NEWS: Leaders failing to address reputational risks
Business leaders (CMOs, CEOs and CCOs) are failing to address commercial and reputational risks affecting businesses, according to new research by Thunderhead.
The study highlights the size of the commercial and reputational risks affecting businesses as the result of poorly managed relationships with customers. Three quarters of leaders admitted that they didn't know how to build customer engagement, while two-thirds have no customer strategy in place.
Businesses are faced with three key challenges:
Firstly, 25 per cent of customers believe brands have failed to improve their handling of customer relationships in the last three years.
Meanwhile, customers are quicker to judge businesses critically and are less willing to forgive poor customer experiences that fail to meet their expectations. With 30 per cent of customers sharing a bad experience online, on the phone or in person, and each detractor sharing their negative experience with an average of 18 people.
Finally, customers are more prepared to act decisively when their relationship with a business takes a turn for the worse. One in six customers will switch provider after just one negative experience. Plus, it takes 24 per cent of individuals more than a year to re-establish trust with a company after a mistake, and a similar number (23 per cent) said they would never trust the company again.