Amdocs Survey: One out of Four Consumers Leave Service Providers’ Retail Stores without Making a Purchase
Survey identifies customer pain points when visiting retail outlets
ST. LOUIS (September 23, 2009) –
Amdocs (NYSE: DOX), the leading provider of customer experience systems, today announced the results of a survey exploring the main drivers that influence the customer experience when shopping at service providers’ retail stores, as well as its subsequent impact on brand perception.
Amdocs commissioned a survey of more than 4,000 consumers who use wireless phones or devices in the United States, United Kingdom and Canada and had visited a service provider’s retail store over the past six months. More than 60 percent of respondents said that the reason they visited the store was to purchase a new handset or upgrade their existing device–however one in four consumers who visited the store left without making a purchase. For those consumers who intended to make a purchase but did not go through with it, the survey found that half of these failed transactions could have been avoided if the retailer had been able to deliver a better customer experience.
Retail Matters More than Ever
Despite the option to purchase devices and plans online, consumers are still choosing to visit service providers’ retail outlets. The top three reasons cited for visiting a retail store were: the ability to obtain the device right away; direct access to the device to “touch and feel” it before purchasing; to consult with an expert regarding the device’s features and rate plans.
You had them at “Hello”: 60 percent arrive to buy
While 60 percent of those surveyed visited retail outlets intending to make a purchase, one in four left without buying. The primary reasons for abandoning the purchase were the store representative was either not knowledgeable enough about the devices or service plans, or that the wait time to complete the transaction was too long. Store sales staff received the lowest customer ratings in the areas of speed of service, as well as for their concern as to whether the customer had purchased the best service plan or phone to meet their needs; highest ratings were awarded for courtesy and friendliness. The survey found that a smartphone transaction can take up to an average of 15 percent longer than a traditional phone purchase, with increased time and resources devoted to identifying the right product, completing the paperwork and finalizing the purchase.
Impact on brand perception:
Just 64 percent of those surveyed said that in-store experience had met their expectations and while a majority of customers left the store having their expectations met, only a small percentage (less than 20 percent) cited that the experience improved their perception of their service provider.
“A bad shopping experience in any channel will turn away customers and no company can afford to lose a customer intent on making a purchase” said Seth Nesbitt, vice president of product marketing for Amdocs. “With transactions becoming more complicated and devices more sophisticated, store reps need tools that let them to focus on meeting a customer’s specific needs, while reducing the time to complete a transaction. Only then can they maximize every retail interaction.”
The survey was conducted by an independent global research firm in September 2009. In addition, Amdocs also announced the general availability of its Retail Experience Solution, part of its CES product portfolio.
About Amdocs CES
Amdocs CES (customer experience systems) is an integrated portfolio that delivers the operating environment service providers need to transform from providers of utility voice, data and video services into purveyors of the digital lifestyle. Amdocs CES allows providers to deliver an optimal customer experience–personalized, participatory and timely across any service, location and device. The Amdocs CES Portfolio leverages Amdocs business process best practices based on real-world scenarios, and transcends traditional business support systems (BSS), operational support systems (OSS) and service delivery platforms (SDPs) to enable service providers to address both current and emerging customer experience business processes. Amdocs’ unique business model focuses on enabling its customers to create differentiation and build brand, loyalty, profitability and competitive leadership. Please visit www.amdocs.com/cesportfolio for more information.
About Amdocs
Amdocs is the market leader in customer experience systems innovation, enabling world-leading service providers to deliver an integrated, innovative and intentional customer experienceTM at every point of service. Amdocs provides solutions that deliver customer experience excellence, combining the software, services and expertise to help its customers execute their strategies and achieve service, operational and financial excellence. A global company with revenue of $3.16 billion in fiscal 2008, Amdocs has approximately 17,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at www.amdocs.com.
Forward looking statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business segments it serves, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future, however the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company’s filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2008, filed on December 8, 2008, and in our quarterly 6-K furnished on February 9, May 12, and August 10, 2009.
Source: Amdocs