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Great Expectations: Are service expectations really rising?

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Ipsos MORI has combined the findings from existing and new research to explore the link between customer satisfaction at a particular service interaction and the customer’s relationship with that brand.

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Great Expectations: Are service expectations really rising?

  1. 1. © 2017 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos. Great Expectations | November 2017 | Version 1 | Public 1 IPSOS MORI Are service expectations really rising? GREAT EXPECTATIONS
  2. 2. 2Great Expectations | November 2017 | Version 1 | Public Delivering a positive experience Those who had a positive experience that was better than expected were more than twice as likely to increase their brand favourability than those who had a positive experience that was only in line with or worse than expectations (41% v 17%). alone is not sufficient to increase brand favourability if it is only in line with expectations
  3. 3. 3Great Expectations | November 2017 | Version 1 | Public 3% 4% 31% 56% 79% 59% 41% 17% 10% Expectations have a key part to play in views of brands 12% 23% 64% 69% 67% 32% 19% 10% 4% Better than expected In line with expectations Worse than expected Better than expected In line with expectations Worse than expected Brand favourability decreased Brand favourability stayed the same Brand favourability increased Changes in brand favourability after a POSITIVE experience Changes in brand favourability after a NEGATIVE experience Ipsos MORI (2016) Base Better than expected (n=2388 experiences), In line with expectations (n=1482 experiences), Worse than expected (n=87 experiences),22-30 August 2016, GB adults, online, UK Ipsos MORI (2016) Base Better than expected (n=282 experiences), In line with expectations (n=830 experiences), Worse than expected (n=1566 experiences), 22-30 August 2016, GB adults, online, UK Whether an experience is in line with expectations is as important as delivering a positive experience
  4. 4. Great Expectations | November 2017 | Version 1 | Public 4 59% of customers said they are willing to accept one-off examples of poor service and forgive mistakes from a brand that they think highly of…
  5. 5. 5Great Expectations | November 2017 | Version 1 | Public Consumers say that a stronger brand generates some form of goodwill, which makes them more likely to forgive future mistakes… 23% 36% 20% 11% 9% I am extremely willing to accept one-off examples of poor service and forgive mistakes I am somewhat willing to accept one- off examples of poor service and forgive mistakes My tolerance for poor service is no different to a brand I think less highly of I tend to expect a higher level of service from them and am somewhat less forgiving of poor service I expect a high level of service from them every time and am less forgiving of poor service Ipsos MORI (2016) Base 3,001 UK adults, online
  6. 6. 6Great Expectations | November 2017 | Version 1 | Public For brands that customers rated favourably before an experience, almost 90% of interactions that were worse than expected led to a fall in favourability after the interaction, regardless of consumers’ stated attitude towards forgiveness …but people may be less forgiving than they think
  7. 7. 7Great Expectations | November 2017 | Version 1 | Public Having a strong brand seems a poor defence if an encounter is worse than expected 9 Our data shows that even for those who started off favourable towards a brand, almost half (46%) became unfavourable after a worse-than- expected interaction. Favourability before the experience 5. Very favourable 4. Favourable 5. Very favourable 4. Favourable 1. Very unfavourable2. Unfavourable3. Neutral Favourability after the experienceIpsos MORI (2016) Base 1653 experiences, 3,001 UK adults, online 46% of those who were favourable before experience
  8. 8. Great Expectations | November 2017 | Version 1 | Public 8 service outcome are both Personalisation and the final critical drivers of why an encounter might exceed or fall short of customer expectations
  9. 9. 9Great Expectations | November 2017 | Version 1 | Public 0 5 10 15 20 25 30 35 40 45 50 Customer focus/personalistion of the experience Customer effort Previous experience with another company Previous experience with same company Experience vs. advertising Friendliness/politeness of staff The website/telecom system Kept/not kept informed Value for money Cost Condition of goods/product Accuracy Timings/speed Experience met/didn't meet needs Personalisation and the final service outcome are both Experience better than expected Experience worse than expected critical drivers of exceeding or falling short of expectations Which two or three of the following statements, if any, best explain why your experience was more positive/worse than you had hoped? Ipsos MORI (2016) Base 3,001 UK adults, online Experiences: better than expected (n=1653 experiences), worse than expected (n=2670 experiences) % DELIVERY COST INFORMATION STAFF EXPECTATIONS
  10. 10. 10Great Expectations | November 2017 | Version 1 | Public 31 34 34 34 35 35 38 39 41 42 42 44 50 51 69 66 66 66 65 65 62 61 59 58 58 56 50 49 Hotel Insurance PublicService Mobile operator Broadband Airline Electricity/ Gas Cardealer/ Garage Courier/ Delivery Restaurant Train company Bank Online retailer Store/ Supermarket Some sectors find it harder than others to delight Exceeded expectations Did not meet expectations Ipsos MORI (2016) Base 1653 experiences, 3,001 UK adults, online Experiences: Hotel (n=552), Insurance (n=149), Public service (n=210), Mobile operator (n=401), Broadband (n=267), Airline (n=325), Electricity/Gas (n=149), Car Dealer/Garage (n=167), Courier/Delivery (n=183), Restaurant (n=218), Train company (n=104), Bank (n=518), Online retailer (n=396), Store/supermarket (n=345) consumers, perhaps as a result of high expectations… %
  11. 11. Great Expectations | November 2017 | Version 1 | Public 11 40% think that public services have got worse over the last five years (compared with 33% in 1998) BUT 18% state that public services exceeded their expectations in 2016 (compared with just 5% in 1998) Source: The State of the State 2016-17, Ipsos MORI and Deloitte (2016) Base: 1,099 GB adults 15+, July 2016 Public service expectations may have actually fallen…
  12. 12. © 2017 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos. Great Expectations | November 2017 | Version 1 | Public 12 Expectations ‘leak’ between more competitive services more easily as there are closer experiences to compare against. These sectors are more at risk of their customers’ expectations being influenced by experiences of other companies
  13. 13. 13Great Expectations | November 2017 | Version 1 | Public More competitive and rapidly changing sectors seem to 16 8 3 26 33 18 Airline Train company Public service % With a different company With the same company Customers citing previous experiences as a reason why service encounter failed to meet expectations… be more at risk of leaking expectations Ipsos MORI (2016) Base 3,001 UK adults, online Experiences: Airline (n=160 experiences), Train company (n=101 experiences), Public service (n=117 experiences) Airlines are five times as likely as public services to have experiences with competitors cited as a reason why a service encounter failed to meet expectations
  14. 14. Great Expectations | November 2017 | Version 1 | Public 14 With the growth of technology, consumers’ expectations are influenced by a much wider body of prior experiences than before, beyond directly comparable sectors, and should mean there is more of a focus on ‘liquid expectations in the future liquid expectations
  15. 15. Great Expectations | November 2017 | Version 1 | Public 15 Thank you.

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