Knowledge - Insights: White Papers
The Callminer Churn Index 2020
Despite new UK regulations that encourage consumers to save money by changing suppliers, average customer churn increased by only 3.7% versus 2018, according to the 2020 CallMiner Churn Index which was released today. While consumers are showing increased motivation to stay loyal, CallMiner’s study estimates that British businesses still lose £33.4 billion per annum due to overall churn and £4.95 billion per annum due to unplanned churn.
“Our research found that while UK consumers want to be more loyal and are less price-sensitive than in years past, brands continue to push customers away with poor service.” said Frank Sherlock, VP of International at CallMiner, the leading platform provider of award-winning speech and customer engagement analytics. “We estimate that UK businesses lose nearly £5 billion a year to unplanned churn.”
CallMiner surveyed 2,000 U.K. adults that have contacted a supplier over the past 12 months to understand what makes them stay loyal or switch. Select research findings include:
- Phone-based customer support increases. Despite the proliferation of self-service options, consumer reliance on phone-based customer support increased 15% since 2018.
- UK consumers put less weight on price. While price remains the number one driver of churn, it declined in importance by 4% from 2018, despite government programs that encourage price-based switching. Emotional factors relating to customer experience, loyalty and fair treatment increased in importance.
- Contact centre performance drives both loyalty and churn. 1% of consumers are likely to stay loyal after a positive call centre experience; 78.4% are likely to switch after a bad call centre experience.
- Super-agents shape customer emotions. 9% of customers had their emotional state change from negative to positive following their last call with a brand; 18% report having their emotional state shift because of poor agent behaviour.
“The rise of self-service has made human support even more critical. Now more than ever, when customers call a provider, we expect one of two things: they are already frustrated due to a lack of information and online support, or they have a complex and sensitive issue. Both cases require emotionally intelligent ‘super-agents’ who can connect, solve problems and deliver exceptional service,” said Adam Walton, COO at CallMiner. “Customer service agents are on the front line, managing their own transition to working from home and facing significant new demands for help from customers where they are often the only human interaction between consumers and brands. Equipping agents to satisfy the needs of emotionally charged, and sometimes vulnerable, customers is essential for retention, loyalty and revenue.”
In terms of consumers’ preferred channels for customer support, website- and social media-based support declined 34% and 27%, respectively. Text message-based support grew the most since 2018 (+38%), followed by phone support (+14%).
While the average rate of churn experienced little change, some sectors saw significant increases. The highest churn rate increase of 102% was in the banking sector, which saw the number of customers switching more than double from 12.2% to 24.6%.
Download this white paper - and get the latest Engage Customer news
Engage Customer Insights offers free downloads for registered users. Please complete the form. In addition to providing the white paper download, this also gives you access to our free weekly newsletter and the opportunity to receive invites to our world-class events and webinars.
You might also like...
Five Building Blocks to Ensure Business Continuity in...
23rd June 2020
Tips for Deploying AI Chatbots & Virtual Agents...
04th June 2020
How Virgin Money UK listen and respond to rapidly...
21st May 2020
Beyond Philosophy - Controlling the controllable - Covid...
Colin Shaw, Beyond
Beyond Philosophy - How Apple uses psychology to...
Colin Shaw, Beyond
Beyond Philosophy - How small changes can alter customer...
Colin Shaw, Beyond
The Callminer Churn Index 2020...
15th May 2020
Sustaining Customer Experience Amidst the Coronavirus Threat...
15th April 2020
Keep Up To Date - Subscribe To Our Email Newsletter Today
Get the latest industry news direct to your inbox on all your devices.