Temkin Group Publishes New Research Showing That Many Consumers Stop Spending With Companies After a Bad Experience

Temkin Group Publishes New Research Showing That Many Consumers Stop Spending
                    With Companies After a Bad Experience

Rental Cars, Credit Cards, Computers, and Auto Dealers Are the Most at Risk,
but Service Recovery Can Increase Future Spending

PR Newswire

WABAN, Mass., Dec. 18, 2012

WABAN, Mass., Dec. 18, 2012 /PRNewswire/ -- Temkin Group, a leading market
research and consulting firm that helps organizations improve their customer
experience, released a new research report: "What Happens After A Good or Bad
Experience?" The study, based on a survey of 5,000 U.S. consumers, analyzes
feedback and purchase behaviors after good and bad experiences.

The report shows that consumers encounter bad experiences most frequently with
TV service providers, retailers, and Internet service providers, but report
the fewest bad experiences with grocery chains. Consumers respond differently
to bad experiences across the 19 industries in the study. More than one-third
of consumers who had a bad experience with a rental car agency, credit card
issuer, computer company, or auto dealer completely stopped spending with the
company. Fortunately for retailers and Internet service providers, their
customers are the least likely to abandon them after a bad experience.

The research also examines how consumers respond to a company's service
recovery efforts. When consumers feel that a company responded very poorly
after a bad experience, almost three-quarters of them stopped or decreased
their spending with the company. On the other hand, when companies had a very
good response, less than one out of five decreased their spending and more
than one-third increased their spending.

"Every company delivers some bad experience, but the good ones build loyalty
by quickly responding to these issues and learning from their mistakes,"
states Bruce Temkin, Customer Experience Transformist & Managing Partner of
Temkin Group.

Here are some additional findings in the report:

  oING Direct, Holiday Inn Express, Whole Foods, and Holiday Inn have the
    fewest occurrences of bad experience, while Best Buy, QVC, Gap, and eBay
    have the most.
  oMore consumers give feedback directly to the company after a very bad
    experience than they do after a very good experience.
  oThe use of Twitter to communicate about a very bad experience has more
    than doubled over the last year. Consumers who earn at least $100,000 are
    more than twice as likely to tweet about a bad experience than those
    making $50,000 or less.
  oMore than one-third of consumers between the ages of 18 and 24 write about
    their good and bad experiences on Facebook.
  oCox Communications, Symantec, ING Direct, and TracFone are the most likely
    to have negatively biased comments on Facebook, while Cablevision, AOL,
    Kaiser Permanente, and Holiday Inn are the most likely to have positively
    biased comments.
  oVerizon and GE are the most likely to have negatively biased comments on
    Twitter, while Avis and Edward Jones are most likely to have positively
    biased tweets.

The report "What Happens After A Good or Bad Experience?" can be downloaded
from the Customer Experience Matters blog, at ExperienceMatters.wordpress.com
as well as from the Temkin Group website, www.TemkinGroup.com.

About Temkin Group
Temkin Group is a leading customer experience research and consulting firm
with one simple goal for its clients: increase customer loyalty by becoming
more customer-centric. The company combines customer experience thought
leadership with a deep understanding of the dynamics of large organizations to
help senior executives accelerate their results. For more information, contact
Bruce Temkin at 617-916-2075 or send an email to info@temkingroup.com.

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 Chair of the Customer Experience
Professionals Association (CXPA.org), a global non-profit organization
dedicated to the advancement of customer experience management.

This press release was issued through eReleases® Press Release Distribution.
For more information, visit http://www.ereleases.com.

SOURCE Temkin Group

Website: http://www.temkingroup.com
 
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