

Customer Service Quality Falling Short of Rising Expectations Across the Globe, Accenture Study Finds

Expectations increased most in emerging economies
NEW YORK--(Business Wire)--Companies are not keeping pace with consumers' rising expectations
for service, especially in emerging economies, according to results of
a global study released today by Accenture (NYSE: ACN).

The findings are outlined in a new report, "Customer Satisfaction
in the Multi-Polar World: Accenture 2007 Global Customer Service
Satisfaction Survey Report," the third in a series of annual studies
designed to examine consumer attitudes toward customer service. While
the studies in 2005 and 2006 focused on the United States and the
United Kingdom, the 2007 report expanded the geographic scope to also
include Australia, Brazil, Canada, China and France.

Consumer Service Expectations Increasing

More than one-half (52 percent) of the more than 3,500 consumer
respondents surveyed this year across five continents reported that
their expectations for better service have increased over the past
five years. Additionally, one-third (33 percent) said they have higher
service expectations today than they did just last year.

Expectations increased the most among consumers in emerging
economies. More than nine out of 10 consumers in China (93 percent)
said their expectations for better service had increased over the past
five years, and 75 percent said their expectations are higher than
they were a year ago. In Brazil, nearly half (48 percent) of
respondents said that their expectations had increased since last
year.

The findings indicate that increases in customer service
expectations continue to outpace efforts made by companies to improve
service. Globally, nearly one-half (47 percent) of survey respondents
said their expectations were met only "sometimes," "rarely" or
"never." The highest level of dissatisfaction was found among
Brazilian consumers, with two-thirds (67 percent) of those respondents
reporting that their expectations are met only "sometimes," "rarely"
or "never."

Even in developed economies, where companies have spent billions
on customer service capabilities, dissatisfaction with service remains
high. For instance, more than half (52 percent) of U.K. consumers said
the frequency with which their customer service expectations are met
is "sometimes," "rarely" or "never."

Gap Between Service and Consumer Expectations Contributing to
"Churn"

The gap between service expectations and the services consumers
receive translates into lost business. A majority (59 percent) of
consumers in developed and emerging economies reported that they quit
doing business with a company due to poor service; the figures were
significantly higher for consumers in the emerging economies of China
and Brazil -- 85 percent and 75 percent, respectively. Additionally,
the findings found an increase in the number of U.K. consumers who
reported a significant increase in switching service providers due to
poor service - 58 percent, up from 50 percent in 2005.

"Consumers are empowered with more knowledge and choices than ever
-- driving a seismic shift in the balance of power to the consumer and
adding to the complexities multi-national corporations face," said
Woody Driggs, managing director of Accenture's Customer Relationship
Management practice globally. "Consumers in developed and emerging
economies alike have shown their willingness to stop shopping at
companies that can't meet their service expectations."

The study found that customer churn resulting from poor service
remained prevalent across industries. Retailers, banks and Internet
service providers were the industries most frequently identified by
consumers as those where poor service had led them to take business
elsewhere -- selected by 21 percent, 21 percent and 20 percent of all
respondents, respectively.

Knowledge of Diverse Consumer Preferences Must Underpin Service
Delivery

To begin to address the service issues identified in the findings,
the Accenture report recommends that organizations incorporate the
customer's perspective, values and actions into their business and
operations strategy, and into their capability development and
execution. For instance, 43 percent of consumers surveyed identified
the ability to resolve an issue with a single call rather than
speaking with multiple service representatives as one of the most
important aspects of a satisfying customer service experience. By
contrast, only 22 percent identified the speed of the response.

"To differentiate themselves, rebuild loyalty and fend off
competition for valued consumers, leading companies respond by
consistently delivering an experience that is tailored to the
customer," said Robert Wollan, managing director of Accenture's CRM
Service Transformation Management Consulting practice. "Competing in
multiple countries has made this an even more complex challenge, and
companies are finding that a 'one size fits all' experience -- even an
improved one -- won't be enough to drive growth around the corner, let
alone around the world."

More than four out of 10 (41 percent) of all respondents reported
that the overall quality of service they receive is "poor/terrible" to
"fair." The most severe evaluation of quality was rendered by French
consumers, with 60 percent of them saying that the service they
receive tends to be "poor/terrible" to "fair." Although satisfaction
with service was highest in the United States, only 7 percent of U.S.
respondents rated it "excellent," and 28 percent said it was
"poor/terrible" to "fair."

Additionally, when asked if they expect better service in exchange
for spending or purchasing more frequently from a company, 71 percent
of respondents said they expect "much" or "somewhat" better service.
The expectation for "much better service" when spending more was
particularly strong among Chinese and Brazilian consumers, at
83 percent and 63 percent, respectively. Expectations of consumers in
developed countries were a bit lower: 35 percent in the United
Kingdom, 38 percent in Canada and 39 percent in the United States.

Country by country, the mix of factors that determine whether an
experience is satisfying or frustrating varies, as do consumers'
responses to poor service. For instance:

-- Consumers in the United Kingdom were more likely than those in
China to report being frustrated when left on hold too long
while speaking with customer service representatives (81
percent versus 59 percent).

-- The ability to interact with just a single customer service
representative is more important for respondents in France,
Brazil and Canada -- selected by 39 percent, 34 percent and 32
percent of respondents in those countries, respectively --
than it is for Chinese consumers (12 percent).

-- Brazilian consumers were the most inclined to identify lack of
personalized solutions from companies as a service frustration
- cited by 63 percent of respondents in Brazil -- while it was
considerably less important to U.S. and U.K. consumers, cited
by only 37 percent of respondents in each of those countries.

This report highlights the frustrations consumers face and the
need for companies to implement customer-focused programs that can
improve services.

"To keep pace with rising customer expectations, enterprises must
continue to reinvest in their customer-facing capabilities," said
Matthew Goldman, Gartner research vice president. "Through use of
internal or external capabilities, successful enterprises will develop
or enhance their understanding of changing customer preferences and
how to deliver on those needs."

Methodology

The Web-based survey of 3,552 consumers in Australia, Brazil,
Canada, China, France, the United Kingdom and United States was
fielded in July and August 2007. The findings served as the basis for
the new white paper, "Customer Satisfaction in the Multi Polar World:
Accenture 2007 Global Customer Service Satisfaction Survey Report." In
2005 and 2006, Accenture conducted similar studies in the United
States and the United Kingdom.

About Accenture

Accenture is a global management consulting, technology services
and outsourcing company. Combining unparalleled experience,
comprehensive capabilities across all industries and business
functions, and extensive research on the world's most successful
companies, Accenture collaborates with clients to help them become
high-performance businesses and governments. With more than 175,000
people in 49 countries, the company generated net revenues of US$19.70
billion for the fiscal year ended Aug. 31, 2007. Its home page is
www.accenture.com.

Accenture
Barbara Lyon, +1 703-947-1838
barbara.d.lyon@accenture.com

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