Pissed-off consumers can cost Indian companies over $400 billion every year

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Image: Reuters/Danish Siddiqui
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Indian customers are among the most unforgiving in the world, and they’re costing some companies a lot of money.

Nearly 88% of Indian consumers have switched brands or service providers in the past year, frustrated by poor service, according to a survey conducted by consulting firm Accenture. Almost 25,000 people in 33 countries were interviewed. Indians topped the list when surveyed on their willingness to switch brands.

Such switching leads to an astounding $412 billion in business losses every year for Indian companies, the fourth highest amongst the countries surveyed.

In India, internet service providers, retailers, and banks are the “worst offenders,” when it comes to putting customers off, according to Accenture. The report surveyed industries such as retail, healthcare, life insurance, gas and electricity providers, cable television providers, among others.

In India, 54% of those surveyed, prefer interaction with real people instead of interactive recorded voices, while 51% prefer going to a store to resolve a service glitch.

“Companies abandon the human connection at their own risk,” said Raghuram Devarakonda, managing director, advanced customer strategy, Accenture.

Meanwhile, up to 63% of Indians surveyed also said they would pay more for better service. That’s the sixth highest among the countries surveyed by Accenture and much higher than the global average of 49%.