In the age where your customers have continuously-increasing buying power, Customer Experience (CX) is emerging as the key differentiator.
At the Adobe Summit this year, the motto for the first day was, quite simply, “Make Experience Your Business” (check out our recap of Adobe Summit 2017 here). Research is continuously being conducted to measure the benefits and effects that companies feel when increasing their CX optimization efforts, including its impact on your company’s bottom line, which all members of your C-Suite can appreciate.
In this post, we highlight 6 of these stats that jump out to us and highlight the impact that a great customer experience can have on your bottom line.
1. Great Customer Experience breeds brand loyalty...
When you think about it, it makes sense that you would be more willing to do business with a company again if you’ve already had a great experience with them and their products in the past.
According to the Temkin Group, 86% of those who received excellent Customer Experience were likely to repurchase from that company, compared to only 13% of those who had a very poor Customer Experience (more than 6 times more likely). (Tweet this stat)
2. ...and positive word-of-mouth
The Temkin Group also found that those who received excellent Customer Experience were 11 times more likely to recommend the company than those who had a very poor CX (77% vs. 7%, respectively). (Tweet this stat)
In other words, there’s a lot of business at stake when it comes to the Customer Experience you’re offering, whether it’s repeat business from existing customers, or new business from potential customers.
3. Great CX helps boost your revenue more quickly
Likely as a result of the stats mentioned above, it’s no surprise to see faster revenue growth for the companies that offer great CX than those who offer sub-optimal CX.
Forrester found that CX leaders grow revenue faster than CX laggards, with leaders seeing a 17 percent compound average revenue growth rate (CAGR), compared to only 3% for their CX laggard counterparts. (Tweet this stat)
4. A bad purchasing experience can hurt your company’s bottom-line, in more ways than one
According to Salesforce, 74 percent of people will likely switch brands if they found the purchasing process too difficult. So not only can a difficult purchasing experience prevent people from purchasing what they want today, but it can also have 2 other lasting effects. For one, you could lose out on potential sales down the line if they choose to no longer do business with you, negatively impacting your bottom line. And secondly, they can choose to go to one of your direct competitors, essentially improving their bottom line as a result. (Tweet this stat)
It’s important to not only consider the short-term impacts that a great (or poor) Customer Experience can have, but also the long-term impacts that it can lead to.
5. In the battle of CX vs. Pricing, the Customer Experience wins
Regardless of your industry, you’re most likely facing an increasingly competitive landscape where you’re always looking for that little extra something that will make shoppers choose you over your competitors.
When it comes to down competing on price or the experience, Gartner found that 64% of people found CX to be more important than price when it comes to purchasing something. (Tweet this stat)
Sometimes, customers might 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.
6. Customer Retention and Sales: The primary benefits of CX according to senior execs
Companies investing into the improvement of CX is not something new, with a large proportion of senior executives agreeing on the primary benefits it offers.
According to a study by The Economist Intelligence Unit, sponsored by Genesys, senior executives viewed improved customer retention and sales to be the most important benefits for investing in customer experience. Customer Retention was perceived as the primary benefit among 33 percent of senior execs, while 28 percent believed Increased Sales to be the primary benefit.
Optimizing the Customer Experience can be beneficial both before and after the purchase, potentially leading to longer and more fruitful relationships with your customers.
Customer Experience is an investment, and not just a buzzword
Adjusting your business to offer optimal CX throughout all your business processes is a massive endeavor. But in the grand scheme of things, if it helps you gain a valuable competitive advantage over your competitors down the road and boost your bottom line as a result, CX can be a worthwhile investment to consider, or to continue investing in.
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