SAN FRANCISCO: Seven in ten consumers around the world would consider changing a service provider because of a disconnected experience, according to a new study which also suggests consumers are open to the idea of banking with the tech giants.
Consumer Connectivity Insights 2018, from integration software company MuleSoft, was based on a global survey of 8,019 adults across the UK, US, Germany, Netherlands, Australia and Singapore.
This found that four out of five consumers believe that organizations in at least one of four sectors surveyed provide a disconnected experience; government (66%) was most at fault in this regard but insurance (58%), retail (56%) and banking (55%) were not far behind.
And because of that, more than two-thirds (69%) would consider changing a service provider, with younger consumers being the least tolerant: 76% of 18-34 year olds said they would think about changing.
The study further revealed that all categories are roughly equal risk, although consumers were most likely to consider changing retailers (57%), closely followed by insurance providers (56%), and banks (51%).
Interestingly, given the much trumpeted concerns about how tech companies collect and use personal data, one third (34%) of global consumers said they would consider using the likes of Amazon, Google, or Facebook rather than a traditional bank. Again, millennial consumers (52%) were most open to the notion.
Simplicity and convenience (42%) were by far the most important reasons that consumers would consider a Google or a Facebook banking service. Just 23% cited a more personal service, 17% better security and 16% the user interface.
The length of time it takes traditional banks to work through processes such as opening an account or applying for a credit card was a particular bugbear for consumers, who find they are often asked to re-submit or re-state information that they had previously provided.
“Millennials especially are increasing the pressure on organizations to provide a connected experience, yet it is clear many organizations are still falling short,” said Ross Mason, founder and vice president of product strategy, MuleSoft.
“For example, nearly half of consumers say they gave up on an activity or request when information sharing with an organization was too difficult.”
But, he added, there are potentially huge rewards for businesses that can successfully link systems, devices and data “as they’ll unlock new ways to increase customer acquisition, retention and spend”.
Sourced from MuleSoft; additional content by WARC staff