Perks lure one in five utility customers but more than half are not tempted
One in five UK consumers base their choice of service providers – such as telecoms providers and utilities – solely on the perks and benefits they offer, according to research findings from Echo Managed Services.
The research, found that a quarter of all consumers were significantly influenced by perks and benefits offered by businesses, with one in five remaining loyal to a provider for this reason. But 53% of those polled said they were not swayed by perks.
Offering additional perks can boost brand reputation; 10% of respondents to the survey said extra benefits upped significantly their view of a company, while 7% said they remember a brand based on the perks the firm offered.
Another 4% of respondents said they were with a provider because of its perks. But 17% explicitly said perks annoyed them.
Head of sales and marketing at Echo Managed Services, Chris Cullen, warned that the gains to be had from handing out perks depended on their being well targeted and timed. “Evaluating key customer touch points, such as bills, and utilising customer behavioural data can really help here,” Cullen said.
But with more than half of the customers polled saying they were unaffected by perks Cullen warned: “Brands mustn’t put all their customer acquisition and retention efforts into shiny benefits packages,” and emphasised the need for sound service.