We all know that customers talk about good experiences. We know they talk about bad experiences even more. (Quite a bit more!) And common sense indicates the importance of customer experience. But if you’re not convinced yet, here are some concrete reasons why you should be investing in customer experience at your organization.
Lower Customer Acquisition Costs
Acquiring new customers can be an expensive, time-consuming process. Wouldn’t it be great if customers simply came to you? If your brand has a reputation for great customer experience, they may!
RightNow’s Customer Experience Report found that “55% [of consumers] became a customer of a company because of their reputation for great customer service ”.
Additionally, positive customer experience is a top reason customers refer companies to people they know. In RightNow’s report, customer experience outperformed both product and price as the top driver of referrals. And those referrals are the main reason people try a new company.
Think about it. If you do business with any companies that provide a poor experience, it’s probably due to very low prices or a lack of options. The second there’s competition, you’d be out the door. In fact, when Oracle compiled a Customer Experience Impact Report, they found that 89% of consumers had left for a competitor due to poor customer experience.
On the other hand, customers stick around when they’re having positive experiences. A survey run for American Express found that 95% of consumers would give a company repeat business if they had a good experience.
Your customers will spend more.
Not only does great customer experience help you bring in more customers and keep them longer – it also gets those customers to spend more.
68% of consumers in RightNow’s report would be willing to “pay more over the standard price in order to ensure a superior customer experience” – with some willing to pay 25% more!
According to Harvard Business Review, “customers who had the best past experiences spend 140% more compared to those who had the poorest past experience”.
Oracle’s study revealed that customer experience is the best way to engage customers to spend more. The next most popular responses were “make it easy to… access information” and “improve… overall website usability”, both of which feature heavily in overall customer experience.
How about peer pressure?
According to the 2018 Customer Experience Industry report from User Testing, 95% of executives state that great customer experience is “critical” to their company’s success. Walker claims that customer experience will be a key differentiator by 2020.
Put all these reasons together, and it’s clear that customer experience is incredibly important – for your customers, and for your business.
Ninth Fourth can help you determine what your customer focus should look like, and design initiatives to make your customer experiences best-in-class.