Switching and consumer scepticism

One in seven UK adults do not believe that switching their every day service providers (e.g. utilities or insurance) makes any lasting difference, classing themselves as "switching sceptics".

The new research which Echo commissioned comes after an investigation by the UK Competition and Markets Authority (CMA) into whether price comparison websites are working in people’s best interests.

1,000 UK adults were included in the research, and 58% told us they noticed no significant financial benefit after switching their service provider. What's more, only 19% reporting improved customer service from their new supplier and just one quarter said they are actually happier having made a supplier switch.

The report also found that 34% of UK consumers regularly switch providers with the energy sector experiencing most switching (38% switched in the last year) and credit cards the least switchers (just one in seven).

Survey respondents told us that money/price remains the number one switch motivator, however consumers do often expect large savings in order to make the process worthwhile. With the expectation of big savings fuelled by price comparison site advertising, it's not surprising that the relatively meagre returns are leading to a rise in scepticism.

These findings can only further incentivise service providers to differentiate to retain their customers, using better customer service, transparency, ethical principles and non financial perks and benefits to provide customers with the type of long-term added value that leads to loyalty.