Why Companies Should Invest in the Customer Experience (2024)

Why Companies Should Invest in the Customer Experience

Companies spend millions on advertising every year, but is it worth it?

Sure, companies need to get their names out there, but maybe even more important for the acquisition of new customers are the experiences of existing ones.

The Value of Customer Experience

Good Experiences Grab Customers

40% of people began purchasing from a competitive brand because of its reputation for great customer service

55% are willing to recommend a company due to outstanding service, more so than product or price

85% would pay up to 25% more to ensure a superior customer service experience

Top Reasons Why Customers Switch Brands

Interaction with a rude employee

Unexpected charge or fee

Poor quality of product or service

Bad Experiences Push Them Away

82% of people have stopped doing business with a company due to bad customer service

95% of customers have taken action as a result of a bad experience. Of those, 79% told others about their experience.

Colleagues

Where the Customer Is King

In terms of good customer experiences, these companies get it right. Satmetrix recently ranked companies with the best customer loyalty in a variety of industries.

Airline

JetBlue

Auto Insurance

USAA

Brokerage & Investments

Vanguard

Cable & Satellite TV

Verizon

Cell Phone Service

Metro PCS

Computer Hardware

Apple

Consumer Software

Symantec

Credit Cards

American Express

Dept., Wholesale & Specialty Stores

Costco

Grocery & Supermarkets

Trader Joe's

Health Insurance

Kaiser Permanents

Life Insurance

State Farm

Online Search & Information

Google

Online Shopping

Amazon.com Why Companies Should Invest in the Customer Experience Companies spend millions on advertising every year, but is it worth it? Sure, companies need to get their names out there, but maybe even more important for the acquisition of new customers are the experiences of existing ones. The Value of Customer Experience r*******te Good Experiences Grab Customers Bad Experiences Push Them Away 40% began purchasing from a competitive brand because of its reputation for of people great customer service 82% have stopped doing business with a of people company due to bad customer service 55% of customers have taken action as a result 95% of a bad experience. Of those, 79% told others about their experience. are willing to recommend a company due to outstanding service, more so than product or price would pay up to 25% more to ensure a 85% superior customer service experience 55% 66% wanted to 85% vent anger R Top Reasons Why Customers Switch Brands wanted to discourage others from buying from the company wanted to warn others about doing business with the company wanted to see if the Interaction with a rude employee 24% company would take action to resolve the issue A Unexpected charge or fee A Poor quality of product or service The Power of Persuasion The Great Divide 4% of Americans Only Businesses are expected to spend $214.3 Billion But... in advertising in 2011. trust advertising the most as a source for product or service information. Trusted Sources Though significantly more money is spent on advertising than customer service, a recent study shows word-of-mouth recommendations from customers with good experiences are more influential than ads. 83% İİİİTİİ These #n: Family Friends trust independent sources with whom they have a personal relationship over advertising. include: Colleagues Where the Customer Is King In terms of good customer experiences, these companies get it right. Satmetrix recently ranked companies with the best customer loyalty in a variety of industries. Brokerage & Investments Cable & Satellite TV Auto Airline Insurance JetBlue USAA Vanguard Verizon Cell Phone Service Credit Computer Hardware Consumer Software Cards Metro PCS Apple Symantec American Express Dept., Wholesale & Specialty Stores Grocery & Supermarkets Health Life Insurance Insurance %24 Costco Trader Joe's Kaiser Permanente State Farm Online Search Online & Information Shopping Google Amazon.com zendesk Sources: Harris Interactive, RightNow, TechCrunch, Satmetrix, SNL Kagan LOVE YOUR HELP DESK Why Companies Should Invest in the Customer Experience Companies spend millions on advertising every year, but is it worth it? Sure, companies need to get their names out there, but maybe even more important for the acquisition of new customers are the experiences of existing ones. The Value of Customer Experience 幽大た大え九九大え Good Experiences Grab Customers Bad Experiences Push Them Away 40% began purchasing from a competitive brand because of its reputation for of people great customer service 82% have stopped doing business with a of people company due to bad customer service 55% of customers have taken action as a result 95% of a bad experience. Of those, 79% told others about their experience. are willing to recommend a company due to outstanding service, more so than product or price would pay up to 25% more to ensure a 85% superior customer service experience 55% 66% wanted to 85% vent anger R Top Reasons Why Customers Switch Brands wanted to discourage others from buying from the company wanted to warn others about doing business with the company wanted to see if the 因 Interaction with a rude employee 24% company would take action to resolve the issue A Unexpected charge or fee A Poor quality of product or service The Power of Persuasion The Great Divide 4% of Americans Only Businesses are expected to spend $214.3 Billion But... in advertising