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NewVoiceMedia reveals nearly half of UK consumers ditched a business last year following poor customer service

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NewVoiceMedia reveals nearly half of UK consumers ditched a business last year following poor customer service

Brands are failing to create the positive, emotive experiences that drive customer loyalty

New research from NewVoiceMedia, a leading global provider of cloud contact centre and inside sales technology, reveals that 42 percent of UK consumers left a business last year due to poor customer service. For millennials (those aged 25-34), this increased to 53 percent.

The survey, based on independent research among 2,011 adults from the United Kingdom¹, found that top reasons for leaving included: feeling unappreciated (36 percent), not being able to speak to a person (26 percent) and being passed around to multiple agents (25 percent). Seven percent had such low expectations of the customer experience that they didn’t even bother contacting support about their service issue before switching companies.

63 percent of respondents said that if they felt they’d made a positive emotional connection with a customer service agent, they’d be more likely to do business with that company again. However, on average, consumers felt emotional connections with just 13 percent of companies they’d done business with over the last year.

Calling out the contact centres

35 percent indicated emailing as their preferred method of communication with a business, with nearly half (48 percent) considering calls to be the quickest way of resolving an issue. However, consumers flagged being kept on hold as the top reason (34 percent) they dislike calling companies.

Consequently, only 16 percent suggested calls were the most effective way of resolving an issue. Social media was touted as equally effective in settling customer service issues (16 percent), followed by email (12 percent).

How customers respond

Faced with poor customer service, 41 percent would write a complaint email/letter, 31 percent would never use the offending company again, 29 percent would change suppliers, a fifth would post an online review and a further 20 percent would complain publicly via social media. Only 15 percent would take no action.

On the contrary, if provided with good service, respondents would be more loyal (55 percent), recommend the company to others (47 percent) and use the business more frequently (26 percent).

In an era of empowered and ultra-connected consumers, being able to contact a company through any channel was rated as the top driver of feeling emotionally connected to a brand (31 percent). This supports research from the Aberdeen Group, which found that companies that excel in engaging customers across channels can retain nearly three times as much business as those without an omni-channel strategy².

“With revenue being transferred between companies at an alarming rate, this research shows how those that compete on the basis of customer delight can drive the acquisition, retention and efficiency that make leading businesses successful”, comments Dennis Fois, CEO of NewVoiceMedia.

“In today’s Age of the Customer, personal, emotive customer interactions play a critical role in bridging the gap for what disruption and digital innovation alone cannot solve. For brands to compete – and win – in CX in 2018 and beyond, service leaders must ensure their teams optimise processes and communication in ways that create positive emotional experiences for customers”.

Martin Hill-Wilson, customer engagement strategist and founder of Brainfood, said, “Emotive customer experience recognises that our decisions are driven by deep seated motivations: the things that really matter to us in terms of identity and personal fulfilment. Tap into these, and customers become more valuable in every respect: from advocacy to lifetime spend”.

Business

Sunak to raise business tax to pay for COVID-19 support – The Sunday Times

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Sunak to raise business tax to pay for COVID-19 support - The Sunday Times 1

(Reuters) – British finance minister Rishi Sunak is set to increase a tax on business to pay for an extension to COVID-19 support schemes in the budget next month, The Sunday Times reported https://bit.ly/3ujaBcU.

Sunak, in his speech on March 3, will announce he is increasing corporation tax from 19 pence in the pound and will outline a pathway where it rises to 23 pence in the pound by the time of the next general election, the report said. The move will raise an expected 12 billion pounds ($16.8 billion) a year, the report added.

According to the report, at least 1 pence is set to be added to the bill for business from this autumn, at a cost to business of 3 billion pounds, with further rises in subsequent years.

Allies of Sunak clarified he would not increase corporation tax higher than 23%.

These measures will be helpful in paying for an extension to the furlough scheme, VAT cuts and business support loans until at least August.

Unlike the 2010 Conservative-led government, which pursued spending cuts to rebalance the economy after the global financial crisis, Sunak is expected to defer most of the toughest decisions about how to pay for that support in his budget speech.

“The corporation tax hike will be higher than expected and the extension of the support schemes will be longer than most people expect,” the newspaper quoted a source as saying.

Insiders indicated the stamp duty holiday on property purchases would also be extended in line with the other coronavirus support measures, the report said.

Britain’s economy had its biggest slump in 300 years in 2020, when it contracted by 10%, and will shrink by 4% in the first three months of 2021, the Bank of England predicts.

