Customer experience (CX) has become the thing that drives business growth and increases business revenue in 2020. Customers today expect an excellent brand experience regardless of the channel used. Any business with unique customer service across all channels of communication can significantly improve brand loyalty, customer satisfaction, traffic, sales, and ultimately, business revenue.
There are several ways to communicate with your customers if you wish to improve customer experience. There are many platforms to assist with this as well. According to customer experience statistics, the ultimate goal is to get them to become regular converting visitors to your business regardless of the channel employed in communicating (e.g. social media, live chat, website, etc).
In this article, we have compiled some of the best customer experience stats for 2020 to help you understand how it affects your business. Read on!
Eye-Opening Customer Experience Statistics for 2020
The following are some eye-opening customer experience stats that show why your business needs the issue seriously.
- When learning about a new product, 60% of customers say they trust the reviews that come from friends, family, and other customers.
- There is an 80% increase in revenue for businesses that focus on improving customer experience.
- Two-thirds of companies compete based on customer experience.
- 73% of customers agree that customer experience helps to drive their buying decision.
- 86% of customers say that they are ready to pay more if it means getting a better customer experience.
- Double the revenue of your business in 36 months if you improve the customer experience of your business to a satisfactory level.
- According to 67% of customers, companies are actively working towards improved customer service.
Now that you see why businesses are beginning to take customer experience seriously! Let’s dive into the details:
General Customer Experience Statistics
The stats that follow will show you why customer experience has become a crucial factor in business growth.
1. When learning about a new product, 60% of customers say they trust the reviews that come from friends, family, and other customers.
No one wants to go shopping, only to come back with an unsatisfactory product. Reviews provide a gateway to insights about a particular product before making a purchase. They ensure that a customer shop knowing what to expect, and comes out satisfied.
2. There is an 80% increase in revenue for businesses that focus on improving customer experience.
According to marketing customer experience statistics style=”font-weight: 400;”>, improving customer experience has to do with making data-driven decisions. By doing this, there is a high chance that they will revisit your business in the future. Also, they will recommend your services to others, which inadvertently leads to more sales and increased revenue.
3. Two-thirds of companies compete based on customer experience.
As of 2010, only 36% of businesses worldwide were competing on a customer experience basis. This goes to show how much marketing has changed from price and product being the critical brand differentiators to customer experience now taking the center stage.
4. 73% of customers agree that customer experience helps to drive their buying decision.
Excellent customer experience starts from the moment your customers come in contact with your business, and it doesn’t even after they have started using your product and are satisfied. Think about how many times you have left a website because it took too much time to load. To avoid this, use a good website builder, backed up by a reliable hosting provider.
Furthermore, do you recall the number of times you bought a product just because they offered free delivery or installation? If you make your customers’ buyer journey convenient, engaging, and flexible enough, you would have successfully won their trust. According to customer satisfaction statistics, this drastically increases your chances of them buying from you again.
5. 86% of customers say that they are ready to pay more if it means getting a better customer experience.
(Source: Super Office)
Come to think of it, who doesn’t want a proper treatment? Who wouldn’t want to deal with a brand that goes all the way to ensure that their buyer’s journey is always stress-free? Customer experience statistics for 2020 reveal that customers are willing to pay as high as 13% to 18% more for a product or service, provided they receive excellent customer experience.
6. You can double your business revenue in 36 months if you improve the customer experience of your business to a satisfactory level.
(Source: Super Office)
The customer experience (CX) helps you to increase your sales and save costs from various angles in your business. Take, for example, the issue of onboarding and employee engagement. Having an excellent CX system ensures that you already have an engaged workforce. According to facts about customer experience, having a highly engaged workforce improves your company’s employee retention rate. This, in turn, saves you the cost of new hires and onboarding them, which sometimes runs into millions.
7. 49% of customers agree that they have made impulse purchases after an excellent customized personal experience with a brand.
(Source: Dot Digital)
Personalization in customer experience has a direct impact on sales and revenue increase. It is the designing of products/services to meet individual customer requirements. According to customer buying experience statistics, marketing personalization starts from the moment you exchange your first message with a client up until they have made a purchase. Recent research revealed that 56% of top professionals involved in customer experience strive to improve the personalization of customer communication.
8. Customer satisfaction and retention, plus improved up-selling and cross-selling, are the main reasons businesses are trying to improve their customer experience.
(Source: Super Office)
Customers are the life of any business. If your business is not striving to keep them happy, then they won’t last long. Your customers will only stay loyal to your brand when they are satisfied with it. Once customers are loyal, you have a higher chance of success when up-selling and cross-selling other items. According to customer experience statistics, improved cross-selling and up-selling (42%), improved customer retention (33%), and improved customer satisfaction (32%) are the major reasons why a business would want to enhance its customer experience. Addressing each of these can have a significant positive impact on the bottom lines of any business.