in 2011. trust advertising the most as a source for product or service information. Trusted Sources Though significantly more money is spent on advertising than customer service, a recent study shows word-of-mouth recommendations from customers with good experiences are more influential than ads. 83% TTTİ These #n: Family Friends trust independent sources with whom they have a personal relationship over advertising. include: Colleagues Where the Customer Is King In terms of good customer experiences, these companies get it right. Satmetrix recently ranked companies with the best customer loyalty in a variety of industries. Brokerage & Investments Cable & Satellite TV Auto Airline Insurance JetBlue USAA Vanguard Verizon Cell Phone Service Credit Computer Hardware Consumer Software Cards Metro PCS Apple Symantec American Express Dept., Wholesale & Specialty Stores Grocery & Supermarkets Health Life Insurance Insurance %24 Costco Trader Joe's Kaiser Permanente State Farm Online Search Online & Information Shopping Google Amazon.com zendesk Sources: Harris Interactive, RightNow, TechCrunch, Satmetrix, SNL Kagan LOVE YOUR HELP DESK Why Companies Should Invest in the Customer Experience Companies spend millions on advertising every year, but is it worth it? Sure, companies need to get their names out there, but maybe even more important for the acquisition of new customers are the experiences of existing ones. The Value of Customer Experience 幽大た大え九九大え Good Experiences Grab Customers Bad Experiences Push Them Away 40% began purchasing from a competitive brand because of its reputation for of people great customer service 82% have stopped doing business with a of people company due to bad customer service 55% of customers have taken action as a result 95% of a bad experience. Of those, 79% told others about their experience. are willing to recommend a company due to outstanding service, more so than product or price would pay up to 25% more to ensure a 85% superior customer service experience 55% 66% wanted to 85% vent anger R Top Reasons Why Customers Switch Brands wanted to discourage others from buying from the company wanted to warn others about doing business with the company wanted to see if the 因 Interaction with a rude employee 24% company would take action to resolve the issue A Unexpected charge or fee A Poor quality of product or service The Power of Persuasion The Great Divide 4% of Americans Only Businesses are expected to spend $214.3 Billion But... in advertising in 2011. trust advertising the most as a source for product or service information. Trusted Sources Though significantly more money is spent on advertising than customer service, a recent study shows word-of-mouth recommendations from customers with good experiences are more influential than ads. 83% TTTİ These #n: Family Friends trust independent sources with whom they have a personal relationship over advertising. include: Colleagues Where the Customer Is King In terms of good customer experiences, these companies get it right. Satmetrix recently ranked companies with the best customer loyalty in a variety of industries. Brokerage & Investments Cable & Satellite TV Auto Airline Insurance JetBlue USAA Vanguard Verizon Cell Phone Service Credit Computer Hardware Consumer Software Cards Metro PCS Apple Symantec American Express Dept., Wholesale & Specialty Stores Grocery & Supermarkets Health Life Insurance Insurance %24 Costco Trader Joe's Kaiser Permanente State Farm Online Search Online & Information Shopping Google Amazon.com zendesk Sources: Harris Interactive, RightNow, TechCrunch, Satmetrix, SNL Kagan LOVE YOUR HELP DESK Why Companies Should Invest in the Customer Experience Companies spend millions on advertising every year, but is it worth it? Sure, companies need to get their names out there, but maybe even more important for the acquisition of new customers are the experiences of existing ones. The Value of Customer Experience 幽大た大え九九大え Good Experiences Grab Customers Bad Experiences Push Them Away 40% began purchasing from a competitive brand because of its reputation for of people great customer service 82% have stopped doing business with a of people company due to bad customer service 55% of customers have taken action as a result 95% of a bad experience. Of those, 79% told others about their experience. are willing to recommend a company due to outstanding service, more so than product or price would pay up to 25% more to ensure a 85% superior customer service experience 55% 66% wanted to 85% vent anger R Top Reasons Why Customers Switch Brands wanted to discourage others from buying from the company wanted to warn others about doing business with the company wanted to see if the 因 Interaction with a rude employee 24% company would take action to resolve the issue A Unexpected charge or fee A Poor quality of product or service The Power of Persuasion The Great Divide 4% of Americans Only Businesses are expected to spend $214.3 Billion But... in advertising in 2011. trust advertising the most as a source for product or service information. Trusted Sources Though significantly more money is spent on advertising than customer service, a recent study shows word-of-mouth recommendations from customers with good experiences are more influential than ads. 83% TTTİ These #n: Family Friends trust independent sources with whom they have a personal relationship over advertising. include: Colleagues Where the Customer Is King In terms of good customer experiences, these companies get it right. Satmetrix recently ranked companies