The analysts have launched the study for enterprise MPS in North America and Europe.
MPS Connect reported on the loyalty study in North America and Europe, with the study focused on enterprise MPS, with firms having “more than 1,000 employees” and being “increasingly saturated” with MPS. The increase means that “the importance of retaining existing clients and identifying clients of your competitors who are willing to switch becomes critical”, with North America alone seeing $8 billion (€7.6 billion) of the $11 billion (€10.4 billion) MPS market in “further penetrating existing accounts”.
Photizo added that only $3 billion (€2.8 billion) of the “total opportunity” is associated with “capturing ‘new to MPS’ accounts”, with the “maturity of the enterprise MPS market” meaning that “keeping customers is critical, but there is a catch”. The analysts’ research into MPS customer defection indicated that 33 percent of contract holders “are considering either switching MPS vendors or bringing their outsourced MPS project internal”.
The company pointed out that “with one third of the customer base open to change, it’s imperative that vendors understand whether this represents a threat”, in terms of their “customers switching to other vendors”, or an opportunity “to capture their competitors’ MPS customers who are considering switching”. The study, it noted, will launch in “early April”, and those signing up “by the end of January” will have the opportunity to “impact the study design and content”.
The study has been launched by Photizo to “assist clients in addressing this serious information gap”, as well as to “identify growth opportunities in competitors’ accounts by identifying the types of customers who are most likely to switch”. It begins with a “quantitative study of enterprise MPS customers in the USA, Canada, Germany, France and the UK”, followed by “in-depth interviews to understand the critical dynamics associated with satisfaction and switching behaviour”.
Ed Crowley, CEO of Photizo Group, commented: “Many vendors are making a serious error in assuming that their existing customer loyalty or satisfaction study is adequately identifying threats to their customer base. Without an understanding of how your customer satisfaction and loyalty compares to your competitors, it’s easy to overestimate the strength of your customer relationships.”