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Groundbreaking study on IT industry shows competitive differences should involve people, not just productsGlobal authority in customer loyalty measurement releases 2002 National Customer Benchmark Study on IT customer loyalty and future industry trendsINDIANAPOLIS – Companies in the fast-paced information technology industry rely on progressive products and rapid innovation to drive growth and profits. However, results from a groundbreaking study on customer loyalty in the IT industry suggest future opportunities for competitive differentiation will be found in the people and service aspect of the customer experience. According to this national study, less than half (45 percent) of IT customers have positive perceptions of non-technical customer service.The 2002 National Customer Benchmark Study, conducted by Walker Information, measures customers’ attitudes and experiences with firms in five IT sectors – enterprise software, infrastructure software, network equipment, servers, and storage systems. Based on completed surveys from 2,259 IT decision makers, influencers and staff nationwide, the results showed less than half (47 percent) of IT customers are truly loyal – meaning they both want to and plan to maintain the relationship. What’s more, 29 percent are trapped – likely to continue doing business with the company, but not pleased with the relationship – and 21 percent are high risk - having low intentions of continuing and being unhappy with the relationship to date. Consistent with industry expectations, the results validate the common perception that IT buyers try to keep their options open even as switching barriers create a high percentage of trapped customers. Yet, the research suggests improving customer service and meeting customers’ needs are critical to building customer loyalty in the IT industry and differentiating themselves from competitors. Through evaluations of vendors in each of the five IT sectors, the study has identified current perceptions of customer loyalty and future trends in the industry, including: · Slightly more than half (54 percent) see the value offered by companies across the five IT sectors as being “excellent” or “very good”. · While four in five (80 percent) are “very satisfied” or “satisfied” with companies in this sector, only two-thirds (68 percent) rate the overall quality of suppliers’ products and services as “excellent” or “very good”. · Only a third know that these technology companies care about the community and society (29 percent), are highly ethical (36 percent) and treat employees well (30 percent) – more than half are either neutral or not sure. Walker Information Group Vice President Jeff Marr, a leading researcher on this study, explained the significance and business implications of this study for the IT industry. “While IT customers weren’t overwhelmingly loyal to their vendors in this study, this may be typical from an IT buyer perspective because they often feel they are at the mercy of the provider,” Marr said. “Being in tune with customers’ after-sale service needs, strategies and product usage cycles are key areas where IT companies would earn more customer loyalty.” Customer loyalty scores differed slightly by organization size, role in the company, and industry. Most notably, smaller organizations (less than 1,000 employees) tend to perceive a stronger value proposition in their IT investments. In addition, companies with more than 1,000 employees are likely to be more reliant on technology and have substantial financial investments in the relationship. Marc Drizin, vice president and loyalty specialist at Walker Information, cites the dynamics of the industry and future IT trends to support a strong focus on service and relationships. “Despite the ongoing focus on product quality and innovation, as IT becomes more of a commodity-based industry, customer requirements will move from products to service,” Drizin said. “And, quite simply, service is a challenge for this sector.” This study surveyed a nationally representative panel of IT decision makers, influencers and staff from business, non-profits, and government in the third quarter of 2002. The study measured customer loyalty to IT suppliers and future trends in the industry. Walker Information is a privately owned, Indianapolis-based company with offices throughout North America. A pioneer in measuring satisfaction and loyalty since the 1970s, Walker conducts stakeholder research in the critical areas of customer loyalty, employee commitment, corporate philanthropy and business ethics. For more information about Walker Information, visit the company’s website at www.walkerinfo.com or call 800.334.3939. Editorial Contact: Michael DeSanto Walker Information 317.843.8613 mdesanto@walkerinfo.com top of page |
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