25 Stats That Show The Value Of Customer Experience
Customer experience is an important yet undervalued and underutilized part of any business. The quality of customer experience you provide to your clients determines how successful your business will be.
How long is a client looking to speak to one of your customer care agents left waiting in a line? When your customers lodge complaints about your products or services, how soon do you provide a quality solution? Although many businesses do not recognize the gravity of these actions, actions like this significantly affect the transactional relationship clients have with you.
Excellent customer experience is key to nurturing loyal customers, increasing sales, and boosting your business. In this article, we have provided 25 statistics that prove customer experience is of great value to any business.
What Is Customer Experience?
Customer experience, also called CX, is the total of a customer’s reaction to all the stages they encounter with your business before purchase, during purchase, and after purchase. In essence, customer experience denotes all the features your business offers that affect your client’s perception and feelings about your brand.
Customer experience refers to the quality of all the products and services you offer potential clients and customers that leaves an impression on them. It doesn't matter how short the interaction is, as long as it links your client to your brand, it affects your customer experience.
Many businesses do not fully understand the concept of customer experience and how it affects their brand. These businesses often assume that as long as they provide quality products to the public, customers would remain happy about the transactional relationship they share.
In reality, customers are affected by every interaction with your brand, regardless of how mundane it might seem. Customer experience begins with your business adverts that potential customers encounter and the quality of service you provide them as they pass through the purchase funnel towards finalizing a transaction.
To provide your clients with a great customer experience, you need to improve the quality of service you provide to them across the various touchpoints of your business. This means reviewing all actions and features from the employees that come in contact with your clients to your advertising processes.
All these might seem like a lot of work but investing in providing quality customer experience plays a significant role in ensuring the success of your business.
Why Is Customer Experience Important?
Exceptional customer experience is pivotal to sustaining the growth of any brand. When your clients are happy, your business rakes in profit in numerous ways.
Providing your customers with a quality customer experience promotes loyalty in your customer, improves customer retention, reduces customer churn, and encourages your clients to spread the word about how great your brand treats them. After all, the best type of advertising money cannot buy brand advocacy by your impressed customers, who help spread the good news about your brand through word-of-mouth.
Every benefit of an excellent customer experience drives toward improving your brand image and revenue through making more sales. From loyal customers who become repeat customers as they continue to patronize your business to the new customers referred to your business by these loyal customers, your business undoubtedly begins to grow.
But how important is customer experience?
It is a known fact that proven numbers do not lie. Below, we have provided statistically proven numbers that show the value of a good customer experience in any business.
25 customer experience statistics that show the importance of customer experience include:
1. 84% of companies who actively make efforts to improve their customer experience report increased company revenue.
This is no surprise as happy customers spend more on products from companies they love. Providing clients with a great customer experience positively impacts their purchasing decisions, causing them to spend more.
Happy customers are also inclined to tell their friends and services about the excellent customer service your company provides. This translates to more customers, more sales, and increased company revenue.
2. 73% of companies with above-average customer experience are better off financially than their competitors.
Businesses are growing more competitive than ever, and brands are implementing ingenious ways to perform better than their competitors. One of the methods companies use to outgrow their competitors is improving their customer experience.
Excellent customer experience attracts customers to brands. Customers gravitate to brands that treat them better and provide better services, pooling their money in the company, and helping the business grow its revenue.
3. 96% of customers say excellent customer service is vital in their choice of loyalty to a brand.
People are by default going to stick with brands that treat them better. The more seamless and frictionless the experience you provide, the less reason your clients see to choose your competitors over your brand.
4. 82% of the top-performing companies report detailed attention to the customer experience around digital and tech.
Providing excellent customer experience is more than delivering great products and services. It involves making an intentional effort in providing customers a seamless experience across various facets of your business using the best methods there is, technology inclusive.
In a world where technology evolves rapidly, your business must recognize that humans are increasingly beginning to affiliate with digital technology and use this to your advantage.
5. 43% of people will pay more for greater convenience.
Customers are willing to spend more on a brand that promises ease of shopping and a hitch-free transaction compared to one that is inefficient and challenging. Sometimes making more sales is not about raking in more customers but losing them to bad customer service. It is more important to focus on offering quality service and ease to encourage customers to spend more than they are willing to on a lousy customer experience.
6. American consumers say they will pay 17% more to patronize a company with a good customer experience.
Quality service and experience are as important to any customer as great products and services are. Customers will find no problem in paying a little more dollars if it guarantees they will get better service.
7. Companies with excellent customer experience rake in 5.7 times more revenue than competitors with bad customer service.
