In an age where consumers have more and more buying power, the Customer Experience (CX) has become one of the top competitive differentiators among brands in all industries.
As a result, it’s not surprising to see CX being discussed and researched so extensively. Customer expectations are evolving at a rapid pace, and brands are always seeking ways to deliver experiences that help their customers meet their needs and expectations and give their brand the upper hand on their peers.
However, the urgency of designing great experiences and putting the infrastructure in place to optimize their Customer Experience Management (CEM) efforts can sometimes be a tough sell internally. To do it right, it can require a lot of time, energy, resources and money to get buy-in from the right stakeholders, particularly from your C-Suite. Showing just how much the Customer Experience can impact the bottom line, however, can help you get the ball rolling.
To help you, we’ve gathered 19 eye-opening Customer Experience statistics that every CX professional needs to know in 2019, which show just how much the CX can impact your company’s bottom line in many different ways, and packaged them in the infographic below.
Note: If you want to easily share some of these stats or takeaways, we have also provided them below the infographic.
Customer expectations for the Customer Experience are at an all-time high
Brands are in a constant struggle to keep up with customer expectations, which are becoming harder to meet thanks to a combination of technology and data.
- 67 percent of customers say their standard for good experiences are higher than they’ve ever been1 (Click to Tweet!)
- 76 percent of customers say they expect companies to understand what they need and what are their expectations1 (Click to Tweet!)
- 64 percent of people find the Customer Experience to be more important than price when it comes to purchasing something2 (Click to Tweet!)
- $98B left on the table every year by companies who fail to provide experiences that consumers will find ‘simple’3 (Click to Tweet!)
- $1.6T is lost every year in the US because of poor customer service4 (Click to Tweet!)
Key takeaway: Brands must have the measures in place to confirm what their customers need and expect throughout the entire customer journey. Collecting customer feedback across all your touchpoints at critical moments in the customer journey is key.
Great CX helps boost your revenue (more quickly too)
It’s no surprise that companies offering great Customer Experience see their revenue grow faster than those who don’t put CX as a top priority.
- Experience-Driven Businesses, organizations that invest in transformation across people, process and technology disciplines, have an average annual revenue growth rate of 15 percent (vs. 11 percent for other companies).5 (Click to Tweet!)
- 67 percent of customers say they’ll pay more for a great experience1 (Click to Tweet!)
- 56 percent of consumers say that 'the overall enjoyment of their experience' is important in their decision to buy a product or service6 (Click to Tweet!)
- 74 percent of people will likely switch brands if they found the purchasing process too difficult.7 (Click to Tweet!)
Key takeaway: Sometimes, customers may be willing to open their wallets a little more if it means that they will receive a better and more pleasant experience down the line.
Great CX breeds customer loyalty and boosts customer retention
38 percent of consumers say they are more loyal now than they were two years ago8. Brands need to capitalize and further entice them to stay.
- Experience-Driven Businesses report between 1.6x – 1.9x higher YoY growth in customer retention, repeat purchase rates, average order value and Customer Lifetime Value (CLV) than other companies.5 (Click to Tweet!)
- 32 percent of customers stop doing business with a brand they love after only one bad experience9 (Click to Tweet!)
- 57 percent of customers have stopped buying from a company because one of their competitors provided a better experience1 (Click to Tweet!)
- 64 percent of consumers are more likely to recommend a brand to others if it offers simpler experiences and communications3 (Click to Tweet!)
Key takeaway: Every experience counts, and you need to act quickly to remedy poor experiences. It’s important to consider both the short-term and long-term impacts of great (or poor) CX.
Customer Experience also impacts word-of-mouth
It’s easier than ever for people nowadays to share their experiences (or horror stories) with others. Great CX helps to make sure people paint a good picture of your brand to others.
- Half of Experience-Driven Businesses see increased advocacy as an outcome of their experience investments5 (Click to Tweet!)
- 62 percent of customers say they share bad experiences with other people1 (Click to Tweet!)
- 71 percent of people recommend a product or service because they received a “great experience”10 (Click to Tweet!)
- 50 percent of Americans would choose word-of-mouth if they were asked to pick only one source of information10 (Click to Tweet!)
Key takeaway: There’s a lot of business at stake when it comes to the Customer Experience you are offering, whether it’s repeat business from existing customers, or new business from potential customers.
Putting the customer first benefits your organization as a whole
Focusing on customers first can lead to happier employees, which can lead to more effective and positive Customer Experience efforts.
- Organizations with a ‘cross-team approach with the customer at the heart of all initiatives’ are nearly twice as likely exceed their top business goals by a significant margin compared to other organizations (20 percent vs. 11percent).11 (Click to Tweet!)
- Experience-Driven Businesses see 1.5x greater personal satisfaction, 1.4x greater team satisfaction and 1.3x greater department satisfaction than other companies5 (Click to Tweet!)
Key takeaway: For your CX program to succeed, your entire organization must work as a team and have a culture of customer-centricity engrained in all of its efforts.
Customer Experience is an investment, and not just a buzzword
Adjusting your business to offer optimal customer experiences throughout the entire customer journey is a big endeavor. But in the grand scheme of things, it can be a worthwhile investment that gives you a valuable advantage over your competitors and boosts your bottom line in different ways.
Launching a Voice of the Customer (VoC) program across the entire customer journey empowers you to be customer-focused in your CEM efforts. Not only that, but it also helps you align internally more quickly, allowing you to act on your customers’ expressed intentions and needs so you can deliver optimal experiences at key stages throughout their journey.
- Salesforce – State of the Connected Customer: Second Edition
- Gartner – Gartner Survey Finds Importance of Customer Experience on the Rise - Marketing Is on the Hook
- Siegel+Gale – The World’s Simplest Brands 2018-2019
- Accenture Strategy – Digital Disconnect in Customer Engagement
- Forrester and Adobe – The Business Impact of Investing in Experience
- Deloitte – CX marks the spot: Rethinking the customer experience to win
- Salesforce – State of the Connected Customer
- Greenlight Digital (via Netimperative) - Marketers 'are underestimating customer brand loyalty'
- PwC – Experience is everything: Here’s how to get it right
- Convince & Convert – Chatter Matters: The 2018 Word of Mouth Report
- Adobe and Econsultancy –Digital Intelligence Briefing: 2018 Digital Trends
This is an update of a post originally published on June 14 2017, "6 Stats That Show How The Customer Experience Impacts Your Bottom Line", and has been updated to include additional and/or more recent CX stats.
Image Source: Unsplash