2012 Research

What Happens After A Good or Bad Experience?

December 2012

The report has 20 graphics full of data on consumer behavior and company ratings. It starts by looking at the prevalence of bad experiences. It turns out that 20% of consumers have had a bad experience with a TV service provider while only 5% have had a bad experience with a grocery store.

TV Service Providers Deliver The Most Bad Experiences One of the streams of analysis looks at how consumers give feedback. As you can see, companies are more likely to hear about bad experiences than good experiences.

How consumers give feedbackHere are some of the other findings in the research:

 

ING Direct (2%), Holiday Inn Express (2%) Whole Foods (3%) and Holiday Inn (3%) had the fewest occurrences of bad experience, while Best Buy (29%), QVC (29%), Gap (28%), and eBay (26%) had the most.

 

After a bad experience consumers were most likely to completely stop spending with rental car agencies (40%), credit card issuers (39%), computer makers (35%), and auto dealers (35%), but least likely to stop spending with retailers (9%) and Internet service providers (10%).

 

When companies responded very poorly after a bad experience, 47% of consumers stopped spending completely with the company. When they had a very good response, only 6% stopped spending and 37% increased their spending.

 

Retailers (46%) most often recovered well from a bad experience while Internet service providers (15%) and health plans (15%) were the worst at recovering.

 

38% of consumers gave feedback directly to the company after a very bad experience, but only 31% gave feedback after a very good experience.

 

14% of consumers gave feedback on a rating site like Yelp after both a very good or a very bad experience.

 

The use of twitter to communicate about a very bad experience has grown from 4% to 9% of consumers over the last year.

 

33% of 18- to 24-year-olds have posted about a good experience on Facebook, compared with only 5% of those who are 65 and older.

 

18% of 18- to 24-year-olds have tweeted about a good experience, compared with only about 1% of those who are 55 and older.

 

17% of consumers who earn $100K or more have tweeted about a bad experience, compared with only 7% of those who earn less than $50K.

 

Given their customer demographics, Motel 6ING DirectAlbertsons, and RadioShack are the most likely to receive direct customer feedback that is negatively biased while CablevisionAvisNissan dealers, and Dodge dealers are the most likely to receive positively biased feedback.

 

Given their customer demographics, Cox CommunicationsSymantecING Direct, and TracFone are the most likely to have negatively biased comments on Facebook, while CablevisionAOLKaiser Permanente, and Holiday Inn are the most likely to have positively biased comments.

 

Given their customer demographics, Verizon and GE are the most likely to have negatively biased comments on Twitter, while Avis and Edward Jones are most likely to have positively biased tweets.

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