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That is the question. Will Samsung take a hit in the customer loyalty/customer confidence department after the Galaxy Note7 recall?
According to a new survey from Branding Brand, a leading mobile ecommerce platform, the answer to that question is yes.
Consumer confidence was rattled following the Galaxy Note7 recall, according to the survey. Consider that 34% of current Samsung customers indicated they won’t buy another smartphone from the brand. Of these customers, 81% have always owned a Samsung or Android smartphone.
Following the Sept. 15 U.S. recall of the Galaxy Note7 — due to concerns over faulty batteries that may explode in these devices — Branding Brand surveyed 1,000 Samsung smartphone customers to understand consumer confidence and loyalty with the brand.
Samsung announced a voluntary recall and exchange program on certain Galaxy Note7 devices in cooperation with the U.S. Consumer Product Safety Commission (CPSC). The affected devices were sold in the U.S. before Sept. 15, 2016. Since the affected devices can overheat and pose a safety risk, it is extremely important to stop using the device, power it down, and immediately exchange it using the U.S. Note7 Exchange Program.
Customers who exchanged a Note7 device also received a $25 gift card, in-store credit, in-store accessory credit, or bill credit from select carrier retail outlets.
Here are some key survey findings:
Of the Samsung customers that will stay loyal to the brand, 77% said it’s because they don’t want to learn a new phone. Other reasons Samsung customers cited for staying loyal with the brand include:
Options to customize experience (44%)
Battery life (39%)
Dislike of other smartphone brands (28%)
“Samsung consumers say battery life is a key to their loyalty with the brand; however, it’s the same reason for the drop in confidence,” said Chris Mason, co-founder and CEO of Branding Brand. “Battery power is, and will continue to be, a big factor in smartphone technology development.”
Most Samsung owners who say they are ready to switch will choose another Android phone (57%), but many will move to iPhone (34%). Of current Samsung owners, 21% were previously iPhone owners.
Branding Brand’s online survey was conducted from Sept. 21-22, 2016, with 1,000 U.S. respondents ages 18-65, who currently own a Samsung smartphone.
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