($1 = 0.7136 pounds)

 

(Reporting by Vishal Vivek in Bengaluru; Editing by Lincoln Feast.)

 

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Foxconn chairman says expects “limited impact” from chip shortage on clients

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Foxconn chairman says expects "limited impact" from chip shortage on clients 2

TAIPEI (Reuters) – The chairman of Apple Inc supplier Foxconn said on Saturday he expects his company and its clients will face only “limited impact” from a chip shortage that has rattled the global automotive and semiconductor industries.

“Since most of the customers we serve are large customers, they all have proper precautionary planning,” said Liu Young-way, chairman of the manufacturing conglomerate formally known as Hon Hai Precision Industry Co Ltd

“Therefore, the impact on these large customers is there, but limited,” he told reporters.

Liu said he expected the company to do well in the first half of 2021, “especially as the pandemic is easing and demand is still being sustained.”

The global spread of COVID-19 has increased demand for laptops, gaming consoles, and other electronics. This caused chip manufacturers to reallocate capacity away from the automotive sector, which was expecting a steep downturn.

Now, car manufacturers such as Volkswagen AG, General Motors Co and Ford Motor Co have cut output as chip capacity has shrunk.

Counterpoint Research says the shortage has extended to the smartphone sector, with application processors, display driver chips, and power management chips all facing a crunch.

However, the research firm predicts Apple will face a minimal impact, due to its large size and its suppliers’ tendency to prioritise it. Apple is Foxconn’s largest customer.

Foxconn is looking at other areas for growth, including in electric vehicles (EVs), and Liu said their EV development platform MIH now had 736 partner companies participating.

He expected it would have two or three models to show by the fourth quarter, though did not expect EVs to make an obvious contribution to company earnings until 2023.

Liu also said the company was still looking for semiconductor fab purchase opportunities in Southeast Asia after not winning a bid to take over a stake in Malaysia-based 8-inch foundry house Silterra.

(Reporting by Ben Blanchard and Jeanny Kao; Writing by Josh Horwitz; Editing by William Mallard and Ana Nicolaci da Costa)

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EU seeks alliance with U.S. on climate change, tech rules

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EU seeks alliance with U.S. on climate change, tech rules 3

By Sabine Siebold and Kate Abnett

BERLIN (Reuters) – Europe and the United States should join forces in the fight against climate change and agree on a new framework for the digital market, limiting the power of big tech companies, European Union chief executive Ursula von der Leyen said.

“I am sure: A shared transatlantic commitment to a net-zero emissions pathway by 2050 would make climate neutrality a new global benchmark,” the president of the European Commission said in a speech at the virtual Munich Security Conference on Friday.

“Together, we could create a digital economy rulebook that is valid worldwide: a set of rules based on our values, human rights and pluralism, inclusion and the protection of privacy.”

The EU has pledged to cut its net greenhouse gas emissions to zero by 2050, while President Joe Biden has committed the United States to become a “net zero economy” by 2050.

Scientists say the world must reach net zero emissions by 2050 to limit global temperature increases to 1.5 degrees above pre-industrial times and avert the most catastrophic impacts of climate change.

The hope is that a transatlantic alliance could help persuade large emitters who have yet to commit to this timeline – including China, which is aiming for carbon neutrality by 2060, and India.

“The United States is our natural partner for global leadership on climate change,” von der Leyen said.

She called the Jan. 6 storming of the U.S. Capitol a turning point for the discussion on the impact social media has on democracies.

“Of course, imposing democratic limits on the uncontrolled power of big tech companies alone will not stop political violence,” von der Leyen said. “But it is an important step.”

She was referring to a draft set of rules unveiled in December which aims to rein in tech companies that control troves of data and online platforms relied on by thousands of companies and millions of Europeans for work and social interactions.

They show the European Commission’s frustration with its antitrust cases against the tech giants, notably Alphabet Inc’s Google, which critics say have not addressed the problem.

But they also risk inflaming tensions with Washington, already irked by Brussels’ attempts to tax U.S. tech firms more.

Von der Leyen said Facebook’s decision on a news blackout on Thursday in response to a forthcoming Australian law requiring it and Google to share revenue from news underscored the importance of a global approach to dealing with tech giants.

(Additional reporting by Foo Yun Chee; editing by Robin Emmott and Nick Macfie; editing by Jonathan Oatis)

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