86% will pay more for a better experience

QUESTION – how do I maximise the average sale per customer?

THOUGHT – think strategically about the customer experience

There are always questions supported by doubt, when ever a study finds that people are willing to pay more for something that they are paying now or may have paid previously. There is this obsession in the western world and especially Australia, with price, even when the evidence to the contrary to intuition is compelling.

That said, I could cite a dozen studies where there has been a finding that people will pay more than they have paid previously in specific circumstances. Further, I believe these studies – partially because the findings are consistent – but also because the variables being tested actually change the product offering – meaning that instead of paying more for the same thing – people are indicating a preparedness to pay more for a superior product. They are indicating that price is just one variable.

A recent study found that 86% of customers are prepared to pay more for – or given – a superior customer experience. In other words, given the added value of a good customer experience consumers are prepared to increase their expenditure – driving up the average sale per customer.

This same study however found that only 1% of these customers indicated that their expectations were being met – suggesting that they will pay less, and the average sale will be lower

Another study found that:

  • 67% of B2C customers are prepared to pay more for a good customer experience
  • 74% of B2B customers are prepared to pay for a good customer experience

Even if these estimates are inflated by 50% or more – it is still apparent that a high number of B2C and B2B customers crave a better customer experience and believe they would spend more in that environment, while the previous study, even if a dramatic under-estimate suggests that most customer do not believe they are getting a satisfactory customer experience

Creating a customer experience that meets the expectations of consumers – both B2C and B2B, is central to maximising the average sale per customer. Customer whose expectations are met are more open to spending more than those customers whose expectations are not met.

That said, creating the optimal customer experience is very difficult if customers are no consulted in the creating of that customer experience – and in my experience that understanding rarely exists. More often than not businesses create a customer experience that suit their budget or the pre-conceptions of marketing managers, merchandisers and CEOs – who may or may not be members of the target market – and more often than not lack the customer insights they arrogantly believe they have.

THOUGHTS

Regardless of whether you are marketing B2C or B2B, it is important to create a customer experience that meats customer expectations.

In endeavouring to understand and address customer expectations it is important to look beyond our intuition and guesswork. Research can be very helpful.

SOURCES

Entrepreneur, Selfgrowth.com, MYOB, Business.com, SBIA, Hubspot, The Atlantic, Digital Pulse, PWC, Resourceful Selling, Impact, Genesys and Forbes
John

MORE THOUGHTS – www.djohncarlsonesq.com 

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