Report: What Happens After a Good or Bad Experience, 2017

what happens after a good or bad experience reportWe just published a Temkin Group report, What Happens After a Good or Bad Experience, 2017. This is our annual analysis of which companies deliver the most and least bad experiences, how consumers respond after those experience (in terms of sharing those experiences and changing their purchase behaviors), and the effect of service recovery (see last year’s report).

Here’s the executive summary:

To understand how good and bad experiences effect customer behavior, we asked 10,000 U.S. consumers about their recent interactions with more than 300 companies across 20 industries. We then compared results with similar studies we’ve conducted over the previous six years. Here are some highlights:

  • About 19% of the customers who interacted with Internet service providers and TV service providers reported having a bad experience – a considerably higher percentage than in other industries. Of the companies we evaluated, 21st Century, Spirit Airlines, and HSBC deliver bad experiences most frequently.
  • We looked at the percentage of customers in an industry had a bad experience and combined that number with the percentage of customers who said they decreased their spending after a bad experience and then used this data to create a Sales at Risk Index for all 20 industries. Rental car agencies stand to lose the most revenue (6.7%) from delivering bad experiences, while retailers stand to lose the least (1%).
  • Investment firms are most effective at recovering after a bad experience, whereas TV service providers are the least effective.
  • After customers have a very bad or very good experience with a company, they are more likely to give feedback directly to the company than they are to post about it on Facebook, Twitter, or third party rating sites. Customers are also more likely to share positive feedback through online surveys and share negative feedback through emails.
  • Compared to previous years, customers are more likely to share feedback over Facebook and Twitter, and these channels are most popular with consumers who are between 25- and 44-years-old.
  • Of all the companies we evaluated, The Hartford is the most likely to receive negatively biased feedback directly from its customers, while Chubb is likely to receive the most positively biased feedback.

Download report for $195
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Here are excerpted versions of 3 (out of 19) graphics in the report:

internet service providers deliver bad experiencehow industries respond to bad experiences how consumers give feedback

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download how customers respond after good or bad experiences


Report Outline:

  • Bad Experiences are Prevalent in the Internet Services and TV Services Sectors
  • Bad Experiences Can Be Very Costly
  • Consumers Give More Feedback After a Bad Experience
    • The Channels for Direct Company Feedback
    • Good Feedback Is On the Rise
    • Feedback Differs Across Age Groups
  • Which Companies Face the Most Negative Feedback?

 

Figures in the Report:

  1. Internet Service Providers and TV Service Providers Deliver the Highest Percentage of Bad Experiences
  2. Companies That Deliver The Most and The Least Bad Experiences
  3. How Consumers, by Industry, Cut Their Spending After A Bad Experience
  4. Revenues at Risk Due to Bad Experiences
  5. How Industries Respond to Bad Experiences Overall
  6. How Industries Respond to Bad Experiences
  7. How Consumers Give Feedback
  8. How Consumers Give Feedback
  9. How Consumers Give Feedback
  10. Changes in How Consumers Give Feedback After a VERY BAD Experience, 2011 to 2016
  11. Changes in How Consumers Give Feedback After a VERY GOOD Experience, 2011 to 2016
  12. Changes in How Consumers Give Feedback After a VERY GOOD Experience, 2011 to 2016
  13. How Consumers Across Age Groups Give Feedback Directly to Companies After VERY GOOD and VERY BAD Experiences
  14. Companies With Customers Who Are Most Likely to Write Posts on Facebook
  15. Companies With Customers Who Are Most Likely to Write Posts on Twitter
  16. Companies With Customer Who Are Most Likely to Write Posts on 3rdParty Ratings Sites
  17. Companies With Customers Who Are Most Likely to Provide Feedback Directly to Companies
  18. Companies Most Likely to Have Negatively Biased Customer Feedback
  19. Companies Most Likely to Have Positively Biased Customer Feedback

Download report for $195
download how customers respond after good or bad experiences

Written by 

I am a customer experience transformist, helping large organizations improve business results by changing how they deal with customers. As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. I am also a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Simply put, I am passionate about spotting emerging best practices and helping companies master them. And, as many people know, I love to speak about these topics in almost any forum. My “title” is Managing Partner of the Temkin Group, a customer experience research and consulting firm that helps organizations become more customer-centric. Our goal is simple: accelerate the path to delighting customers. I am also the co-founder and Emeritus Chair of the Customer Experience Professionals Association (CXPA.org), a non-profit organization dedicated to the success of CX professionals.

2 thoughts on “Report: What Happens After a Good or Bad Experience, 2017”

  1. Hi Bruce – Tried to download this article, but I get a returned message that says “this product does not exist”!!! What gives? How do I get it?

    And, are you going to be at ICMI in May? I am speaking on this topic! Mary

    1. Mary, sorry. the 3rd party site we use to sell our research did a redesign and got some things wrong. It’s not totally obvious, but you need to elect the number of users in the drop-down box. If you don’t, then you get an error message. And, I won’t be at ICMI.

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