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BizReport : Mobile Marketing : January 27, 2015

Study: Switching economy could cost US brands $1 trillion

American's are always on - PCs and laptops, smartphones and tablets - and that always on trend means digital brands are struggling to keep pace. That struggle, which consumers see as slow loading page loading times or areas where they have no Wi-Fi or 4G service, is costing digital brands nearly $2 trillion dollars because when consumers can't get online they are looking to switch providers.

by Kristina Knight

Accenture has released a new study that underlines the importance of a new trend: the switching economy. This is the state in which consumers will switch providers or even change their spending habits. According to their data the switching economy has increased nearly one-third since 2010 and is now sitting at $1.6 trillion.

"There is a $1.6 trillion market in the United States just waiting to be tapped, so one would expect a rush of companies seeking growth from it. Instead, many established companies are reacting too slowly to the needs of today's 'non-stop customers', and consequently, they are seeing both a customer exodus and a decrease in their revenue potential," said Robert Wollan, senior managing director, Accenture Strategy. "While many companies have been chasing the opportunity digital brings, they have not addressed the root causes of the problems that are exposed when they don't execute well. Companies have been focused only on 'doing the same things better' when these issues really require them to 'do things differently'."

Some interesting takeaways from the report include:

• 56% of consumers say they've 'increased considerably' the number of brands they consider
• 46% report they're more likely to switch providers now than 10 years ago
• 78% look to at least 1 online channel when comparing providers

"Today's customer's sense of loyalty to an existing provider is often eclipsed by a competitor's personalized and tailored experience," said Kevin Quiring, managing director, Accenture Strategy. "Our research shows that some companies are opening the door to 'non-traditional' competitors who are often more willing to 'do things differently' and offer prospective customers more opportunities for customization."

Image via Shutterstock

Tags: Accenture, mobile consumer trends, mobile marketing, mobile trends, switching economy

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