We all know that poor customer experiences can drive consumers away. But a new study by PwC, titled “Experience Is Everything,” says there is also a quantifiable value in good customer experiences.
In fact, the price premium for quality CX among consumers worldwide is up to 16% for products and services, the report, based on 15,000 global respondents, found. Forty-two percent of consumers said they would pay more for a friendly, welcoming experience, and 52% would pay more for a speedy and efficient customer experience.
Of course, price and quality are still the top considerations when consumers make a purchase decision. However, 73% said that a good experience is key in influencing their brand loyalties.
“When you look at the companies doing really well or [owning] these high-fidelity spaces that uniquely separate them, it is because they are the ones that are embracing design, investing in innovation, and working toward perfecting the customer experience,” said David Clarke, global CXO and experience consulting leader at PwC. “They’re also seeing higher premiums being paid on their products, and higher loyalty, too.”
Of the consumers surveyed, 60% said they would stop doing business with a company if they experienced unfriendly service. Additionally, 46% said they would do business elsewhere if employees lacked knowledge to help them. One in three (32%) say they would walk away from a brand they “love” after just one bad experience.
So what exactly do consumers expect from their brand experiences? Speed and efficiency (80%) topped the list, followed by knowledgeable and helpful employees (78%). A whopping 71% of consumers said they think a company’s employees have a significant impact on their experience. The problem is, only 44% believe that employees understand their needs well.
“Companies need to take a close look at how they are investing their money,” Clarke said. “If you are still spending in more traditional ways of media and marketing and not allocating enough money into how you’re building that experience, then it’s problematic.”
Clarke pointed to the fact that many companies today don’t have an “experience budget.” Building great experiences means hiring the right people, giving those people the right tools, and more. An experience budget would have to run horizontally across the business, he said, so that people across an organization understand that everyone is accountable.
“Great companies are no longer just product or service companies; they’re great experience companies, and the companies that are moving their investments from traditional ways of marketing and advertising into experience-led services and products are the ones that are actually doing better,” Clarke said. “They’re winning.”
Click here for the full study, which elaborates on the following “must-knows.”