As Henry Ford says – “It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages.”
As customer expectations rise and consumers become more demanding than ever, customer experience has become more important than ever. Along with the value that the product itself brings, the ‘experience’ too plays a key role in building a successful business relationship.
The focus of customer experience has evolved too, in the last couple of years. While the emphasis was initially on creating customer delight, converting, and retaining customers; today, there is increased focus on aligning strategy, process, and culture to manage customers’ lifecycle expectations.
Here are some numbers that highlight importance of Customer Experience:
According to the Gartner Customer Experience in Marketing Survey, 81% of leaders responsible for customer experience (CX) say their organizations will mostly compete on the basis of CX in two years. From the same study, only 22% say their CX efforts have exceeded customer expectations.
Guess what is the most exciting opportunity for companies to indicate the single most exciting opportunity for their organization in the upcoming year? Yes, it is customer experience – as reported in 2020 Digital Marketing Trends survey.
Customer service shouldn’t just be a department, it should be the entire company.
While these are interesting numbers, what does it take to deliver a rich experience to your customers? More interesting statistics on this:
Every company needs to understand their customers’ needs, so as to elevate their satisfaction and loyalty. According to Mckinsey, a change of mind-set focusing on the customer, can generate a 20 to 30 percent uptick in customer satisfaction. A recent study by Forrester shows that organizations that take CX seriously have 1.6x higher customer satisfaction rates.
Since CX marks its presence in all departments, businesses need to integrate data sets between their tools and break down the walls between business silos. Customer Experiment Management software is an important platform that allows you to gather input from your market, so you understand what the customer expects. In order to be successful, 52 percent of professionals believe that a Chief Customer Experience Officer is required to run a CXM.
To deliver on their customer experience management goals, 55% companies pay heed to more effective audience segmentation and targeting, as shown in Adobe Digital.
Gartner says 25% of Customer Service Operations will use virtual customer assistants by 2020. Also, by 2022, the usage of IT by customer experience professionals will go up from 50% in 2017. CXM strategies that include integrated, cloud-based technology stacks are likely to be implemented by Customer experience leaders, four-and-a-half times more than other companies.
63% of customers are okay getting support from a chat-bot, as long as there is human intervention if needed, says Forrester. Robotic automation and AI are projected to be the go-to model for future CX, virtual assistants will go up to 61.5% as reported by 2019 Global CX benchmarking report. 8 out of 10 businesses have already implemented or are planning to adopt AI as a customer service solution by 2020,as per Oracle.
What does data privacy has to do with improving customer experience? Well, According to a survey report by Salesforce, 62% of customers say they are skeptical to share their data at the risk of being compromised and 57% of customers are uncomfortable with how companies use their personal or business information. Companies need to take privacy seriously and gain trust right from the start to access valuable personal details to enhance customer experience. The recent Facebook fiasco is one example that drive home the message that data privacy is no joke and should be taken seriously to keep your customers close.
This is trending at a pace like never before. 75% of customers are more likely to make a purchase from a company that knows their name and purchase history and recommends products based on their preferences. 67% of consumers say they research products online before shopping for them in outdoor stores.
59% online shoppers believe that it is more convenient to find interesting products on personalized online retail stores, according to Invesp, while 56% of online shoppers are more likely to return to a site that recommends products.
RedPoint Global and Harris poll backs the above the statement by revealing that customers are expecting an ever-increasing level of personalization and control while companies struggle to meet those expectations. 63%of consumers expect personalization as a standard of service and 52% feel like a company recognizes them as an individual when they are sent unique special offers.
Companies with the strong personalization customer engagement strategies retain an average of 89% of their customers, compared to the 33% for companies that don’t prioritize customer engagement. 71% of shoppers on average express some level of frustration when their experience is impersonal, while 49% of shoppers engage in impulsive shopping based on the suggested products that increase the company’s profit.
Personalization can be further categorized into:
- Mobile Personalization: 57% of internet users say they won’t recommend a business with a shoddily designed website on the mobile. 52% of all internet traffic now comes from mobiles, with desktop usage becoming obsolete. Sixty-one percent of users are unlikely to return to a mobile site they had trouble accessing and 40% of users will go to the competitor after a bad mobile experience.
- Social Media & Email: Email is a critical customer service medium. A study from inContact revealed that just 43% of customers were highly satisfied with their most recent email customer service interaction. The average company takes 12 hours and 10 minutes to respond to an email. Over 50% of businesses offer online chat/video, SMS, social media and 21% of customers studied rate & review personalized service a top priority compared to 13% of businesses. 60% prefer email, 58% prefer phone, 48% prefer live chat, 24% prefer SMS/ text, and 18% prefer social media. The Customer Experience Index found that 49% of customers are likely share a positive experience that they’ve had with you on social media; only 30% will share a negative experience.
- Website : 88% of online consumers are less likely to return to a site after an unpleasant experience says Sweor. As per pew Internet survey,92% of online adults use search engines to find information on the web, while 59% do so during a typical day, which means users expect the same functionality from every brand site. 85% of adults believe that a company’s mobile website should be given the same importance as a desktop website.
- Self Service Capabilities: A recent consumer survey found that 75% customers said self-service is a convenient way to address customer service issues. 67% of respondents said they preferred self-service over speaking to a company representative. While customers are eager to embrace their favorite brands’ online self-service capabilities, another study by Coleman Parkes shows that 91% of customers would use an online knowledge base if it were available and tailored to their needs. 40% of customers contact a call center for answers to their questions via self-service.
Customer experience is the key to bring in new business and increase revenues. 71% of consumers want a consistent experience across all channels, but only 29% say they actually get it. 43% of all consumers would pay more for greater convenience; 42% would pay more for a friendly, welcoming experience. Two-thirds of global CEOs will start focusing on digital strategies to improve customer experience by the end of 2019. In a transaction-based business, customers who had the best past experiences spend 140% more compared to those who had the poorest past experience.
According to Bain & Company, a company’s profit can go up by 25% to 95% if they generate a 5% increase in customer retention.86% of customers will pay a higher price for a better experience. Nearly 60% of those surveyed found customer retention rate to be a “useful” customer experience criterion.
97% say poor customer service negatively impacts consumer purchases while 87% say good customer service boosts purchases. 46% continue to change their buying behavior two years after a bad customer service experience. 56% of customers actively seek to buy from the most innovative companies.
In 2020, customer experience has taken over price and product as the key brand differentiator. Investing and understanding the need for happy customers is inevitably essential, as, “Happy customers’ equal a Happy Business.”