Customer experience is the single most important determinant of business success. This is something that we have been hearing about for decades, in everything from Harvard Business Review articles to Forrester reports. However, none of these studies include hard numbers on the benefits that could be derived from well-orchestrated CX strategies; hard details are few and far between.
Sitecore, which is a leader in digital marketing technology and in digital marketing solutions that transform customer experiences decided to research the quantifiable benefits of a customer experience strategy. They hired Vanson Bourne, together with Avanade, to conduct a global survey, and the results are truly mind-blowing!
The study, conducted with 880 decision makers in six countries, found that >for every dollar invested in improving the customer experience, businesses generated three dollars in return. Brands investing in customer experience have seen a 19% increase in revenue in the past 12 months.
Some of the core findings are:
Huge benefits have been seen as a result of focusing on the customer experience
- US $3 return on investment expected for every $1 invested in the customer experience
- Almost six in ten (58%) have seen increased customer satisfaction over the last 12 months
- Close to four in ten (37%) have seen improved sales cycles
- So many more benefits have been realized, and are expected in the near future
Keeping up with competition is driving the customer experience, more than the customers themselves
- 64% report that competition is a key driver, compared to 52% who say this is customer feedback
- Not many organizations are able to get in front of their customers wants and needs
- Only 14% admit that they are one step ahead of their customers’ changing expectations
Investment in technology, skills and people is how organizations are achieving benefits
- 78% of organizations are achieving benefits by investing in modern marketing technology
- Half (50%) do so by investing in skills and third-party expertise
Customer experience management is key
- Eight in ten (80%) consider it important to see a return on marketing investment
- 77% believe customer experience is important for delivering a strong, relevant customer experience
- 68% are investing in it in the next year Lifetime customers are of great value, but organizations need to make them feel appreciated
- 37% would compare their lifetime customers to diamonds and 46% to platinum
- Feeling undervalued is the most likely reason a customer would feel frustrated with a brand
Linakis Digital is a Sitecore Gold Implementation Partner and provides a unique set of CX services designed to drive results. Please feel free to contact us and explore how we can work together in order to achieve better CX for your customers.