with the best customer loyalty in a variety of industries. Brokerage & Investments Cable & Satellite TV Auto Airline Insurance JetBlue USAA Vanguard Verizon Cell Phone Service Credit Computer Hardware Consumer Software Cards Metro PCS Apple Symantec American Express Dept., Wholesale & Specialty Stores Grocery & Supermarkets Health Life Insurance Insurance %24 Costco Trader Joe's Kaiser Permanente State Farm Online Search Online & Information Shopping Google Amazon.com zendesk Sources: Harris Interactive, RightNow, TechCrunch, Satmetrix, SNL Kagan LOVE YOUR HELP DESK Why Companies Should Invest in the Customer Experience Companies spend millions on advertising every year, but is it worth it? Sure, companies need to get their names out there, but maybe even more important for the acquisition of new customers are the experiences of existing ones. The Value of Customer Experience 幽大た大え九九大え Good Experiences Grab Customers Bad Experiences Push Them Away 40% began purchasing from a competitive brand because of its reputation for of people great customer service 82% have stopped doing business with a of people company due to bad customer service 55% of customers have taken action as a result 95% of a bad experience. Of those, 79% told others about their experience. are willing to recommend a company due to outstanding service, more so than product or price would pay up to 25% more to ensure a 85% superior customer service experience 55% 66% wanted to 85% vent anger R Top Reasons Why Customers Switch Brands wanted to discourage others from buying from the company wanted to warn others about doing business with the company wanted to see if the 因 Interaction with a rude employee 24% company would take action to resolve the issue A Unexpected charge or fee A Poor quality of product or service The Power of Persuasion The Great Divide 4% of Americans Only Businesses are expected to spend $214.3 Billion But... in advertising in 2011. trust advertising the most as a source for product or service information. Trusted Sources Though significantly more money is spent on advertising than customer service, a recent study shows word-of-mouth recommendations from customers with good experiences are more influential than ads. 83% TTTİ These #n: Family Friends trust independent sources with whom they have a personal relationship over advertising. include: Colleagues Where the Customer Is King In terms of good customer experiences, these companies get it right. Satmetrix recently ranked companies with the best customer loyalty in a variety of industries. Brokerage & Investments Cable & Satellite TV Auto Airline Insurance JetBlue USAA Vanguard Verizon Cell Phone Service Credit Computer Hardware Consumer Software Cards Metro PCS Apple Symantec American Express Dept., Wholesale & Specialty Stores Grocery & Supermarkets Health Life Insurance Insurance %24 Costco Trader Joe's Kaiser Permanente State Farm Online Search Online & Information Shopping Google Amazon.com zendesk Sources: Harris Interactive, RightNow, TechCrunch, Satmetrix, SNL Kagan LOVE YOUR HELP DESK Why Companies Should Invest in the Customer Experience Companies spend millions on advertising every year, but is it worth it? Sure, companies need to get their names out there, but maybe even more important for the acquisition of new customers are the experiences of existing ones. The Value of Customer Experience 幽大た大え九九大え Good Experiences Grab Customers Bad Experiences Push Them Away 40% began purchasing from a competitive brand because of its reputation for of people great customer service 82% have stopped doing business with a of people company due to bad customer service 55% of customers have taken action as a result 95% of a bad experience. Of those, 79% told others about their experience. are willing to recommend a company due to outstanding service, more so than product or price would pay up to 25% more to ensure a 85% superior customer service experience 55% 66% wanted to 85% vent anger R Top Reasons Why Customers Switch Brands wanted to discourage others from buying from the company wanted to warn others about doing business with the company wanted to see if the 因 Interaction with a rude employee 24% company would take action to resolve the issue A Unexpected charge or fee A Poor quality of product or service The Power of Persuasion The Great Divide 4% of Americans Only Businesses are expected to spend $214.3 Billion But... in advertising in 2011. trust advertising the most as a source for product or service information. Trusted Sources Though significantly more money is spent on advertising than customer service, a recent study shows word-of-mouth recommendations from customers with good experiences are more influential than ads. 83% TTTİ These #n: Family Friends trust independent sources with whom they have a personal relationship over advertising. include: Colleagues Where the Customer Is King In terms of good customer experiences, these companies get it right. Satmetrix recently ranked companies with the best customer loyalty in a variety of industries. Brokerage & Investments Cable & Satellite TV Auto Airline Insurance JetBlue USAA Vanguard Verizon Cell Phone Service Credit Computer Hardware Consumer Software Cards Metro PCS Apple Symantec American Express Dept., Wholesale & Specialty Stores Grocery & Supermarkets Health Life Insurance Insurance %24 Costco Trader Joe's Kaiser Permanente State Farm Online Search Online & Information Shopping Google Amazon.com zendesk Sources: Harris Interactive, RightNow, TechCrunch, Satmetrix, SNL Kagan LOVE YOUR HELP DESK

