Statistics that prove customer experience (CX) can boost your business
Competing on price alone is usually a race to the bottom.
And few brands want to be known for nothing but their competitiveness; organisations want to be revered for their exceptional products and unforgettable experiences.
While this rationale makes logical sense, and the race for CX is something we all understand implicitly, it’s natural to question whether we’re all pursuing the right goal.
What evidence is there to support the importance of CX? Has anyone measured the impact of CX on revenue?
We’ve gone hunting for CX research to try to answer this question, and this is what we’ve found:
Negative experiences are powerfully damaging
If your organisation is new to customer experience as a discipline, a great way to begin is to look for weak links in your customer journeys. Whenever there are glitches, awkward transitions or cause for complaints, then you have a CX issue to address. Eliminating problem areas is a sound starting point, and can give you a solid foundation to build a truly remarkable CX.
“32% of all customers would stop doing business with a brand they loved after one bad experience” – pwc
“Because a single negative experience has four to five times greater relative impact than a positive one, companies should focus on reducing poor customer experiences, especially in those areas in which customers come into contact with the organization most often.” – McKinsey.
Good CX can drive revenue
Creating great customer experiences isn’t just about keeping up with world-class companies like Uber, Apple and Airbnb; it’s also about attracting and retaining customers – and making a significant difference to your bottom line.
Research supports this, and shows that many people make a decision (whether conscious or unconscious) to choose brands that provide the best experience, even if this entails a premium price.
“8 in 10 consumers (81%) indicate that they are willing to spend more with an organisation for a better customer experience, and 1 in 10 (9%) consumers would increase spend by more than a half.”
“Respondents said their company realized $3 in benefits for every $1 it spent on improving customer experiences.” - Customer Think
Good CX has benefits beyond revenue
Research also shows that CX isn’t just a good sales tactic; it also delivers a range of long-term benefits. And that might be the most compelling aspect of customer experience optimisation: every ounce of energy devoted to it delivers measurable gains across all timeframes.
“Respondents also reported that improving customer experiences produced increased levels of customer satisfaction (58%), increased customer loyalty (45%), and increased levels of customer acquisition and retention (41%). – Avanade / Sitecore
“B2B companies that transformed their customer experience processes saw benefits similar to those seen by B2C companies, including a 10 to 15 percent revenue growth, higher client satisfaction scores, improved employee satisfaction and a 10 to 20 percent reduction in operational costs.” - LifeRay
“When customers feel appreciated, companies gain measurable benefits—including the chance to win more of their customers’ spending dollars. The payoffs for valued, great experiences are tangible: up to a 16% price premium on products and services, plus increased loyalty” - pwc
The evidence is clear: improving your CX is good for business.
If you are interested in how DocCentrics can help you create better customer experiences through personalised communications, dynamic onboarding solutions and event-driven messages, contact our team today.