9. 88% of businesses now prioritize customer experience in all of their contact centers.
(Source: Sharpen CX)
According to digital customer experience statistics, contact centers are locations used by large organizations to handle all sorts of communication with customers. It could be email, phone calls, fax, social media handles, or even live chat. These contact centers now have quicker response time and one-on-one engagement regarding customer needs on various communication channels. All of those serve as a way of improving customer experience.
10. 87% of business leaders agree that exceptional customer experience is a must for their organization.
(Source: Smart Insights)
Customer experience is the metric prospective clients look out for when trying to decide which business to work with. Lots of firms offer similar services, but not everyone can provide the same customer experience. According to customer experience statistics, most business leaders believe that customer experience is essential to them. However, 11% feel that CX is somewhat important. Only 2% say that customer experience is either not important at all, or not so important to their business.
The Business Impact of Customer Experience
Customer experience and profitability statistics reveal that excellent customer experience will increase your chances of winning more customers and making more sales. The following are a few impacts that customer experience can make on any business.
11. Businesses that prioritize customer experience have a revenue increase of 4-8% higher than their competitor.
With the amount of competition in the market, businesses that offer the best customer experience stand the best chance of winning. Customers who have previously had an encounter with your brand will most likely return for another deal. Plus, you get to have free referrals from past satisfied clients as revealed by B2B customer experience statistics.
12. 89% of consumers have moved to a competitor following a poor customer experience with a brand.
How many times have you abandoned a shopping cart due to a difficult purchasing process? Many, we’d guess. That is how bad poor customer experience can be for any business. The worst part is that most of these customers will leave without telling you why.
13. Customer-focused companies increase their revenue 1.4x faster than non-customer-focused companies.
According to customer experience value statistics, customer lifetime value also increases by 1.6x for customer-focused companies. When a workforce is highly engaged, things are done faster and more efficiently. Plus, an excellent customer experience increases loyalty to your brand, which reflects on the lifetime value of any customer.
14. Customer experience technologies will cost businesses $641 billion by 2022.
More businesses are beginning to understand the importance of customer experience. This has prompted increased spending on technologies like Big Data, artificial intelligence, and data analytics that bring about actionable insights on customers. These insights can be used to improve the overall customer experience. In 2018, the total spending on customer-related technologies was $471 billion. Fast-forward to the end of 2019, and that figure rose to $508 billion. It is predicted the figure would rise even further, given that there are still more enterprises that are yet to jump onto the customer experience bandwagon.
15. 74% of customers will most likely switch brands if their favorite one’s purchasing process gives a miserable experience.
One of the surest ways to ward off customers is to make their purchasing process a difficult one. According to customer experience research statistics, convenience is a critical factor when providing an excellent customer experience. If your customer service doesn’t offer comfort to your customers, they will most likely seek your competitor.
Positive Customer Experience Statistics
The following are some positive customer experience statistics to show its ever-increasing importance to the success of a business.
16. According to 70% of customers, excellent customer experience should be fast, convenient, helpful, and must do all of that in a friendly manner.
The qualities mentioned above are the ideal pillars of an excellent customer service team as revealed by customer experience report statistics. They should not be taken for granted if the goal is to deliver exceptional customer experience throughout the buyer journey.
17. A positive customer experience encounter can increase customer spending by up to 140%.
According to customer experience stats for 2020, people are likely to deal with your brand in a much larger capacity, become more loyal to it, and even recommend it to others if their previous experiences with you were positive.
18. 87% of customers would come back to make another purchase from a brand if their previous experience(s) were recorded as very good.
(Source: Experience Matters)
This is the same point that this article has been trying to drive home from the start. Once your customer service is fast, convenient, consistent, friendly, and always available, people would become loyal. However, customer experience stats show that only 18% would return if they reportedly had an abysmal experience with your brand.
Bad Customer Experience Statistics
Bad customer experience can cause you to lose your brand reputation, customers, and most importantly, lose money. Read on to discover some bad customer experience statistics.
19. 57% of customers say that they don’t recommend a brand if it has a poorly designed website that is not optimized for mobile.
Over the last decade, mobile usage has been on the rise. As of the end of 2019, it accounted for 52.6% of all internet traffic globally.
If your website is not optimized for mobile, then you are missing out on the 3.9 billion potential customers that your business can potentially attract.
20. 50% of customers will stop visiting a website if it is not mobile-friendly.
(Source: True List)
Conducting businesses on mobile is easy, fast, convenient, and cost-effective. That explains why you must find a way for your business to show up on mobile. There’s a high chance that your competitors are optimizing for mobile as well, and if you don’t do the same, you will soon be out of business.
21. 92% of customers would forget about a brand after experiencing two or three negative customer experiences with that same brand.
(Source: Super Office)
Customer experience stats also reveal that 1 in 3 customers will forget about a brand after just one negative experience. Good customer experience is non-negotiable if your business is to survive the current market.