FAQs

Why Companies Should Invest in the Customer Experience? ›

Using superior customer experience to strengthen customer retention and brand loyalty and reputation can increase customer lifetime value, referrals, and sales revenue.

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Why should companies care about customer experience? ›

It is embedded into every interaction, and each interaction is an opportunity to build a stronger bond between the company and the customer—or has the potential to weaken that bond. Good customer experience involves building a relationship by understanding what people want, need and value.

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Why is it important to provide a great customer experience answer? ›

Good customer service always helps retain your customers. It is what keeps your customers coming back for more purchases. Retaining customers increases your revenue and it's also much cheaper to keep a customer than to try to gain a new one.

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Why is it important for a business to have a customer experience management strategy? ›

CX is an integral part of Customer Relationship Management (CRM) and the reason why it's important is because a customer who has a positive experience with a business is more likely to become a repeat and loyal customer. One of the biggest benefits of customer experience is higher profits.

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Why invest in customer service? ›

Investing in customer service can increase revenue by improving customer satisfaction, retention, and CLV. Happy customers are more likely to spend more on your business when they feel heard and valued.

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Why is customer experience important? ›

Perhaps the most important reason why customer experience is important is because consumers expect consistently satisfying experiences from companies. In fact, Salesforce found that 88% of customers say the experience a company provides is as important as its products or services—the highest it's ever been.

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Why is experience important for a company? ›

Experience helps your company to deliver on its promises to customers and builds trust between your company and its customers. It also helps put the right people in the right jobs for your company.

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What is the value of customer experience? ›

Customers are likely to spend 140% more after a positive experience than customers who report negative experiences. 70% of Americans have spent more money to do business with a company that offers great service.

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What does customer experience mean best answer? ›

Customer experience is: the sum of all the interactions (including with product and price!) that a customer has with an organization over the life of the “relationship” with that company… and, more importantly, the feelings, emotions, and perceptions the customer has about those interactions.

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Why is it good to have customer service experience? ›

Because customer service experience spans both the pre and post-sale journey, it's a hugely important thing to focus on improving. After all, if customers enjoy a positive experience, you'll earn their loyalty, repeat purchases, and the chance that they'll influence their peers.

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What is the impact of customer experience? ›

So, what exactly is the impact of customer experience on customer loyalty and retention? A positive customer experience builds trust and emotional connections with your customers, making them feel valued and appreciated. This, in turn, creates a sense of loyalty and a desire to continue doing business with your brand.

What is the purpose of a customer experience strategy? ›

A customer experience strategy gives you the ability to understand your customer's behavior to deliver expectations. True proficiency over the customer experience means you can anticipate client needs and go beyond what is expected to cultivate loyalty and satisfaction.