The “Switching Economy”

Accenture has a study which should startle every major brand

Despite having more data and insights into consumer desires and preferences, companies in the U.S. have failed to meaningfully improve customer satisfaction or reverse rising switching rates among their customers.  As a result, there is a potential $1.3 trillion of revenue at play in the U.S. market represented by the ‘switching economy’, according to Accenture’s analysis of consumer spend forecasts and switching rates.

They highlight retailers, telecom/cable, banks as the most vulnerable, but frankly every sector is at risk (and that includes Accenture).

After a decade of generally satisfactory experiences with Southwest Airlines, I have recently sent their CEO a letter saying I will be  spending dramatically less with them next year. Sneaky seating  changes, abysmal wi-fi, unfair charges, fewer nonstops all are factors.

Sure they will ignore me as the aviation consolidation has put airlines back in a seller’s market, but they ought to see what I did with Delta. I flew my second million miles with them between 94 and 97. The third million miles have taken me 17 years. It’s not that I was not flying. But I deliberately moved my business away from them.

Now, it’s Southwest’s turn to feel the switch. Delta’s Economy Comfort seating, JetBlue’s 12mbps ViaSat wifi, Virgin America’s digital cabin all beckon.

Way too many entities take their positions - and customers - for granted. The pole positions are fleeting.