Customer experience has been growing rapidly in the last few years because it is one of the most significant ways to differentiate your brand in this increasingly competitive market. Companies with great Customer Experience programs also achieve increased brand value, improved product development, increased acquisition and conversion rates, reduced customer churn, improved employee experience, and improved financial metrics.
If it results in such great results, why isn’t every company doing CX?
For many companies, convincing their senior executives of the value of investing in CX programs may be the toughest challenge they face. We have helped many of these companies get their programs started in small steps such as CX Roadmap, Journey Mapping Workshops, and Survey Strategy sessions, to name a few of the CX services we offer.
Here are some CX statistics that we have gathered and should get the attention of your CEO and CFO, and lead to further CX progress for your company.
- In the last 15 years, over half of the Fortune 500 companies have disappeared because they could not adapt themselves to the digitalization happening in the industry.
- By 2027, 75% percent of today’s S&P 500 companies will be replaced by new companies which are providing the best customer experience to their customers.
- $1.6 Trillion is the annual cost of customer churn due to poor experiences.
- 97% of executives believe that improving CX is very important to achieving or maintaining a competitive advantage.
- 80% of companies believe that they are providing a superior experience, but only 8% of their customers agree.
REVENUE Benefits of CX
- 56% of consumers say the overall enjoyment of the purchase experience is important in their decision to buy a product or service.
- 15% average annual revenue growth rate of ‘Experience-Driven Businesses’ vs other companies at 11%.
- 67% of customers say they will pay more for a great experience.
- 56% increase in cross-sell and up-sell revenue.
- 18x increase in average sales cycle time.
RETENTION Benefits of CX
- 90% of customers have stopped doing business with a company after experiencing poor service.
- 32% of consumers stop doing business with a brand after only 1 bad experience.
- 85% of customers who feel valued plan to spend more.
- 57% of consumers have stopped buying from a company because one of their competitors provided a better experience.
REFERRAL Benefits of CX
- 350% increase in customer referral value.
- 64% of consumers are more likely to recommend a brand to others if it offers a simpler experience and communications.
- 62% of consumers say they share bad experiences with other people.
- 71% of consumers recommend a product or service because they received a “great experience”.
If your company needs some guidance on how to start your CX program or wants to review your existing program for recommendations, CustomersFirst Now has been implementing successful CX programs for over 15 years, and we’d be happy to provide you with a free CX Strategy Session with one of our CX practitioners. Simply fill out our Contact Form to take the next step.