Increased customer loyalty and satisfaction, recommendations, positive reviews, and brand ambassadors – these are a few tremendous benefits that represent why you should invest in customer experience.
Customer Experience (CX)
What is CX? It refers to the holistic perception customers have towards your brand/business.
CX is the result of every interaction that a customer experiences with your business, from social media to your website and other touchpoints.
It also involves the overall experience of customers from the time they inquired about your offer to the very end of the transaction.
And what does this mean exactly? Every action you take impacts customer perception, behavior and decisions and is likely to determine whether customers will come back.
The more positive experiences customers have, the more likely they’re buying again, becoming brand ambassadors, making recommendations and leaving positive reviews for your business.
A happy customer is likely to be a loyal customer: one that will promote and recommend your business to their networks.
Already, that will save you money in marketing because proud and loyal customers are essentially free marketing for your company.
Imagine: customers spread good word about you and bring in new customers. These people advocate for your brand because of the positive and memorable experience they had.
Now, onto the key stats that prove how valuable CX is for businesses.
- By giving customers a pleasant experience, which makes their lives easier and happier, you can gain more business. According to the XM Institute, loyal customers are 5 times more likely to buy again and 4 times more likely to refer a friend to a business.
- According to the Harvard Business Review, it’s 5 to 25 times more affordable to retain customers than to acquire new ones.
- More than 50% of customers are willing to spend more on brands and businesses that improve CX, according to Salesforce.
- 83% of customer-centric businesses that believe in the importance of making customers happy also increase revenue.
- If customers are concerned about a company’s security practices, 83% of them will not do business with that company.
- According to Salesforce, 67% of consumers have raised standards in terms of customer experience expectations. If a company doesn’t personalize its communication, 52% of customers are likely to switch to a different brand.
- If customers have a bad experience, 39% of them are likely to stay away for up to two years after a transaction.
- 84% of companies that improve customer experience report revenue growth, according to Dimension Data.
- As opposed to customers that had a negative experience, those that have a positive experience are likely to spend 140% more on a business.
- According to this 2018 Customer Service Trends report, 69% of US consumers spend more on brands offering pleasant experiences, online and in-store.
- A pleasant experience will likely result in another transaction due to the positive perception that customer now has of that business.
- If a company has a great service reputation, US consumers will pay 17% more to purchase from it.
- Customer experience initiatives lead to an average of 20% in employee engagement.
- Increased financial value is another benefit of improving CX. The top 10 most empathetic businesses increased in financial value at least twice as compared to the bottom 10, according to a report from the Harvard Business Review.
- 59% of companies with a CEO involved in customer experience reveal higher growth in revenue versus only 40% of those without a customer-centric CEO reporting growth.
- Companies earning $1 billion annually will earn $700 million within three years of investing in CX.
- Loyal customers are likely to buy 30% more items per transaction versus a first-time customer.
- If your customers are engaged, you have the chance to gain 23% more profit, growth potential and revenue when compared to stats from an average customer.
- A company offering personalized experience is likely to increase its revenue, according to this source. In fact, 80% of customers report doing a business with a company that knows what they want and need and personalize their offers.
- According to Wunderman, 63% of customers say the best brands are those exceeding their expectations.
What CX stats are telling us?
With the emergence of technology and ways customers can access information, customers now have the power. They have almost limitless options to learn about your business and ways you interact with and treat customers.
“A shift of power from businesses to customers results in higher expectations.”
Product or price is also no longer what customers use as their basis for loyalty; instead, their experience is what matters most. Customers stay loyal to companies that create positive, memorable experiences that make them want to come back for more.
How do you keep loyal customers? Invest in customer experience and gain a better understanding of what your customers want and need. Ensure you’re identifying each touchpoint along their journey and improve it. Be ready to analyze trends to observe customer sentiments towards your brand. Finally, develop a customer experience strategy that fits your organization.
Need more info in developing a suitable CX strategy? I’d be glad to help. Contact me today!
In love and respect,
Founder & CEO, Corna Partners