A new survey finds that 71% of consumers say that most of the companies they do business with need to improve their customer experience.
Most companies need to improve their customer experience, according to a new survey of 4,000 U.S. and Canadian adults commissioned by financial technology platform Broadridge.
The survey, fielded in August, asked questions related to financial services, insurance, healthcare and utility verticals.
The majority of customers — 71% — said most of the companies they do business with need to improve their customer experience. The statistic was roughly the same percentage as last year but the number has increased over the years, with only 35% of consumers in 2019 agreeing that the companies they interact with have to improve.
Retailers Raise Customer Experience Bar
This downgrade in reported customer experience is likely less about the service quality businesses provide and more about how the bar and consumer expectations have risen, said Matt Swain, Head of Communications Insights and Experience at Broadridge.
“There are some companies that have invested heavily with the proverbial blank check and in providing a differentiated customer experience,” Swain said. “That has raised the bar on what defines a great customer experience.”
Online retailers, for example, have some of the best customer experience in the market today, Swain said, and that puts pressure on companies in other verticals.
For a top customer experience, businesses need to provide clear communication and honor consumer preferences regardless of the company’s preference, Swain said. For example, businesses should send consumers a paper bill instead of a digital one if that’s what they prefer, or allow consumers to speak to a human over a chatbot. Customer service is an integral part of customer experience, Swain said.
Consumers say that companies with the best customer experience do the following better than others:
- 41% — Make it easy to talk to a real person
- 38% — Communicate clearly and consistently
- 38% — Make it easy to navigate my account online on my own
- 33% — Send me notifications when there’s something important to look at
- 21% — Send me relevant and personalized communications
- 21% — Easily allow me to select how I want to receive communications
- 20% — Provide timely/frequent communications
- 20% — Offer helpful, easy to navigate self-service features
- 20% — Provide a consistent experience across all areas of a website/app
- 13% — Try new things to improve my service
Clear Communication Is Vital for Businesses
One of the main takeaways from the research is how businesses need to communicate clearly.
Consumers say they like to communicate with businesses in the following ways:
- 83% — Email
- 74% — Text message
- 70% — Mobile app
- 70% — Company website
- 61% — Physical mail
- 40% — Virtual
Email also topped the list for the preferred communication method for account updates and statement availability.
Businesses should test if their outbound communications are too complex with tools that evaluate reading level, Swain said. Tools can grade the piece based on number of syllables in a word, number of words in a sentence and sentences in a paragraph. Businesses should aim for a sixth grade reading level, he said. Often, businesses Broadridge works with have a Grade 16 level, which is too high, he said.
Besides the complexity of the language, Swain also advises businesses to have a consistent branded look and use the same icons across channels, to help consumers quickly understand the brand that is talking to them.
Companies Need a Quality Digital Experience, While Respecting Paper Preferences
Another core part the customer experience is how consumers interact with a business digitally. And that needs improvement, too, as 61% of consumers say that the digital experience needs improving for most of the companies they conduct business with.
On the flip side of the digital experience is how consumers communicate with businesses on paper, such as with a statement or bill. At 45%, nearly half of customers say they are paperless in their communications with businesses. And largely consumers who want to be paperless are, according to the survey. Consumers may still want paper statements, bills and other communications as a reminder of a task to do and for sharing information within a household, Swain said.
For businesses, however, paperless offers large advantages, such as cost savings, timeliness, personalization and tracking metrics like customer engagement. Still, businesses should honor consumer preferences, such as still sending them a paper bill if that’s what they want, and not forcing them into a habit.
Build Trust and Simplify Communications
The survey found that the top three functions companies should prioritize to build trust and make a great experience include:
- Honoring their preferred communication channels (39%)
- Providing a simple way for them to engage across channels (38%)
- Simplifying the way they do business with companies (33%)
At 59%, most consumers say they have lost trust in a company after a poor experience of communication.
Businesses may know if they are missing the mark if they have a high volume of calls related to the same issue, Swain said.
Swain recommends for companies to use simple language, honor consumers’ preferences and provide simple ways to contact the business as best practices to get ahead of any potential lost trust.
The survey also found:
- 80% of consumers say they would like more transparency in how companies plan to use their data.
- 65% of consumers are concerned about their data being comprised due to AI.
- Only 37% of consumers say AI has improved their overall experience.
- The majority (55%) of consumers say they prefer to fill out a form with an online fillable form.
