You enter a dungeon, you see a dragon.
He is your waiter for this evening…
The dragon says: “How nice of you to choose our dungeon again! You look particularly good today, if I may add. Would you like a lemon wedge with that Cuba Libre, sir? I have kept the table by the fireplace for you, as usual. Here is the menu, madam. I recommend the orc meat, it’s fresh!”
Now that’s what I call a great customer experience!
Dungeons and Dragons aside, we have a great selection of customer experience statistics for you today. Let’s have a little taste of what’s coming up next right away.
Eye-Opening Customer Experience Statistics
- By 2020, 40% of data analytics will be customer experience related.
- By 2022, global spending on CX is estimated to reach $640 billion.
- 74% of customers can switch brands if the purchasing process is too difficult for them.
- Global spending on customer experience has reached $500 billion in 2019.
- 32% of customers “break up” with a favorite brand after one poor customer experience.
- 67% of users say their standard for good customer experience is higher than ever.
Yup, the importance of customer experience is undeniable in 2019. Follow us and let’s enter the dungeon of statistics together. I hear the orc meat is sublime this evening:
Fascinating Customer Experience Facts
For the purposes of our selection, we gathered information about customer experience research, skimmed through tons of statistics and all kinds of additional info that we stumbled upon in the process. It was a wild ride!
Our purpose is to give you, the user, the opportunity to get all the information you need without having to browse endlessly for it.
Now, first order of business:
What is customer experience?
Customer experience (CX) is the perception every customer has of a company. In other words, it is the sum of all experiences a user can have with a brand. It encompasses everything from customer service to the product itself. The whole process is important for customers. The quality of CX may vary a lot, not to mention the individual approach towards each customer.
That’s great, but how about that:
What is a good customer experience?
Now, here things get shaky. Let’s start with some hot customer experience stats and see what matters to users:
1. 86% of users are inclined to pay more for a great customer experience.
(Source: Super Office)
- 76% of buyers think companies should understand and anticipate their needs.
- 67% of customers say their standard for customer experience has never been higher.
- 95% of users tell others about poor customer experience.
The thing is – you can compete at the level of customer experience and win! People are willing to pay more for a better quality of customer experience.
According to customer statistics:
2. 32% of customers “break up” with a favorite brand after one poor customer experience.
(Source: Iperceptions)
- 57% of consumers switch to another brand because it offers a better customer experience.
- 86% of B2B chief marketing officers say they consider customer experience to be of the highest priority.
- With a 5% increased customer retention, the increase in profits can be between 25% and 95%.
Are you still wondering why customer experience matters? Here:
3. 64% of buyers consider customer experience more important than price.
(Source: Iperceptions)
- In 2014, 41% of bank customers opened a new account due to good customer experience.
- 65% of users research a product online before visiting a physical store.
- Loyal customers on average are worth 10X the value of their first purchase.
If business owners manage to put themselves in the shoes of a customer – well, that’s when the story begins. There are many decisions to take along the path to success. Keeping your customers satisfied is as important as the quality of your product and service.
Now:
4. 71% of customers recommend a product or service because of a great customer experience.
(Source: Iperceptions)
- Retaining a customer is between 5-25X less expensive than acquiring a new one.
- 33% of customers who “broke up” with a brand did so because the experience wasn’t personalized enough.
These days there are too many options for everything!
Everyone can name at least a couple of bad customer experience examples. And the truth is – they stay with you and you simply can’t forgive anymore. If it’s not this brand – I’ll go to the other one. Ah, revenge is sweet!
Nordstrom, the online store for clothes and accessories, became famous for its exceptional customer experience in an unorthodox way. It once accepted a car tire as a return and made the refund of an item they never sold. It may be an urban legend, but it is still a great example of how customer experience can be used as a competitive advantage.
According to customer service stats:
5. 77% of customers think customer service is too hard to reach and wait an average of 11 minutes before hanging up.
(Source: Qualtrics XM)
- Satisfied clients will share their positive customer experience with an average of 9 people.
- 51% of US customers stay loyal to the company that offers the latest product or service.
6. By 2020, 40% of data analytics will be customer experience related.
(Source: Qualtrics XM)
- Satisfied clients result in a 30% rise in profits.
- Buyers who have had a single poor user experience are 88% less likely to renew their loyalty to the brand.
- Loyal customers make 30% more purchases per order than new ones.
Society evolves, people change. And customers are getting more and more demanding. Behaviors and values change. Products and brands are changing, demands are changing. And customer satisfaction is getting more and more difficult to achieve.
7. 85% of enterprise decision-makers claim they use a span of 2 years to make significant inroads into digital transformations or they will lag behind their competitors or suffer financial consequences.
(Source: Forbes)
- Satisfied customers are 14X more likely to make a new purchase in comparison to new clients.
- Buyers with an emotional connection to a brand have a 306% higher lifetime value.
50% of brands are planning to increase customer experience tech spending in 2019.
Now:
Digital Consumer Insight
Customers are exposed to an immense variety of options nowadays. Competition among the brands is cosmic, and every detail of a business strategy matters.
In the world of giving your customers the best, the role of digital consumer insights has become critical. Today, the world is becoming increasingly digitized and the options to monitor consumer behavior look better, compared to the methods of the pre-digit era.
In order to build your brand’s future, you can use that amazing source of information and make the best of your endeavors.
8. 34% of organizations have already undergone a digital transformation.
