Customer experience is a crucial aspect of business success, and numerous statistics highlight its importance. Here are some key statistics that demonstrate the significance of customer experience:
Customer Loyalty: According to a study by PwC, 73% of customers consider customer experience as an essential factor when making purchasing decisions.
Revenue Impact: Research by Temkin Group shows that companies that excel in customer experience outperform their competitors, with a 16.9% average increase in revenue growth compared to companies that lag in customer experience.
Repeat Business: A study by Adobe found that 40% of consumers are more likely to become repeat customers after having a positive experience with a company.
Word-of-Mouth Recommendations: Happy customers tend to share their positive experiences. According to a Nielsen survey, 77% of customers are likely to recommend a company to a friend after a positive experience.
Negative Experiences: On the flip side, a study by Esteban Kolsky found that 13% of unhappy customers will share their experience with 15 or more people, potentially damaging a company’s reputation.
Brand Perception: Research by Walker found that by the year 2020, customer experience will overtake price and product as the key brand differentiator.
Customer Retention: Bain & Company research shows that increasing customer retention rates by just 5% can lead to a profit increase of 25% to 95%.
Customer Acquisition Cost: It is more cost-effective to retain existing customers than to acquire new ones. According to Harvard Business Review, acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one.
Competitive Advantage: A study by Gartner revealed that 81% of companies expect to compete mostly or entirely based on customer experience by 2022.
Online Reviews: According to BrightLocal, 82% of consumers read online reviews for local businesses, and 91% of 18-34-year-olds trust online reviews as much as personal recommendations.
These statistics highlight the impact of customer experience on customer loyalty, revenue growth, brand perception, and overall business success. Investing in delivering exceptional customer experiences can lead to long-term success and a competitive advantage in today’s market.
D. John Carlson – Marketing Consultant Perth.
Maximising performance through ethical customer centric marketing, branding, and communication.
Advisor – Director – Mentor.
Consumer insights – strategic planning – marketing consultancy – branding consultancy – communication consultancy – culture consultancy – strategic marketing advisor.