Word of mouth advertising works: This is how local consumers behave

MBOMBELA – Providing good service is all it is cracked up to be, especially since South African consumers will tell people about their good or bad experience with your company.

The recent global study was conducted by Verint Systems Inc., in partnership with analyst and consultancy firm Ovum and United Kingdom-based research company Opinium, on more than 18 000 consumers in nine countries.

It shows that four in five South Africans are likely to tell their friends and family if they receive good customer service.

The survey also showed hat South African customers are less loyal than most of the other countries studied. The study highlights the importance of quick, easy and personalised service in securing customer loyalty.

South African respondents also describe themselves as most loyal when they love a company’s products (29 per cent) or because the company understands their needs as an individual (27 per cent).

Furthermore, 54 per cent of consumers felt that customer service was more of a transactional relationship than a personal one.

They were less concerned about companies knowing their mood and responding accordingly (15 per cent), and more concerned about getting their questions answered (85 per cent).

“This study is a wake-up call for brands looking to revamp their customer service to cater today’s more demanding and better-informed customers,” says Mr Jeremy Cox, principal analyst of customer engagement at Ovum.

“While brands have the ability to precision-target highly personalised communications for every single customer, the study shows what people around the world actually value most are the basics – questions answered with minimal effort on their part.

“Brands therefore have a fine balance to strike between the customised and impersonal service they deliver. Customers expect to be recognised, but will have adverse reactions if they feel stalked.”

The study also explored the impact of poor service on switching behaviour. Though cheaper pricing is the single biggest motivation for switching (24 per cent), rude staff (18 per cent) and too much effort to get what they need (13 per cent) are the second and third highest motivations.

“The rules of customer engagement have less to do with personalisation at all costs, and everything to do with making life easier for people,” says Ms Rachel Lane, director of customer analytics for Verint.

“On the whole, consumers have no patience with firms that don’t get the basics right.”

• Read more on customer service here.