Today, more than ever, your customers are calling the shots, and brands must adapt.
They now have the means and technology at their fingertips to give them access to more options than ever before. Your customers want to do things their way. They expect brands to give them what they want, how they want it, and when they want it (usually in real-time).
As a result, your customers are placing more and more weight on the Customer Experience (CX) when choosing between you and everyone else. As a result, your ability to deliver amazing CX can have reverberating effects on your bottom line.
The key for brands like yours to succeed today is to design a CX program that delivers great experiences across the customer journey. 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), which can be a tough sell internally.
Showing just how much CX can impact the bottom line, however, can help you get the ball rolling.
To help you, we’ve gathered 20+ eye-opening Customer Experience statistics that every CX professional needs to know in 2020 in the infographic below – plus some key takeaways to help guide your CX management efforts.
Note: If you want to easily share some of these stats or takeaways, we have also provided them below the infographic. Click the infographic to zoom / view it in a new tab.
The State of Customer Experience as we step into the 2020s
More and more research is showing the Customer Experience’s impact on the bottom line. As a result, the importance of designing a solid CX program has never been greater.
- 81 percent of marketers expect to compete mostly (or completely) on the basis of CX.1 (Click to Tweet!)
- 84 percent of customers feel that experiences are as important as the actual products and services.2 (Click to Tweet!)
- $641B will be spent on CX technologies in 2022, over $130B more than in 2019.3 (Click to Tweet!)
- CX Leaders get 3x greater return (stock performance) than CX Laggards.4 (Click to Tweet!)
- $1.6T is lost every year in the US because of poor customer service.5 (Click to Tweet!)
- $98B / year is left on the table by companies who fail to provide “simple” experiences to their consumers.6 (Click to Tweet!)
Key Takeaway: The importance of CX only continues to increase. As a result, brands are investing more resources into designing, managing, and optimizing Customer Experience Management (CEM) programs that deliver (and exceed) on customer expectations.
Customer expectations for CX keep on growing
It is a constant struggle to keep up with customer expectations. These expectations are powered by a combination of technology and easier access to information and options than ever before.
- 67 percent of customers say their standard for good experiences are higher than they’ve ever been.7 (Click to Tweet!)
- 73 percent of customers say that one extraordinary experience raises their expectations of other companies.2 (Click to Tweet!)
- 73 percent of customers expect companies to understand their needs and expectations (but only 51% of customers feel that companies do that).2 (Click to Tweet!)
- 63 percent say the best brands exceed expectations across the customer journey.8 (Click to Tweet!)
- 90 percent of customers find it important to receive an immediate response to their customer support questions.9 (Click to Tweet!)
- 85 percent of consumers will not do business with a company if they have concerns about its security practices.10 (Click to Tweet!)
Key takeaway: Today, you must have the measures in place to understand what your customers need and expect at each stage of their customer journey. Collecting customer feedback across all your touchpoints at critical moments in the customer journey is an essential component of any effective CX program.
Great CX helps boost your revenue (more quickly too)
The connection between quality Customer Experience and revenue is undeniable. It’s no surprise that brands who offer great CX see their revenue grow faster than those who don’t put CX as a top priority.
- 66 percent of customers say they’ll pay more for a great experience (82% for businesses).2 (Click to Tweet!)
- Customers are willing to spend 17 percent more with a company to get excellent service.11 (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 service.12 (Click to Tweet!)
- 69 percent of US adults shop more with retailers that offer consistent customer service both online and offline.13 (Click to Tweet!)
- 74 percent of people will likely switch brands if they find the purchasing process too difficult.14 (Click to Tweet!)
Key takeaway: Sometimes, customers may be willing to open their wallets a little more if it means receiving a better, more pleasant, and seamless experience and customer service down the line.
Amazing CX and customer service boosts customer retention and loyalty
High customer retention and loyalty are critical to a brand’s long-term success. A winning CX program not only helps you gain new customers – but it also makes them want to stay with your brand long-term.
- Experience-Driven businesses see almost 2x higher YoY growth in customer retention, repeat purchase rates and customer lifetime value than other businesses.15 (Click to Tweet!)
- 32 percent of customers stop doing business with a brand they love after only one bad experience.16 (Click to Tweet!)
- 57 percent of customers have stopped buying from a company because one of their competitors provided a better experience.7 (Click to Tweet!)
- 84 percent of customers are more loyal to companies with strong security controls.2 (Click to Tweet!)
Key takeaway: Every experience counts. Brands today must have the measures in place to continue catering to their customers’ expectations over time, but also to detect and remedy bad experience by closing the feedback loop as quickly as possible.
Customer Experience also impacts word-of-mouth
It’s easier than ever for people today to share their experiences (or horror stories) with others. Amazing CX encourages people to paint a positive picture of your brand to others.
- 50 percent of Americans would choose word-of-mouth if they were asked to pick only one source of information.17 (Click to Tweet!)
- 62 percent of customers say they share bad experiences with other people.7 (Click to Tweet!)
- 64 percent of consumers are more likely to recommend a brand to others if it offers simpler experiences and communications.6 (Click to Tweet!)
- 71 percent of people recommend a product or service because they received a “great experience”.17 (Click to Tweet!)
Key takeaway: There’s a lot of business at stake when it comes to CX you are offering, whether it’s repeat business from existing customers or new business from potential customers.
The key to a successful CX program? Customer-centricity.
Research continually shows the reverberating effects that Customer Experience can have on your bottom line. Designing, managing and optimizing a CX program can be a large investment in terms of time, money and resources. However, when done properly, it can provide you with a valuable advantage over your competitors and set you up for both short- and long-term success.
But a CX program can only succeed if you put the customer at the heart of all your decisions.
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 amazing experiences throughout their journey.
- Gartner – Key Findings From the Gartner Customer Experience Survey
- Salesforce – State of the Connected Customer: Third Edition
- IDC – Spending on Customer Experience Technologies Will Reach $641 Billion in 2022, According to New IDC Spending Guide
- Watermark Consulting – 2019 Customer Experience ROI Study (PDF)
- Accenture Strategy – U.S. Companies Losing Customers As Consumers Demand More Human Interaction, Accenture Strategy Study Finds
- Siegel+Gale – The World’s Simplest Brands 2018-2019
- Salesforce – State of the Connected Customer: Second Edition
- Wunderman – Wantedness
- HubSpot Research – Live Chat Exposes a Fatal Flaw in Your Go-to-Market
- PwC – Consumer Intelligence Series: Protect.me
- American Express – #WellActually, Americans Say Customer Service is Better Than Ever
- Deloitte – CX marks the spot: Rethinking the customer experience to win (PDF)
- Forrester – 2018 Customer Service Trends: How Operations Become Faster, Cheaper – And Yet, More Human
- Salesforce – State of the Connected Customer
- Forrester and Adobe – The Business Impact of Investing in Experience (PDF)
- PwC – Experience is everything. Get it right.
- Convince & Convert Consulting – Chatter Matters: The 2018 Word of Mouth Report
This is an update of our post, “[Infographic] 19 Customer Experience Statistics For 2019” published on March 20, 2019, and has been updated to include additional and/or more recent CX stats