Measuring the return on investment for customer experience can be a difficult task. For many businesses, it can be tough to determine how adding or removing something from their current experience would make an impact on their bottom line. And yet, smart marketers recognize that investing in the customer experience and creating a customer-centric culture is an increasingly important priority for the long-term success of a business.
So, how do you make a case for investing in customer experience when it can be hard to justify the cost in your business’ current mode of operation? In this post, I want to highlight a few recent statistics that speak to the importance of investing in the customer experience.
5 Statistics on Customer Experience Every Marketer Should Know
1. A Bad Experience Costs Money
After a bad experience with a company, 22% of consumers decreased their spending, and 19% completely stopped doing business with the company. (Source)
If you need a good reason to share with your CEO or supervisor, this is a good place to start. A series of bad customer experiences could directly impact your bottom line, in both the short- and long-term.
2. Bad Experiences Spread
After a bad experience, 30% of consumers tell the company, 50% tell their friends, 15% provide feedback on rating sites, and 14% tweet about it. (Source)
These statistics are fascinating. You might not know if a customer has a bad experience, but their peers and friends likely will. In a time where managing your brand’s reputation online is crucial, it’s essential to ensure you’re working hard to provide a good experience for customers, or at least doing everything you can to rectify a bad one.
3. Good Experiences Spread
Customers who have a good experience are 5X more likely to recommend your product or service than if they have a very poor experience. (Source)
Not only does a good experience prevent the fall out that occurs from a negative one, but it also propels the potential success of your business. Think about the impact it could have on your revenue if half of your customer base shared about their positive experience with your product or service with another potential customer.
4. Good Customer Experiences Multiply Sales Revenue
When customers have an excellent experience, they are 3.5 times more likely to make additional purchases than if they have a bad experience (Source)
We all know it’s a lot cheaper and easier to keep existing customers than it is to acquire a new one. But creating positive experiences for customers doesn’t just ensure they stay; it also increases their likelihood to spend more!
5. Customer Experience Needs to be Valued at the Senior Leadership Level
81% of companies with an above-average customer experience have senior leadership leading their efforts, compared to 53% of less mature companies (Source).
If you want customer experience to move the needle for your company, it needs to be valued by senior leadership. These statistics will hopefully help you make the case.
Investing in customer experience is one of the easiest ways to get more customers for your business in 2020. Whether you neglect or invest in the customer experience, your action will impact your bottom line. The question is: do you want a negative or positive impact?
Contact Green Apple Strategy to explore where your marketing efforts can positively impact your business’ bottom line.