Successful marketing is about more than winning clients. Lifecycle marketing and customer experience play a huge role in marketing success. It’s not just about winning a customer; it’s about that customer’s experience in their journey with your brand. Winning the customer is only the start of that journey. From there, it’s all about engaging and retaining the client.
Here are 21 reasons why your organization should be focused on customer experience:
- The customer experience will reign as the primary investment target in 2014 as 68% of businesses plan to increase their customer management spend. (2014 Call Center Executive Priorities Report)
- Reducing your customer defection rate by 5% can increase your profitability by 25 to 125%. (Leading on the Edge of Chaos, Emmet Murphy and Mark Murphy)
- In 2013, 62% of global consumers switched service providers due to poor customer service experiences, up 4% from the previous year. (Accenture Global Consumer Pulse Survey)
- 70% of buying experiences are based on how the customer feels they are being treated. (McKinsey)
- According to a CEI Survey, 86% of buyers will pay more for a better customer experience, but only 1% of customers feel that vendors consistently meet their expectations. (Forbes)
- A 2% increase in customer retention has the same effect as decreasing costs by 10%. (Leading on the Edge of Chaos, Emmet Murphy and Mark Murphy)
- By 2020, customer experience will overtake price and product as the key brand differentiator. (Customers 2020 Report)
- The customer of 2020 will be more informed and in charge of the experience they receive. They will expect companies to know their individual needs and personalize the experience. Immediate resolution will not be fast enough as customers will expect companies to proactively address their current and future needs. (Customers 2020 Report)
- 63% of companies expect to spend significantly more on customer experience in 2014 than they did in 2013, which is up from 54% in 2012 and 46% in 2011. (Temkin Group)
- In a poll of enterprise contact centers by Deloitte, 82% view the customer experience as a competitive differentiator, and view accuracy and quality of information provided (82%), as well as ease of interaction (73%), as the most important attributes of a quality customer experience. (Deloitte’s 2013 Global Contact Center Survey Report)
- While 73% of companies with the most positive CX impact understand the link between customer experience and business results, only 35% of companies with the least positive CX impact claim the same. (Temkin Group Customer Experience Expectations and Plans for 2014)
- The revenue impact from a 10-percentage point improvement in a company’s customer experience score can translate into more than $1 billion. (The Business Impact of Customer Experience)
- A customer is 4 times more likely to defect if the problem is service related than if the problem is price or product related. (Client Heartbeat)
- The probability of selling to an existing consumer is 60-70%. The probability of selling to a new prospect is 5-20%. (Client Heartbeat)
- 96% of unhappy customers will not complain, however 91% of those will leave and never come back. (Client Heatbeat)
- It costs 6-7 times as much to acquire a new customer than retain an existing one. (Client Heartbeat)
- On average, loyal customers are worth up to 10 times as much as their first purchase. (SalesForce Desk)
- Customers who engage with companies over social media spend 20-40% more money with those companies compared to other consumers. (Bain & Company)
- More than 60% of consumers are influenced by other consumers’ comments.
- Poor customer experience results in an estimated loss of $83 billion by US enterprises because of defections and abandoned purchases. (Parature )
- Amazon had the best customer satisfaction (91.7%). Amazon also achieved the strongest sales growth (20%). (Institute of Customer Service)
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