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‘Techno-Rage' threatens UK business

‘Techno-Rage’ threatens UK business
New findings highlight dangers of waning customer loyalty as big business blamed for technology-based service failures

London – June 28th 2005 – The reputation of big business, from high street banks to mobile phone companies, is on the line as frustration with poor technology-based service gets the better of the British public. New independent research commissioned by service management company Tertio SMS (www.tertio-sms.com), shows that a large number of consumers (45%) are experiencing ‘techno-rage’, an acute level of annoyance with organisations over technology hitches in service delivery.

The study reveals that technology-based service failure is a widespread problem. On a weekly basis nearly a quarter (23%) of the population find themselves unable to use services, such as cash machines, mobile phone networks or the Internet, when they want to. One in ten people encounter problems on a daily basis. Despite how common this is, consumers have extremely high expectations of service reliability, with more than three out of four (79%) expecting technology to work when they need it without fail.

With half of consumers laying the blame for technology mishaps at the door of the company delivering the service, regardless of whether they are at fault or not, the findings have serious implications for big business. Alan Greenberg, CEO of Tertio SMS, explains: “Whether customers are shopping online or making a mobile phone call, companies need to look beyond their systems in purely technical terms and recognise that IT failures are having a significant impact on their reputation.”

Greenberg continues: “Big business is being judged by a consumer-base that has rising expectations of service delivery. Techo-rage is significantly worse amongst young people, 85% of those aged between 18 and 24 expressing strong dissatisfaction with poor service delivery. Brought up in a 24x7 world, they have little patience for technology services that don’t work.

“Retailers, banks, utility and phone companies alike are getting the blame when technology systems go down. For every customer who complains about service delivery there are also many others who do not speak up. They bottle up their dissatisfaction, getting more and more annoyed until they take their business elsewhere. Techno-rage is fuelling this and big business is facing a serious threat from ‘silent attrition’ within its customer base.

“In addition, the reliability and safety of systems and the processes used to make sure service levels are met are all key compliance issues. Organisations must make sure they are properly monitoring their IT systems and understand how customers perceive their service delivery. If they don’t, they face not only growing consumer wrath but potential penalties for failing to act in accordance with industry standards.”

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About Tertio SMS
Tertio Service Management Solutions (SMS) has been providing solutions to blue chip companies for over a decade, empowering organisations to deliver customer service excellence. It provides a comprehensive range of innovative Business Service Management, Service Management, and Network and Systems Management solutions, combining industry leading software applications with its specialist consultancy and support.

Tertio SMS de-merged from Tertio in 2002 and is headquartered in London. A financially strong company with a proven track record, and seven consecutive profitable quarters, Tertio SMS has 40 employees, serving customers across Europe including T-Mobile, The Post Office, Sainsbury’s and Dixons.

For further information

Rebecca Dunstan/ Kate Hamilton at Portfolio Communications
rebecca.dunstan@portfoliocomms.com / kate.hamilton@portfoliocomms.com
020 7240 6959

ICM Research interviewed a random sample of 1014 adults aged 18+ by telephone between 24-26 May 2005. Interviews were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmresearch.co.uk