Customer experience has fast become a top priority for businesses
Customers no longer base their loyalty on price or product. Instead, they stay loyal with companies due to the experience they receive. Any business that cannot keep up with their increasing demands will lose customers.
In a 2018 report by Price Waterhouse Coopers (PWC) titled “Experience is everything”, PWC noted the following:
- The payoff in terms of price premium is real
The payoffs for valued, great experiences are tangible: up to a 16% price premium on products and services, plus increased loyalty. In return, among U.S. consumers, there’s a sharp increase in willingness to give up personal data: 63% say they’d share more information with a company that offers a great experience.
- Bad experience is driving customers away—fast.
One in three consumers (32%) say they will walk away from a brand they love after just one bad experience. This figure is even higher in Latin America, at 49%.
- Companies need to get the must-do’s right.
Speed, convenience, helpful employees and friendly service matter most, each hitting over 70% in importance to consumers. Those who get it right prioritize technologies that foster or provide these benefits.
- Give up generational fixation.
What matters most to all generations surveyed holds true for Gen Z, too. Instant is expected. Convenience—seamless transition from tablet to smartphone to desktop to human—is a baseline expectation.
Furthermore, a Walker Study found that
by the year 2020, customer experience will overtake price and product as the key brand differentiator.
What is customer experience?
Customer experience is a customers’ perception of how the company treats them. These perceptions affect their behaviours and build memories and feelings to drive their loyalty.
In other words: if they like a business they are going to continue to do business with them and recommend them to others.
The same applies to all industries: improving the customer experience is the key to increasing retention, satisfaction and revenue.