62 Customer experience statistics every business needs to know

Written by

@toq

Filed under
Customers

Posted on
February 7, 2018

In today’s global marketplace, it’s easy for companies to get lost in the crowd. Businesses can no longer differentiate themselves on product or price alone. These days it takes more to stand out and win customers. The new watchword is customer experience and it’s changing the way we do business.

Customer experience, or CX as it’s commonly known, has become the key differentiator for businesses looking to get ahead of their competitors.

Type the term into a quick Google search and you’ll see just how much momentum customer experience has gained in recent years. It’s certainly a game-changer and something every business needs to know about.

We know not everyone has the time to trawl through all the influencer insights, research results, fact and tips on the subject of customer experience.

So, to save you the trouble, we’ve put together a list of key customer experience statistics that every business needs to know.

Customer experience – the opportunity

1. According to Econsultancy’s annual Digital Marketing Trends survey, customer experience has come out top as the single most exciting business opportunity for organisations, for the last two years running.

2. By the year 2020, customer experience will overtake price and product as the key brand differentiator. ~ Walker 

Customer experience – what customers say

3. 76% of UK adults say a positive customer experience is more important than the product. ~ Lithium

4. 74% of UK adults will spend more on products and services from a brand they love. ~ Lithium

5. 80% of companies believe they deliver a superior customer experience, but only 8% of customers agree. ~ Lee Resources

6. 76% of consumers view customer service as the true test of how much a company values them. ~ Aspect

7. 55% of customers are willing to pay more for a guaranteed good experience. ~ White House Office of Consumer Affairs

8. 40% of customers want customer service improvements to focus on taking care of their needs more quickly. ~ American Express (2017)

9. 56% of global consumers say they have higher expectations for customer service now than they had just one year ago ~ Microsoft (2017)

 

Customer experience and customer happiness

10. 70% of buying experiences are based on how the customer feels they are being treated. ~ McKinsey

11. Brands need to focus on emotion to become a CX leader. The top five UK brands provided an average of 16 emotionally positive experiences for each negative experience, compared with 7 for the bottom five brands. ~ Forrester

12. Happy customers tell on average of 11 people about a positive experience. ~ American Express (2017)

13. Unhappy customers tell on average of 15 people about a poor experience. ~ American Express (2017)

14. For every customer who bothers to complain, 26 other customers remain silent. ~ White House Office of Consumer Affairs

15. After a bad experience, 30% of consumers tell the company, 50% tell their friends, 15% provide feedback on a ratings site and 14% Tweet about it. ~ Temkin Group

16. 69% of customers will spend more with a company that has good customer service. ~ American Express 2017

17. Customers who encounter positive social customer care experiences are nearly 3x more likely to recommend a brand. ~ Harvard Business Review

18. Customers who have a good experience are 3.5x more likely to make additional purchase and 5x more likely to recommend a business. ~ Temkin Group

19. 33% of customers would consider switching companies immediately after poor service. ~ American Express 2017

20. 66% of consumers who switched brands did so because of poor service. ~ thinkJar

21. 85% of customer churn due to poor service was preventable. ~ thinkJar

22. 67% of customer churn is preventable if the customer issue is resolved at the first engagement. ~ thinkJar

23. Resolve a complaint in the customer’s favour and they will do business with you again 70% of the time. ~ Lee Resources

24. Increasing customer retention rates by 5% could increase profits from 25% to 95%. ~ Harvard Business Review

25. 91% of unhappy customers who are non-complainers simply leave. ~ thinkJar

Customer experience and marketing

26. It is 6-7x more costly to attract a new customer than it is to retain an existing customer. ~ White House Office of Consumer Affairs

27. 5-20% – the probability of selling to a new prospect. ~ Marketing Metrics

28. 60-70% – the probability of selling to an existing customer. ~ Marketing Metrics

29. Only 12% of companies are able to successfully upsell or cross-sell to new customers. ~ thinkJar

30. 65% of companies are able to successfully upsell or cross-sell to existing customers. ~ thinkJar