22. Only 19.3% of customers that have had a bad customer experience with a brand will report directly to such brand.
(Source: Smart Insights)
What’s more is that 33.7% of these customers will talk to family and friends over the phone, email, or even in person, about their poor customer experience. In addition, 10.7% of these customers will prefer to write about their bad experience on Facebook. Another 4.5% will prefer to do so on Twitter. 9.9% would post about their poor experience with your brand on a third party website. Just one poor experience with a customer can significantly affect your brand’s reputation. This is more reason why customer experience needs proper attention.
Customer Service Statistics
Customer service has to do with how well you treat your customers. In this section, we will introduce you to some of the most surprising customer service statistics for 2020 that you will find on the internet.
23. More than 70% of customer experience leaders in an organization are reportedly struggling to create projects that focus on increasing customer experience.
Business leaders are struggling because most of their customer experience-based projects are prioritizing customer journey management, social media engagement, and analytics. But in truth, customer data management is the most important key metric that can help companies deliver personalized messages to customers. It is one area that should get the most attention.
24. 96% of customers agree that customer service plays a vital role in their choice of loyalty to a brand.
When you make the customer journey seamless at all times, customers will repay you with loyalty and recommend your brand to almost anyone. The opposite applies to poor customer experience.
25. Customer service-focused companies have employees that are 1.5X more engaged than those who don’t.
(Source: Experience Matters)
Employee engagement has a direct correlation with customer experience. Companies with a highly engaged workforce far outperform their closest competition by 147% in terms of earnings. Statistics on customer service show that a highly engaged organization will strive to ensure improved customer experience as it is the critical metric for increased sales.
26. US companies lose $1.6 trillion yearly due to poor customer service.
Poor customer service in this age and time is a no-no for any business. This follows as platforms like social media can quickly destroy the reputation of an organization due to poor reviews.
27. According to 67% of customers, companies are actively working towards improved customer service.
We exist in an era where personalization is key to determining how people perceive your brand. Businesses today are investing in a whole lot of customer service-related technologies such as Big Data, AI, data analytics, etc, all in a bid to provide the best possible personalized customer experience.
The result? More than half of consumers now agree that their favorite brand’s customer service has improved.
Customer Experience Trends in 2020
The following are some customer experience trends taking over the market and are fast becoming a norm for businesses today.
28. 80% of companies are now investing in the omnichannel experience.
(Source: Super Office)
Omnichannel is a multi-channel approach with the sole aim of providing seamless customer experience to clients irrespective of their shopping channel. It could be through mobile, desktop, tablets, phone call, or in-store. Regardless of which it is, the quality of service remains the same.
According to customer experience stats, in 2010, we had just 20% of companies investing in the omnichannel experience globally. But now, almost every business is trying to adopt it into their infrastructure, and more are expected to follow suit in the coming years.
29. Companies with the best omnichannel experience for its customers enjoy a 10% year-on-year growth.
Aside from this, an omnichannel experience goes further to improve customer retention rates and reduce your cost per lead. With an omnichannel approach, your customer’s buyer journey is seamless, convenient, and highly engaging. As such, you stand a better chance of retaining them. Increased retention rate means you have to spend less acquiring new sales – your retained customers will most likely come back to do more business with you and refer your services to others.
30. 84% of customers-centric companies are now focusing their efforts on improving mobile customer experience.
(Source: Vision Critical)
Improving customer experience is good, but it has to be done on all of your communication channels. Customer statistics has it that customers spend more time on mobile today than they do with any other device. Improving customer experience on mobile will not only increase your sales, but it will also help to increase your brand popularity.
31. 67% of customers say that they would prefer self-service over speaking with a company representative.
(Source: Zen Desk)
Self-service is the new norm, and customers love it already. If there is any possibility that they can be allowed to source for what they want on their own, then they will do so, especially the millenials. At this point, your job is to provide them with the tools and information they need to navigate through your shop with ease.
32. AI and machine learning would handle about 40% of all customer interactions by 2023.
(Source: Super Office)
Artificial intelligence has been one of the most crucial breakthrough technologies and is currently being applied across various industries worldwide. One such sector is the customer care industry. With the aid of machine learning and other AI-related tools, bots have been designed to handle communication with customers 24/7. Customer service stats have it that as of 2018, just 25% of customer interactions were automated through AI and machine learning.
33. 90% of business leaders have reportedly increased their customer experience a good deal since they started using data analytics reports.
Data analytics helps you draw insights from customer data to know what your customers need. Companies working without data analytics in today’s market are quickly phasing out because those with the right data will always be miles ahead and will get the most sales. That’s why the data visualization market is on the rise for the last years.
Customer experience statistics are revealing, as they help you understand the current state of the market. There are just too many competitors out there, and your customers would gladly switch to any of them if you give room for unsatisfactory results.
Is your business providing top-notch customer experience to its clients?