37 Customer Experience Statistics You Need to Know for 2019
- Customer experience has fast become a top priority for businesses and 2019 will be no different. But, why are so many companies focusing on the customer experience and what happens to companies that choose to ignore it?
- Customers no longer base their loyalty on price or product. Instead, they stay loyal with companies due to the experience they receive. If you cannot keep up with their increasing demands, your customers will leave you.
- Cross-device shopping via a wide range of channels has made it difficult for companies to maintain consistency. Processes and technologies need to change in order to provide a consistent experience across all platforms.
It seems that it was only yesterday that every business claimed the key to winning customers was in the quality of product or service they deliver.
But, things have changed…
Now it seems that an even more important factor for success has shown up.
In fact, all we hear these days is how important providing the best customer experience is.
Do you know why?
Let me explain.
When Econsultancy conducted their survey for Digital Marketing Trends, they asked companies to state the single most exciting opportunity for 2019.
Customer experience (or CX) came in first (beating content marketing and mobile marketing!).
It’s no surprise that customer experience is so exciting.
The Temkin Group found that companies that earn $1 billion annually can expect to earn, on average, an additional $700 million within 3 years of investing in customer experience.
For SaaS companies in particular, they can expect to increase revenue by $1 billion.
Investing in CX initiatives has the potential to double your revenue within 36 months.
So where is this revenue growth coming from?
A good customer experience means your customers spend more, with:
- 86% of buyers are willing to pay more for a great customer experience
- 73% of buyers point to customer experience as an important factor in purchasing decisions
- 65% of buyers find a positive experience with a brand to be more influential than great advertising
Plus, a Walker study found that by the year 2020, customer experience will overtake price and product as the key brand differentiator.
What is customer experience?
Customer experience is your customers’ perception of how your company treats them. These perceptions affect their behaviors and build memories and feelings to drive their loyalty. In other words: if they like you and continue to like you, they are going to do business with you and recommend you to the others.
In doing so, they will spend more.
How much you ask?
Well, customers are willing to pay a price premium of up to 13% (and as high as 18%) for luxury and indulgence services, simply by receiving a great customer experience.
So, it’s easy to see why it’s important for so many companies.
In order for your customers to like you, you should know them very well, and then use this knowledge to deliver personalized experiences across the entire customer journey that will entice their loyalty.
But gaining this in-depth knowledge about customers isn’t something that just happens. You need to collect customer data (i.e.Voice of Customer data) and bring out valuable insights from that data with speed and precision.
It doesn’t matter what kind of business you’re in – improving the experience for your customers is the key to increasing retention, satisfaction and revenue.
So, what has to be done for you to become a winner?
In this action-packed data-driven blog post, we will take a look at some of the most important customer experience statistics that will help you improve your business operations for the coming year.
Customer experience is the new battlefield
It’s highly unlikely that you want to do business with someone who treats you poorly.
How you feel after a phone call you’ve made to a customer service center affects your further decisions. According to Deloitte, 62% of companies view customer experience delivered by contact centers as a competitive differentiator.
In fact, two-thirds of a company’s competitive edge is based on the experience they deliver to their customers.
Therefore, if you want your customers to stay loyal, you have to invest in the experience. As a result, Gartner predicts that by 2019, more than 50% of organizations will redirect their investments to customer experience innovations.
So, where should you start?
According to the Gartner survey, companies that implement customer experience projects begin by focusing on ways they collect and analyze customer feedback. This is a great starting point for meeting your customers’ expectations.
The importance of multi-channel servicing will increase
Today companies interact with their customers across multiple channels – online, offline, via social media, etc.
In fact, Aberdeen Group claims that companies with the strongest omni-channel customer engagement strategies retain an average of 89% of their customers, as compared to 33% for companies with weak omni-channel strategies.
However, while customers may be positive and accept different service levels from different channels, they expect the communication to remain consistent, and that creates a real challenge.
Accenture found that 89% of customers get frustrated because they need to repeat their issues to multiple representatives. Moreover, 87% of customers think brands need to put more effort into providing a consistent experience, Kampyle claims.
In fact, according to PricewaterhouseCoopers, the demand for an omni-channel customer experience will be amplified by the need for near perfect execution, and the number of companies that invest in omni-channel has jumped from 20% to more than 80%.
Mobile customer experience is priority
When providing experience across different channels, it seems that mobile customer service is expected to soar. Why?
Well, because a bad mobile experience can do serious damage to your brand and end up in losses in business. According to WOW Local Marketing, 52% of customers are less likely to engage with the company because of bad mobile experience.
It’s no longer the question whether the mobile experience is important or not. We already know it is!
By 2019, mobile search will generate 27.8 billion more queries than desktop search.
However, it seems that companies have been a bit slow to adapt, with 90% of customers saying they have had poor experience seeking customer support on mobile, according to Software advice.
This is a gap that needs to be taken care of, as more than 65% of customers aged 18-44 use mobile to seek for service more than once a month.
Customer frustration will lead to churn
What happens if you fail to provide positive customer experience?
Simple. Customers will be frustrated.
According to Esteban Kolsky, if a customer is not satisfied, 13% of them will tell that experience with 15 or even more people and share that they are unhappy. On the other hand, 72% of customers will share a positive experience with 6 or more people.
67% of customers mention bad experiences as a reason for churn, but only 1 out of 26 unhappy customers complain.
The rest, they just leave, Kolsky claims.
The lesson that we can learn here is that the absence of negative feedback is not a sign of satisfaction. An indifferent attitude to your customers might lead to them leaving or even worse – sharing the bad experience with others.
However, even if you provide a positive customer experience 9 out of 10 times, that one time you do not could be fatal. In their future of CX report, PwC surveyed 15,000 consumers and found that 1 in 3 customers will leave a brand they love after just one bad experience.
Lastly, a study by Harvard Business Review found that 56% of customers complain about poor follow-up.
Put simply, much of this can be solved just by sending a follow up email.
Self-service help will be the first choice
In 2019, companies should ensure that customers are able to find answers to their questions using an assortment of self-service options, as 50% of customers think it’s important to solve product or service issues themselves and 70% expect a company’s website to include a self-service application.
Self-service adoption will continue to increase. Gartner predicts that by 2020 a customer will manage 85% of the relationship with an enterprise without interacting with a human, so make sure to give your customers the direction and tools they need to accomplish tasks themselves.
With 89% of businesses soon to be expected to compete mainly on customer experience, organizations that take customer experience seriously will stand out from the noise and win loyal customers over.
One thing for sure, in order to deliver an excellent customer experience, you have to know your customers better than ever before. This means creating complete customer profiles that help you understand and measure your customers’ behaviors at every touch point across multiple channels. To achieve this, you need a CRM strategy.
Once you know your customers well enough, you can use that knowledge to personalize every interaction. Customers these days have more power and choice than ever before. Thus, you are responsible for understanding and acknowledging their needs.
If you make sure their interaction with your company is smooth, pleasant and continuously improving, you will drive brand loyalty. If not, you’ll give your competitors the best gift – your customers.
Are there any important customer experience statistics we missed in this post?
Let me know by leaving a comment below.
P.S. If you got something valuable from these customer experience statistics, please remember to Tweet about it here!