According to the fifth annual Customer Experience Report, a Harris Interactive study sponsored by RightNow Technologies, customer experience is playing a significant role in determining where consumers choose to shop and how much they are willing to spend. Results show that exceptional customer experience creates loyal customers and has the power to impact a company's top and bottom lines.
Nearly all consumers (85 percent) said they would be willing to pay more over the standard price of a good or service to ensure a superior customer experience. Of those consumers that said they would pay more for an excellent customer experience:
55 percent would pay 10 percent or more 27 percent would pay 15 percent or more 10 percent would pay 25 percent or more
Customer Experience, the Secret Weapon for Driving Revenue
These results show that delivering a positive customer experience can help organizations increase revenue. For example, in 2009 Cyber Monday alone generated $887 million in revenue for e-retailers. Based on the results of this study the industry could have generated an additional $87 million in revenue in just one day by providing superior customer experience.
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This year's research also shows that a great customer service experience significantly impacts purchasing decisions:
Nearly all consumers (82 percent) have stopped doing business with an organization as a result of negative experience and most (75 percent) do not return 55 percent of consumers became customers of a company based on its reputation for great customer service, and 40 percent of consumers have switched to a competitive brand simply because of its reputation for exceptional service
"This year's report not only demonstrates the financial impact of a negative customer experience, but the real value of positive customer experiences. By focusing on delivering exceptional experiences, businesses have the opportunity to grow their customer base, improve brand loyalty and increase overall revenue." Greg Gianforte, chief executive officer, RightNow
The Power of Word of Mouth
Consumers not only voice their customer experience preferences with their own wallets; they also influence their peers. According to the 2010 Customer Experience Report, customer advocacy should be a key focus for businesses because:
Customer service is still the number one reason consumers recommend an organization, more than products or price Word of mouth is the number one influence on consumers' purchasing decisions (76 percent), followed by customer reviews and online feedback at 49 percent 79 percent of consumers that have had a negative experience with an organization told others about it, and 97 percent chose to share their experience via word of mouth 85 percent wanted to warn others about the pitfalls of doing business with that company and 66 percent wanted to discourage others from buying from that company
What Makes a Great Experience?
The 2010 report outlines why consumers stop doing business with a company:
Companies can improve the customer experience by providing friendly, knowledgeable support and resolving issues in a timely manner.
"Drugstore.com is heavily invested in delivering a positive, personalized customer experience and it has a tremendous impact on our business, steadily increasing our Net Promoter score and increasing sales." Lisa Larson, Director of Customer Care, Drugstore.com
"Customer experience is a top priority for Nikon. We work hard to quickly respond to customers' needs no matter how they choose to reach out to the company. Our dedication to providing customers with a great experience is helping Nikon consistently achieve a 95 percent customer satisfaction score." David Dentry, GM, Customer Relations, Nikon
This survey was conducted online within the United States between June 30-July 2, 2010 among 2,217 adults (aged 18 and over) by Harris Interactive on behalf of RightNow Technologies via its Quick Query omnibus product. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Where appropriate, this data were also weighted to reflect the composition of the adult online population. Propensity score weighting was also used to adjust for respondents' propensity to be online.
Retail addict and marketing professional. I have dedicated most of my working life to the understanding of how to influence the consumer no matter if it´s inside or out of the store.
Owner of Magnus Ohlsson Retail Management.