31. Loyal customers are 5x as likely to repurchase, 5x as likely to forgive, 7x as likely to try a new offering, and 4x as likely to refer. ~ Temkin Group

32. On average, loyal customers are worth up to 10 times as much as their first purchase. ~ White House Office of Consumer Affairs

Customer experience and engagement

33. 75% of brands don’t know what ‘engagement’ means – but are measuring it. ~ thinkJar

34. Organisations that optimise an emotional connection outperform competitors by 26% in gross margin and 85% in sales growth. ~ The Disney Institute

35. 70% of companies that deliver best in class customer experience use customer feedback. ~ thinkJar

36. Only 31% of organisations recognise and reward employees across the company for improving the customer experience. ~ Forrester Research

37. 56% consumers willing to share data to receive faster and more convenient service. ~ Salesforce

38. 57% of consumers agree they’re willing to share data with companies that send personalised offers and discounts. ~ Salesforce

39. 61% of Millennials are happy to share personal data if it leads to a more personalised in-store or online shopping experience. ~ Salesforce

40. 52% of consumers are likely to switch brands if a company doesn’t make an effort to personalise communications to them. ~ Salesforce

41. 50% consumers are likely to switch brands if a company doesn’t anticipate their needs. ~ Salesforce

42. 75% of consumers now expect a consistent experience wherever they engage with brands – through a website, social media, mobile, or in person. 73% are likely to switch brands if they don’t get it. ~ Salesforce

 

Customer experience in the digital world

43. 85% of people trust online reviews as much as a personal recommendation. ~ BrightLocal

44. 97% of consumers read online reviews for local businesses in 2017, with 12% looking for a local business online every day. ~ BrightLocal

45. Consumers read an average of 7 reviews before trusting a business ~ BrightLocal

46. 64% of consumers and 80% of business buyers said they expect companies to respond to and interact with them in real time. ~ Salesforce

47. 80% of consumers report that immediate responses to requests influence their loyalty to a given brand. ~ Salesforce

48. 59% of 25-34-year-olds share poor customer experiences online. ~ New Voice Media

49. 70% of consumers say technology has made it easier than ever to take their business elsewhere. ~ Salesforce

50. 69% of digital media time is spent on mobile. ~ comScore

51. 61% of visitors to a mobile unfriendly site are likely to go to a competitor’s site instead. ~ Google

52. 57% of users say they won’t recommend a business with a poorly-designed mobile site. ~ Socpub

53. 13% of companies claim that 25% of service requests start socially. ~ thinkJar

54. Customer service interactions over Twitter have increased 250% in the last two years. ~ Twitter

55. 71% of Twitter users expect a brand to respond to their query within an hour. 63% received a response within that timeframe. ~ Twitter

56. Answering a social media complaint increases customer advocacy by as much as 25%. ~ Convince and Convert

57. 96% of users who had a friendly customer service experience with a brand on Twitter would buy from that brand again. ~ Twitter

58. 55% of customer requests for service on social media are not acknowledged. ~ thinkJar

59. 84% of social media service interactions are escalated to other channels. ~ thinkJar

60. 72% of Facebook interactions are never completed, in any channel. ~ thinkJar

61. 8out of10 businesses have already implemented or are planning to adopt AI as a customer service solution by 2020. ~ Oracle

62. Intelligent automation will manage 85% of businesses’ customer relationships by 2020. ~ Gartner

62 Customer Experience Statistics Every Business Needs To Know: the takeaway

As the stats show, customer experience has become hugely important in today’s global marketplace.

It’s now the only way a business can achieve true stand out and success in a world where the power lies firmly in the hands of the customer.

Increasing customer expectations, the rise of digital channels and significant advances in new technology are bringing even more exciting developments.

In fact, we predict the world of CX will change immensely over the coming years. Is your business ready to take on the customer experience challenge?

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