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Brann Research on Consumers and Company Practices
30/5/01



Up to half of a company’s customers can be so irked by common marketing, sales, and customer service practices that they're ready and willing to stop doing business. This is the shocking finding from the new study "Marketing Practices That Drive Customers Away," recently released by Brann Worldwide.

The research reveals how some consumers are so fed up that they aren't just leaving, they are actively engaging in anti-advocacy against some companies. This means that they are warning friends, co-workers, and relatives about bad buying experiences through word-of-mouth, e-mail campaigns and Internet chat rooms. On the positive side however, the study also shows the potential for those consumers to pass on the word about good service and satisfying buying experiences as well.

The report’s detailed analysis describes how these consumer reactions not only threaten the branding and marketing investments already made by a company, but also pose a huge potential for long term revenue loss as well. In fact, businesses spending millions on advertising and marketing may be surprised to learn they are undermining their own investments because of a number of simple, and often avoidable, mistakes.

Some of the highlights in this sense are that:

  • 57 % of consumers say they would abandon a company because they get charged for technical support when the product or manual is faulty.
  • 52 % say they would switch from a company that promises to call back but never does.
  • 50 % say they would leave a company whose service representatives ask for information over and over again without fixing the problem.
  • These and other practices are particularly offensive to women, those aged 55+, and heavy Internet users.
"It's no secret that companies are alienating their current and potential customers with these marketing practices, " said Nancy Hallberg, executive vice president and North American Insight director at Brann. "But our findings suggest that the depth of the problem is much greater than most companies realise. If even a percentage of disgruntled consumers vote with their wallets, many companies will experience (in fact, are already experiencing) business losses ranging from 15-30%. Depending on overall revenue, that could represent hundreds of millions of dollars in lost business." Brann conducted its study through Harris Interactive, who surveyed 1,800 consumers in the US and UK earlier this year. In addition, Brann has launched a Buyer's Experience website to track this area online.