Press Release


82 Percent of Consumers Withdraw Their Business Because of Poor Customer Experiences

Research Reveals Companies Need To Improve Customer Experiences and Retention Strategies or Risk Going Out of Business

Sydney, Australia, 10/31/2006

82 percent of customers in Australia and New Zealand have stopped doing business with a company due to poor customer experiences, according to research released today. The research, conducted by AMR Interactive for RightNow® Technologies (NASDAQ: RNOW), showed the quality of customer experiences along with good products are more important than price and reputation in customer retention.

According to Alison Higgins-Miller, RightNow’s Vice President of Asia-Pacific,Consumers are frustrated with poor customer service and will vote with their feet.

“Customer experience is the most important factor for companies to develop a loyal customer base, and stay ahead of the competition. In fact, poor customer services strategies can make or break a business.”

Government agencies fared worst in the research with only 29 per cent of customers satisfied. This was followed by telecommunication providers (48 per cent satisfied) and banks (58 per cent).

“This is a wake up call for all Australian businesses chasing revenue growth and a competitive edge. While companies aggressively chase new customers, they let existing customers walk out the back door,” said Higgins-Miller.

Other key findings from the research include:

  • Call centres are a major source of customer dissatisfaction. Frustrations include being on hold for a long time (78 per cent), automated responses that don’t provide the right option (75 per cent), inconsistent responses (72 per cent) and automated menus that travel in circles (71 per cent)
  • Consumers would rather clean the toilet (46 per cent), pay their bills (42 per cent) and nearly one in five (16 per cent) would rather be stung by a jelly fish than deal with poor customer experiences
  • 83 per cent of consumers think good customer service is key to building customer loyalty

    • “Experience shows it costs a lot more to recruit new customers than to retain existing ones,” said Higgins-Miller. “Enterprises struggle with how to deliver great customer experiences cost effectively. However, it can be achieved with an effective customer experience strategy that is supported by the right technology.”

    “A successful customer experience ensures customers are satisfied and means less cost for the company as they keep hard-won consumers and also have fewer complaints to deal with.” she said.

    The Customer Experience Report: Australia and New Zealand survey used results from 1054 respondents (728 from Australia and 326 from New Zealand) and was conducted 14th – 25th September 2006. Data has been weighted to the adult populations of Australia and New Zealand. The research was conducted by AMR Interactive for RightNow Technologies.


    About RightNow Technologies

    RightNow (NASDAQ: RNOW) is leading the industry beyond CRM to high-impact Customer Experience Management solutions. Approximately 1,800 companies around the world turn to RightNow to drive a superior customer experience across the frontlines of their business. As a win-on-service strategy becomes a business imperative, Customer Experience Management solutions have become essential for business success. Founded in 1997, RightNow is headquartered in Bozeman, Montana, with additional offices in North America, Europe and Asia. For further information, please visit http://www.rightnowtech.com.au/.

    RightNow is a registered trademark of RightNow Technologies, Inc. NASDAQ is a registered trademark of the NASDAQ Stock Market.