The rapid emergence of the Internet provided a vast source of information available in an instant. As a result, consumers became better equipped to become more knowledgeable about companies, products and services. While this can and has been very beneficial for companies promoting their products and services online, it can also be detrimental when a consumer is unhappy.

 

According to a recent study released by Accenture, a global management consulting, technology services and outsourcing company, the majority of consumers believe that the Internet makes it easier to change service providers. The company conducted a survey of more than 1,000 US consumers online to measure customer loyalty and satisfaction. Key finding from the survey include:

 

·   61 percent of respondents said that the Internet made it easier to change service providers because they had access to information about companies, their services and their competition online.

·   50 percent of respondents said that the Internet facilitated changes due to the ability to actually purchase products and services online.

·   63 percent of respondents stated that they would complain directly to a company about a service or product problem.

·   68 percent of respondents would tell family and friends about negative experiences with companies.

·   68 percent of respondents reported that they would switch to a competing company following a bad experience.

·   80 percent of respondents said that lower prices would entice them to change companies with which they do business followed by provision of better service and better products.

·   82 percent of respondents revealed that they would continue to make purchases from businesses of which they are loyal customers.

 

Breaking up is easy to do, according to Woodruff Driggs, managing partner for Accenture’s Customer Relationship Management practice. Driggs stated that it is more important than ever for companies to perfect customer relationships. Customers have a higher expectation for customer service and if not satisfied, the Internet makes it incredibly easy to identify other service providers. Creating a loyal customer base is critical for companies to sustain their business in a fiercely competitive market.

 

Maintaining customer loyalty is not a new challenge for businesses. However, companies are faced with higher expectations and more informed customers that can lead to dissatisfaction without knowledge to the company. Now, a consumer can become dissatisfied simply by discovering that a competitor offers more services at less the cost. The ability to have this knowledge is not necessarily new, but the ability to find it quickly and on more than one company is something that the Internet has made available at a consumer’s fingertips.

 

The telecommunication industry is in an interesting position in that it strives to provide consumers the latest technology to speed communications. Yet, consumers can use that same technology to become more informed and switch to another company. In order to maintain a loyal customer base in this ever-increasingly competitive market, companies must make it a priority to stay alive and profitable.

 

Susan J. Campbell is a contributing editor for TMC and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.