With a customer experience better than your competitor’s, it only makes sense that people will choose to patronize your brand instead. Providing your customers with a better customer experience improves customer retention, keeps customer churn to the minimum, and makes it more difficult for competitor brands to lure your clients away.
8. 46% of customers will abandon a brand whose employees are not knowledgeable.
Excellent customer experience begins with the employees. Without trained employees handling your clients, things can quickly fall apart.
As a part of an excellent customer experience, companies are reviewing their customer care team employees and investing in employee training resources.
9. 73% of customers are more impressed with brands who ask for and apply customer feedback.
Clients often have complaints and feedback they want businesses to be aware of. Simply taking this feedback into the books is not enough for clients.
Customers want to know that their feedback is being acted upon. They want to know that companies see their pain points and are working on providing a lasting solution to them.
10. Providing clients with a great customer experience can help companies lower the cost of serving customers by 33%.
Companies often spend a lot on winning customers over and maintaining healthy relationships. Instead of spending a lot on marketing and advertising, investing in providing clients with an excellent customer experience can help cut costs and direct their finances to other facets of the business.
11. 70% of Americans have spent more money to do business with a company that offers impeccable services.
Like many other statistics like this one have proven, customers have no problem spending a few extra dollars if they are guaranteed a top-notch experience.
12. 87% of customers who were provided excellent customer service will repeat business with the brand.
Providing customers with an excellent customer experience is one of the critical ingredients in nurturing loyalty. The better the experience you provide, the more convinced they are to continue doing business with you.
13. 80% of customers say they are more likely to do business with a company if it provides personalized experiences.
Customers expect companies they have a transactional business with to understand their unique tastes and preferences and engage them based on these preferences. Customers want to be treated as individuals and not a collective body of customers without any difference in choices.
14. Companies with engaged employees perform 147% better.
Creating engaged employees plays a significant role in driving a positive customer experience. An engaged workforce makes it easier to determine customer pain points across every touchpoint in your business.
15. 1 in 3 customers will leave a brand after one bad experience.
One bad experience is enough to detract from whatever initial positive impression a customer has about your brand. After being disappointed once, customers will be afraid of continuing a business relationship as the likelihood of being disappointed by your brand again remains possible.
16. 17% of American customers will abandon a brand after one bad experience.
Bad experiences like poor communication, excess website downtime, and lousy customer service are leading causes of customer churn. After experiencing any of these while transacting with you, customers will seek out other competitor brands’ services instead.
17. 89% of companies believe customer experience will be their primary basis for competition.
It is growing increasingly difficult to compete using product price, quality, or variety. Instead, companies are now focusing on using customer experience as a battleground to eliminate possible competition and drive their brand growth.
18. Customer-centric companies are 60% more profitable than companies that are not intentional about their customers.
Customers will always choose companies who adopt a customer culture and go to lengths to understand their expectations. Customer-centric companies always, by default, make more money than other companies due to their high ability to retain loyal customers.
19. Loyal customers are five times more likely to make a purchase again from the same company.
When a client is impressed by the service and experience they receive from a company, they are encouraged to continue to trust the company. This will cause them to continue to make purchases from the brand.
20. 69% of American customers patronize brands that offer a more consistent customer experience in physical and online stores than those with poor customer experience.
Consistency is vital when it comes to providing a great customer experience. When a business continues to show its clients they are a priority, clients will choose them over their competition.
21. Customers impressed with a brand’s positive customer experience are likely to spend 140% more than customers who report negative experiences.
22. Companies that build an emotional connection with their customers outperform the sales growth of their competitors by 85%.
Excellent consumer experience is all about providing your clients with the best service possible while also fostering an emotional connection to build trust and loyalty.
23. American businesses lose up to $62 billion annually due to bad customer experiences.
Bad customer experience causes more loss in business than any other nuances do. After one bad experience, most clients do not stick around for a second trial. This leads to customer churn and loss.
24. Retaining 5% of your customers is enough to boost your business profits by 95%.
While it is essential to look for and attract new clients to your products and services, it is often more important to prioritize current clients and maintain a healthy relationship with them. Providing excellent customer service keeps your clients in business with you and encourages continuous patronage.
25. 77% of customers say inefficient customer experiences diminish their quality of life.
Customer Experience Is The Future of Business
Customer experience has been proven through many research data to be the deal-breaker in business. Businesses and brands today are beginning to see the importance of providing a positive experience and are going neck to neck in a race to outdo their competitor with better CX.
To take your business level, it is essential to adopt measures, actions, and strategies to improve customer experience. With the right combination of Artificial Intelligence, Social media, and other means of engagement, your brand is well on its way to building valuable customer-brand relationships with your clients, thanks to a better customer experience.