Ovum & LogMeIn Study Finds 76 Percent of Customers Stop Doing Business with a Brand Following a Bad Experience

Research Reveals Almost 50 Percent of Customers Believe the Ability to Reach Support Reps Has Worsened Over the Last Two Years

Boston, Massachusetts, UNITED STATES

BOSTON, May 12, 2015 (GLOBE NEWSWIRE) -- A new study by LogMeIn, Inc. (Nasdaq:LOGM) and Ovum reveals a significant disconnect between what today's mobile, always-connected customers have come to expect from customer service and what contact centers are delivering. Although businesses are fully aware of new behavioral trends among customers, not all of them are tailoring their customer service experience to match customers' needs. The research shows that 48 percent of customers surveyed believe that the ability to reach the right representative has worsened over the last two years and as a result, 76 percent claimed to have stopped doing business with a brand following a bad customer service experience.

Conducted by Ovum Research, a leading global technology research and advisory firm, on behalf of LogMeIn, makers of the popular customer engagement tools, BoldChat and LogMeIn Rescue, the survey explores the connected-consumer's expectations for customer service and how those expectations compare with what contact center managers believe and are prepared to face. Survey respondents were sourced from all major industry categories, including both public and private sector, and included contact center managers and customers from North America, Europe, Australia & New Zealand.

Among the key findings were that mobile, web self-service and chat are rapidly growing channels for customer support. Over the last two years, the number of customers using a mobile phone for support calls doubled to 42 percent, the use of mobile apps has more than doubled to 20 percent up from 8 percent, and the number of customers using live chat also doubled to 28 percent.

Other key findings include:

  • Time taken to reach an agent is the biggest customer complaint:
    Customers are most frustrated with time taken to reach a representative and resolution time. Almost 50 percent of customers believe that the ability to reach the right representative has worsened over the last two years. Long hold times and automated service menus continue to irritate customers who are keen to get fast resolutions to their problems. This explains why many are turning to the web for support inquiries, with contact centers seeing almost 50 percent of interactions coming from channels other than voice.
  • Customer service relationships directly impact loyalty:
    76 percent of customers claimed to have stopped doing business with a brand following a bad experience. Businesses need to pinpoint the cause of customer dissatisfaction and make changes to improve retention and protect their customer base.
  • Customers look to web and mobile for answers first:
    60 percent of customers said they use the web to look for information always or most of the time before contacting customer service. However, only 9 percent of managers believe that their customers frequently use the web before calling, showing a big discrepancy. Managers need new tools to track web behavior and link it to live customer interactions.
  • Use of email and web chat continues to grow:
    The number of customers using live chat and email has doubled over the last two years. As this number increases further, contact centers must be ready to handle interactions in non-voice channels, but also to provide quick resolution, as resolution rates are lower for support inquiries across non-voice channels.
  • Live chat is a promising channel for support interactions:
    Not only does it offer fast access to agents, but it is efficient because agents can handle two or three chats at the same time. It can also be used on mobile devices, using links from a mobile application or site, and agents can link customer web behavior to a chat interaction so agents are more readily aware of particular behaviors.
  • Managers understand that wait times are an issue:
    Managers do realize that customers need quick resolutions to their problems, as their top priorities for 2015 are agent training and improving resolution times. They track resolution times and customer satisfaction among other metrics in order to improve connectivity between agents and customers, whether through new or traditional channels.
  • The Internet of Things shows potential for technical resolutions:
    The Internet of Things is not completely understood by customers, but they would be willing to use it if it means solving technical issues quicker. Contact center managers, however, are familiar with the benefits of connected devices and are keen to resolve issues remotely.

"This dual perspective study confirms that customers are increasingly using digital channels for support, especially if they know they can get faster resolutions and responses. It also indicates that businesses need to adapt their service tools to match customer needs and improve access to live agents," said Aphrodite Brinsmead, Senior Analyst at Ovum. "Contact centers should invest in technology to understand cross-channel behavior and link customers' digital interactions with their profiles and case records. By optimizing online support and guiding customers to the right channel for their issues, businesses will be able to improve resolution rates and customer satisfaction."

"Today's highly mobile customers are empowered to seek out support from multiple touch points and have come to expect a response through those channels in minutes, let alone hours. Yet contact centers are not equipped to provide the fast resolutions their customer's desire. This research provides an insightful view into the needs and frustrations of these mobile customers, giving contact center managers the opportunity to invest in the correct tools and prioritize their support channels," said W. Sean Ford, CMO of LogMeIn. "We believe that live chat benefits all parts of the business, particularly when added to websites or mobile applications and therefore should be a priority for contact center managers."

Related materials:

Full report: http://bit.ly/1DW7q7F

Infographic: http://bit.ly/1KqHrLa

About the research/methodology:

This paper was written by Ovum in collaboration with LogMeIn. The research and analysis contained herein is based on original, independent research by Ovum. The survey was comprised of 315 contact center managers and 400 customers across North America, Europe and Australia & New Zealand. Responses were gathered through a web-based survey program in November and December 2014. The surveys reviewed the importance of customer service in keeping customers loyal. It looked at customers' multichannel expectations and discovered gaps in the solutions that customers need compared with the mobile and web support tools that businesses are providing. The survey spans all sizes of business and major industry categories, including both public and private sector.

About LogMeIn, Inc.

LogMeIn, Inc. (Nasdaq:LOGM) simplifies how people connect to each other and the world around them. With millions of users worldwide, our cloud-based solutions make it possible for people and companies to connect and engage with their workplace, colleagues, customers and products anywhere, anytime. LogMeIn is headquartered in Boston with offices in Bangalore, Budapest, Dublin, London, San Francisco and Sydney.


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