Emplifi, a market research company, recently published the results of a brand-loyalty survey conducted both in the U.S. and the U.K. The survey disclosed that dissatisfaction as a result of quality issues that were not resolved by effective customer service resulted in rejection of a brand. Examples of suboptimal service included a delay in response and failure to resolve issues.
An overwhelming proportion (86 percent) of respondents indicated that they would leave a brand if they experienced an unsatisfactory response to a reported problem. Half of those responded have in fact left a brand to which they were previously loyal due to poor customer service. This aspect of marketing is even more important in the U.S. than in the U.K. with half of U.S. respondents sensitive to social media experiences compared to approximately one-third of U.K. respondents. The study determined that one out of six online shoppers abandoned a purchase because of one unsatisfactory experience and half have actually left a brand within the past year following a single issue. A spokesperson for Emplifi noted, “There is a major disconnect happening right now between what consumers expect and what brands are delivering when it come to their customer experience efforts”.
Obvious action to maintain customer goodwill and loyalty include a strong social media presence, a 24-hour customer support service and prompt resolution of complaints. This requires commitment of resources to support a brand. From a review of quarterly reports many companies claim goodwill and intangibles as half or more of their net asset value. Brand loyalty and image can be degraded by a concerted social media campaign or specifically in the case of a food company, negative online or media publicity resulting from reports of contamination, foodborne infection, a welfare issue or exploitation of employees.