If you talked to business professionals 15 years ago, they might found customer experience sounds like a foreign topic. As the Google Trends chart presents below, the topic of customer experience has only become popular and widely searched in the recent few years.
Customer experience is more than a buzzword. 💡 A great customer experience can help you turn one-time buyers into repeat ones, increase customer base, enhance customer satisfaction and loyalty, improve brand image, and ultimately, increase conversions, sales and revenue! The list of benefits goes on and on.
On the one hand, modern consumers no longer base their loyalty on the product, price, or even brand. Instead, they base it on the experience they receive. On the other hand, offering an excellent customer experience is probably your only way to stand out in a sea of competition.
"To stand out in a sea of sameness, customer experience is the only way to do that."
However, executives and co-workers in your company will not invest in customer experience without seeing the actual "proofs", as they only want to make data-driven, informed business decisions. So we've compiled a list of 37 top stats & trends that demonstrate the high value and growing importance of customer experience!
Sounds interesting? Let's get started!
More and more companies are focusing on the customer experience
- 81% of companies view customer experience as a competitive differentiator.
- A recent study surveyed 1,920 business professionals, and 45.9% of them cited customer experience as their number one priority for the next five years (beating product and pricing).
- More than two-thirds of companies now compete primarily on customer experience, up from 36% in 2010.
- 90% of CEOs believe the customer has the most significant impact on their business.
- Globally successful companies place customer service as a priority. For example, 22% of Fortune 100 companies have a C-level customer officer, compared to 10% of Fortune 500 and 6% of Fortune 1000.
- According to Econsultancy's 'The Cheat Code to Growth' report, 95% of leading organizations cite CX job roles as essential to achieving business growth—the highest of any job role.
- 88% of companies now prioritize customer experience in their contact centers, as per Deloitte's Global Contact Center report.
- 84% of companies that work to improve their customer experience report an increase in their revenue.
- Brands with superior customer experience bring in 7 times more revenue than competitors that lag in customer experience.
- Customer-centric companies are 60% more profitable than companies that don't focus on customers.
- Offering a high-quality customer experience can lower the cost of serving customers by up to 33%.
- A 2% increase in customer retention is the same to profits as cutting costs by 10%.
What do consumers say about customer experience?
- According to Forbes Insights Report, 74% of consumers are at least somewhat likely to buy based on experiences alone.
- A study by Walker discovered that customer experience will overtake price and product as the key brand differentiator at the end of 2020. And 86% of consumers will pay more for a better customer experience.
- According to PWC's research, 86% of buyers are willing to pay more for a great customer experience. The more expensive the item, the more they are willing to pay 😉.
- Consumers will pay a 16% price premium for a great customer experience.
- Happy customers often come back to you! 87% of customers who say they had a great experience will make another purchase from the company, compared to 18% of customers who had a very poor experience.
- 73% of consumers say a good experience is key in influencing their brand loyalties, as per PWC's 'Customer Experience is Everything' study.
- Customer experience drives more than two-thirds of customer loyalty, outperforming brand and price combined.
- Loyal customers are five times more likely to purchase again and four times more likely to refer a friend to the company.
- You'll make more money if you make your customers happy. Customers are likely to spend 140% more after a positive experience than customers who report negative experiences.
- 70% of Americans have spent more money to do business with a company that offers great service.
Bad experiences are driving customers away
- Only 1 out of 26 unhappy customers actually complain. The rest, they just leave!
- The Global Customer Engagement 2020 Report points out that the top reason customers switch brands is because they feel unappreciated.
- 32% of customers will stop doing business with a brand they loved after only one negative experience.
- PwC surveyed 15,000 consumers and found that 1 in 3 customers will leave a brand they love after just one bad experience. Worse still, 92% would completely abandon a company after two or three negative interactions.
- 77% of consumers say inefficient customer experiences detract from their quality of life.
- 62% of customers say they share their bad experiences with others, as per Salesforce Research.
- According to Deloitte's recent research, customers tell an average of 9 people about a positive experience with a brand, but they tell 16 people about a negative experience.
Top trends to follow for creating outstanding customer experiences
- IDC predicts that global CX technology spending is expected to reach $641 billion in 2022, which is over $130B more than in 2019.
- In 2021, brands will see a 40% increase in digital customer service.
- It's projected that by 2023, 40% of customer interactions will be automated through AI and machine learning technologies, up from 25% in 2019.
- 65% of companies say improving their data analysis is very important to delivering a better customer experience.
👉 If you want to learn more about how you can utilize AI to improve their customer experience with ease, check out these stories from Munk Store and Natural Baby Shower:
- Munk Store Drives Sales & Improves On-site Shopping Experience with Clerk
- Natural Baby Shower Improves CX & Increases Conversions by 349%
- 69% of U.S. consumers shop more with brands that offer consistent experiences in-store and online.
- In PWC's 2020 report, they found that the number of companies investing in the omnichannel experience has jumped from 20% to more than 80%.
- 84% of companies that claim to be customer-centric are now focusing on the mobile customer experience.
- 75% of customers consider self-service as a convenient way to address customer service issues. And, 67% of them prefer self-service over speaking to a company representative.
After reading all these stats, it sounds like a no-brainer to invest in customer experience, right?
Being the world's #1 rated e-commerce personalization platform, Clerk.io helps 2,500+ e-commerce stores worldwide automatically improve CX and grow sales. Get started by talking to one of our specialists today.