A Closer Look at Customer Experience: 15 Stunning Stats Regarding Loyalty, Retention and Satisfaction
The rise of consumerism has put a great deal of pressure on Healthcare organizations across the country to improve their patient experience. Let us take a closer look at how businesses in general go about prioritizing customer experience to succeed in improving loyalty, satisfaction, and retention resulting in better business and happier consumers.
By Gert Volmer
For businesses to succeed in the current economic climate, customer experience must be a priority. No matter the industry, CX remains under the microscope. To help you make thoughtful CX choices with your organization, here is some reliable, impactful data we’ve collected about customer experience.
Our 15 statistics deal with the following areas:
⚫ Negative experiences
⚫ Positive experiences
⚫ Feedback loops
⚫ Internal viewpoints
⚫ Product/service differentiation
Buckle up: some of this information is probably going to surprise you.
Negative Experiences Have Bad Outcomes
It shouldn’t be a revelation that bad customer experiences lead to problems with that business. But, when you dig deeper, you find out some interesting things.
#1 – 67% of customers that have a terrible experience will act on those frustrations. In total, 95% of these consumers have taken some sort of public action (posting on social media, telling friends and family, etc.). This means that companies can’t upset a single customer without expecting some wider fallout. (Kolsky)
The best way to handle an upset customer is to give them some time to cool off, and then follow up. You want to attempt to win their business back before you lose it completely. The good news is, this can work! Often, if a company shows they care about the customer and really listen to the complaint, they will receive a second chance.
#2 – An unhappy customer takes action quickly. About 50% of unhappy customers will quit working with a company immediately after a bad marketing or sales experience. 25% of them head to social media to vent frustrations and 54% will engage with other companies. (Accenture)
When it comes to your social media or your online payment portal, you must have customer service options immediately available. People don’t want to wait a day to hear back from an agent. Instead, if you can’t have 24/7 live customer service, you definitely want an automated message or chatbot that answers questions and allows your customers to know that they are heard.
#3 – Some experiences that cause customers to look elsewhere include unfriendly service (60%) and the lack of knowledge of employees (46%). (PWC)
This proves that what you say doesn’t matter as much as how you say it. Your customer doesn’t want to feel small – make them important!
If the unhappy customer has the power to hurt your business, what can the happy customer do? That’s right! They have the power and the desire to help you succeed. Let’s look at some stats that back this up.
#4 – 23% of clients who enjoyed a pleasant customer experience went on to tell 10 or more people about it. (Harvard Business Review)
This proves how valuable word-of-mouth is to your business. Where else can you reach ten or more new clients without spending a dime? If you have your clients working for you as an additional sales force, you won’t ever lack for business.
#5 – 50% of all consumers use a company more frequently once they’ve had an excellent customer experience. (NewVoice)
This means, as long as you’re treating your customers the way they want to be treated, you have plenty of cross-selling and up-selling opportunities.
When you can track and effectively predict the behavior of your clients, you have an advantage. Still, there’s a fine line between knowing how to make customers happy… and creeping them out.
#6 – 80% of consumers enjoy businesses that offer personalized experiences. (Epsilon)
Consumers didn’t always like to give out their personal data, but they’ve realized that it leads to better rewards and convenience. Still, be careful not to seem like “Big Brother.”
Your customers want you to hear them, and they want you to take what they have to say seriously. If you don’t listen, they’ll still comment — it’ll just be on social media where they can let the world know. Successful organizations know how to listen and encourage more in-depth feedback for the benefit of the company.
#7 – Direct and fast communication is the key with millennials or baby boomers. (Narvar)
One of the main types of questions most businesses hear is, “Why is this happening?” The faster you know the answer, the better you are. Make sure you also provide a clear explanation and reasoning.
Today’s consumer generally wants a sure thing. (Fast food wouldn’t be successful otherwise.) As a result, they definitely want a positive customer experience. They can purchase what they desire at multiple places, so what makes your establishment different? CX is the answer.
#8 – 89% of leaders plan to compete based on customer experience. (Gartner)
Everyone is trying to sell. Instead of showcasing your product, highlight statistics that prove you offer a valuable customer experience. This sets you apart from the competition.
Most of what we’ve looked at have been from the customer’s point of view and it’s important. Now, let’s look at how the organization sees CX within the building.
#9 – 31% of companies reward employees for improving the customer experience. (Forrester Research)
This might not seem like a lot… and it isn’t. That’s good news, because it means you can start doing it and be ahead of the curve. Hurry, though; considering what we’ve already looked at, we expect this number to continue rising.
#10 – Nearly three-fourths of businesses admit that improving customer experience is one of their highest priorities. (Forrester)
Customer Experience ROI
We all want to give our customers a positive experience, but how does this affect the bottom line?
#11 – Companies with great customer experience scores grow revenue more than 5% than median growth in their market. (Bain & Co.)
#12 – Acquiring new customers cost 5-25 times more than simply retaining the ones you have. By increasing your retention rate by a mere 5%, you can increase profits anywhere from 25% to 95%. (Narvar)
Customer experience begins with branding. Customer expectations on this subject remain high.
#13 – Almost half of all millennial women personally know the origin story of their favorite brand. 41% of them can tell you who founded the company, and 40% of them follow a leader from the company on social media.(Merkle and Levo)
This is a demographic you want to market to, so storytelling is essential. It must remain consistent across all of your channels. You might even consider some behind-the-scenes content to increase transparency and promote relationship-building.
#14 – Two-thirds of today’s consumers want brands to take public stances on important issues. (Sprout Social)
If a customer likes a brand, it might be because of what they believe in. Just search Twitter to find plenty of people speaking up against companies that don’t stand up for today’s social issues.
Consumers join more loyalty programs now than ever, but they also expect more.
#15 – The typical household partakes in 19 to 29 loyalty programs. Still, it only actively participates with five to 12 of them. (Nasdaq)
It’s not news that customer experience creates business. Now you have the proof that you need to take action.