"Show Me the Value," Say Recession-Weary Consumers, According to Convergys Research

Cincinnati—The late ‘90s mantra of “Show me the money” has morphed into “Show me the value,” reflecting a new focus by consumers hungry for value in all its forms, according to Convergys’ recently completed 2010 Consumer Scorecard Research study. Recession-weary U.S. consumers want the companies with which they do business to value them, value their time, value their money, and value their preferences, say the study findings, released today by Convergys Corporation (NYSE: CVG).

“Today’s consumer expectations are clear. They expect good value for their money and timely acknowledgement and resolution of their issues by knowledgeable employees,” said Jim Boyce, President, Global Sales and Services, Convergys. “Consumers will simply take their business elsewhere when their needs are not met. At the same time, the companies that have the customer service mechanisms in place to give their customers what they want are the companies that will retain and even grow market share.”

Convergys conducts primary research to advise its clients on how best they can differentiate themselves and win through the customer service experience. Results from Convergys’ second annual consumer research study demonstrate that the recession has increased consumer demand for excellence in customer service. 46% of the study respondents reported that they are worse off than they were a year ago, and the key word for today’s consumers is “value:”

• Value my time: Consumers continue to expect superior customer service experiences, with 33% of survey respondents choosing “addresses my needs on first contact” as the top customer service attribute, up slightly from the 2008 pre-recession research. Since they are key to first-contact resolution, “knowledgeable employees” also ranked high, chosen by 25% of consumers as the third most important customer service attribute, up from 22% in 2008.
• Value my money: Recession-weary consumers are not just looking for the lowest cost but the best value in their customer transactions. 31% of survey respondents chose “good value for the money” as the second most important customer service attribute, up significantly from 2008. 33% of respondents rated reliable service as more important than price in their definition of what constitutes “good value for money.” Only 5% of customers defined good value as “paying the lowest price.” 
• Value me: “Treats me like a valued customer” was the fourth most important attribute, cited by 22% of survey respondents, up from 13% in 2008 and the fastest growing attribute of choice for consumers who want positive acknowledgment from the companies that win their business. 
• Value my preferences: Survey respondents’ contact channel preferences point to an increasing need for multiple customer care solutions that combine agent-assisted service with automation and self-service options. While consumers still prefer to speak with a customer service agent, customer service via self- service, live web chat, automated phone systems, and e-mail with response is also gaining traction.

Despite consumers’ clear preferences for value and efficient issue resolution, bad customer experiences continue to frustrate consumers, 57% of whom reported having a bad experience with a company, up slightly from 2008. In response, today’s value-minded consumer is more likely to speak with his or her wallet: 44% of the survey respondents who had a bad experience reported that they stopped doing business with that company, up from 38% in 2008.

Those who stay are more likely to seek and expect resolution from a company when they do not receive the service and value they expect. Survey respondents reported that they informed companies of their bad experiences 66% of the time, up from 58% in 2008. Companies that were not equipped to resolve or respond to customer complaints paid the price in customer defections. 57% of survey respondents who reported a bad experience and did not receive a response from the company stopped doing business with the offending party, as did 50% of respondents who received a response without resolution.

80% of survey respondents who had a bad experience with a company also told their friends and colleagues about it, spreading the word through face-to-face chats, e-mails, text messages, and social media, which has immense power to amplify the voice of the frustrated consumer widely among a company’s customers and potential customers.

“There is a silver lining,” says Boyce. “Our research found that a meaningful number of customers who stopped doing business with a company after a bad experience would do business with that company again if the company made an effort to win them back.”

Convergys’ Customer Intelligence Services surveyed 2,500 customers, 1,500 employees, and 120 executives of large companies in the United States and the United Kingdom in January 2010. With its superior understanding of the “new consumer,” Convergys, a global leader in relationship management, helps its clients deliver superior service experiences that improve customer satisfaction and drive strategic advantage.

Webinar

To learn what companies can do to meet the needs of today’s “new consumer,” visit convergys.com/research. Then join Convergys March 24 for a live webinar highlighting key findings from the research. Dr. Chip Bell, Customer-Experience Expert, will explore what companies need to know about the "new consumer" to engage, retain, and ultimately grow their business.

About Convergys
Convergys Corporation (NYSE: CVG) is a global leader in relationship management. We provide solutions that drive more value from the relationships our clients have with their customers and employees. Convergys turns these everyday interactions into a source of profit and strategic advantage for our clients.

For more than 30 years, our unique combination of domain expertise, operational excellence, and innovative technologies has delivered process improvement and actionable business insight to clients that now span more than 70 countries and 35 languages.

Convergys, a Fortune Most Admired Company for nine consecutive years, has approximately 70,000 employees in 82 customer contact centers and other facilities in the United States, Canada, Latin America, Europe, the Middle East, and Asia, and our global headquarters in Cincinnati, Ohio. For more information, visit www.convergys.com