Dive Brief:
- Leaders and customers somewhat differ on how they feel businesses should rebuild a damaged relationship, according to survey research from Metric Sherpa of more than 1,800 consumers and 800 business leaders released Wednesday by Sprinklr.
- After a bad experience with a brand, a fast and honest resolution of the problem would help recover loyalty for 23% of consumers, followed by compensation at 21%. In comparison, 15% of consumers say a genuine apology would increase their loyalty.
- Fast resolution was also the top choice among business leaders as well at 24%, but they placed higher value than consumers on follow-ups to confirm resolution at 20% and sincere apologies at 19%.
Dive Insight:
Customers expect a more transactional approach to resolving issues and rebuilding loyalty than leaders sometimes realize.
Consumers “want problems solved quickly and fairly, with compensation when appropriate,” Sprinklr wrote in its report. “This disconnect explains why many recovery programs underperform: leaders overvalue words, while customers value actions.”
Resolving the issue with customers is very important, according to Sprinklr. Scripted attempts at empathy that offer kind words without resolving the problem can actually accelerate negative word of mouth.
That’s not to mention the financial consequences — about 3 in 5 consumers report leaving a brand after one poor experience, according to the survey.
Trust plays a role in earning forgiveness following a bad experience, but consumers are less trustful of brands than leaders think, according to the report. Nearly 9 in 10 leaders believe customers completely or mostly trust their brand to keep promises, while less than half of consumers say they mostly or completely trust brands.
Loyalty is another area where a gap persists between leaders and customers
Even though 89% of executives say customer loyalty has increased in recent years, only 39% of consumers agree, and both leaders and consumers have different ideas about the factors that contribute to loyalty, according to a PwC survey released Monday. The same survey found that over half of shoppers say their most common reason to stop using or buying from a brand is a bad experience with its products or services.
Clarification: This article has been updated to reflect the survey was conducted and written by Metric Sherpa.