(Source: Forbes)
- It takes 12 positive customer experiences to compensate for a single bad one.
- 23% of B2B chief marketing officers say that improving customer experience is a top 3 priority.
According to 2019 CX stats:
9. Global spending on customer experience has reached $500 billion in 2019.
(Source: Statista)
- For a company with $1 billion in annual revenue stands to increase the revenue with as much as $823 million over the next 3 years because of a moderate increase of customer experience.
- Satisfied customers spend 67% more during the third year of their customer experience with the brand than during the first one.
- Every year the losses of companies that fail to provide even a simple customer experience are worth a total of $98 billion.
We need to use the power of digital consumer insights to get to know what consumers are looking for. Social media is a powerful source of insights to look for information – what products and services are people talking about, what time are they engaging with your content, and what is their attitude towards the competition.
And of course, customer experience is of utmost importance:
10. 84% of organizations that invest in CX improvement experience an increase in revenue.
(Source: Smart Insights)
- The average value of a lost client is $243.
- 55% of marketers are prioritizing more effective customer targeting and audience segmentation.
- 62% of B2B customers are more inclined to make further purchases from that brand after a good customer experience.
By 2020, the key brand differentiator will be customer experience.
Moving on now:
The Miracle of Consumer Experience
All the experiences during a consumer lifecycle are included in the customer experience. They are defined by the engagements buyers have with you every time they interact with your company.
11. 67% of users say their standard for good customer experience is higher than ever.
(Source: Iperceptions)
- 38% of customers claim they have become more loyal in the course of two years.
- 62% of buyers say they share their CX with other people.
- 79% of millennials are inclined to make purchases from brands with a mobile customer service portal.
According to customer experience stats:
12. 15% is the annual revenue growth rate of experience-driven organizations.
(Source: Iperceptions)
- US businesses lose a total of $1.6 trillion due to a lack of ability to retain customers.
- 91% of customers who do not complain will just leave your brand.
With the rise of technology, people are connected and empowered to share and receive information. Modern companies must be trustworthy, useful, respectful, and empathetic if they want to make it.
Now:
13. 74% of customers can switch brands if the purchasing process is too difficult for them.
(Source: Iperceptions)
- 87% of customers share their good customer experiences with others.
- 52% of buyers are willing to change the brand if the company does not personalize their communication with them.
- 61% of users are unlikely to return to a mobile website if it is not responsive. And 40% of all will visit a competitor’s website instead.
CX and Customer Service
Let’s perform a little experiment:
Think about all the companies you revisit over and over again. [10 seconds thinking time]. Now ask yourself why. Is it because their product is cheap or on the contrary – luxurious? Is it because their services are fast, or you go there for the quality of their product? Or maybe the website is so easy to use and you go back for the user experience?
Or is it the customer service?
Some brands are famous for their customer service. And they go to great lengths to keep that reputation. Customer service is a very important part of CX.
According to customer service stats:
14. In the near future, 47% of organizations will use chatbots for customer service, and another 40% – virtual assistants.
(Source: Qualtrics XM)
- 40% of customers prefer communicating with a live customer service representative.
- 43% of millennials contact customer service through their mobile devices.
- 54% of customers used email customer service in 2017.
15. By 2022, global spending on CX is estimated to reach $640 billion.
(Source: Statista)
- 84% of companies that work on improving their CX report an increase in revenue.
- 90% of consumers expect organizations to have an online portal for customer service.
- By 2021, 15% of customer service interactions will be handled by an AI.
60% of Americans prefer to solve basic customer service issues through self-service or an app.
And how about:
The Future of CX
Customer experience is everything – if you have an amazing website but your customer service is horrible, that can never equal to good customer experience. You can offer a great variety of products of excellent quality, but if you only have one store and it’s on an extremely inconvenient location – you won’t be getting the sales you deserve!
Companies like Uber, or Airbnb, or Apple, or Netflix (and J.K. Rowling… she is not a company, but she did write the best selling novel of all time) pushed boundaries. That’s what businesses strive for. According to the latest customer experience trends, the standards of users are on the rise.
That’s one of the reasons why the customer’s expectations are skyrocketing. Another one is that mobile applications are running the world nowadays. Online stores need to provide customers with great user experience and mobile websites need to be perfectly responsive.
Simply good is not enough anymore.
Bottom line: The better you take care and invest in the best possible customer experience your company can provide for its clients, the better chance of remaining on the top you have.
Key Take-Outs
Customer experience is the sum of all experiences a user can have with a brand. It is one of the most important elements of a business strategy, and as we all saw today – its importance nowadays is increasing.
This article should have convinced you about the importance of customer experience. Now is a good time to ask yourself a couple of questions like:
What is it that will make your company successful? What aspect of the customer experience of your company can you improve this week? Or in the next month.
Every customer experiences the world in a different way, and they deserve the best. They are also the ones who keep you in business. People don’t care about your business strategy. All they care about is the product itself AND the quality of customer experience.
Today we saw an incredible selection of customer experience statistics. They have the power to change the way you think about your business and the power to improve your business strategy.
See you around, guys!
Have a great day!
Resources:
- Super Office
- Iperceptions
- Iperceptions
- Iperceptions
- Qualtrics XM
- Qualtrics XM
- Forbes
- Forbes
- Statista
- Smart Insights
- Iperceptions
- Iperceptions
- Iperceptions
- Qualtrics XM
- Statista