Consumers will pay Organizations more for a Great Customer Experience.

According to the fifth annual Customer Experience Report, customer experience is playing a significant role in determining where consumers choose to shop and how much they are willing to spend. Results show that exceptional customer experience creates loyal customers and has the power to impact a company’s top and bottom lines.

Nearly all consumers (85 percent) said they would be willing to pay more over the standard price of a good or service to ensure a superior customer experience. Of those consumers that said they would pay more for an excellent customer experience:

* 55 percent would pay 10 percent or more
* 27 percent would pay 15 percent or more
* 10 percent would pay 25 percent or more

Customer Experience, the Secret Weapon for Driving Revenue

These results show that delivering a positive customer experience can help organizations increase revenue. For example, in 2009 Cyber Monday alone generated $887 million in revenue for e-retailers. Based on the results of this study the industry could have generated an additional $87 million in revenue in just one day by providing superior customer experience.

This year’s research also shows that a great customer service experience significantly impacts purchasing decisions:

* Nearly all consumers (82 percent) have stopped doing business with an organization as a result of negative experience and most (75 percent) do not return
* 55 percent of consumers became customers of a company based on its reputation for great customer service, and 40 percent of consumers have switched to a competitive brand simply because of its reputation for exceptional service

“This year’s report not only demonstrates the financial impact of a negative customer experience, but the real value of positive customer experiences. By focusing on delivering exceptional experiences, businesses have the opportunity to grow their customer base, improve brand loyalty and increase overall revenue.”

The Power of Word of Mouth

Consumers not only voice their customer experience preferences with their own wallets; they also influence their peers. According to the 2010 Customer Experience Report, customer advocacy should be a key focus for businesses because:

* Customer service is still the number one reason consumers recommend an organization, more than products or price
* Word of mouth is the number one influence on consumers’ purchasing decisions (76 percent), followed by customer reviews and online feedback at 49 percent
* 79 percent of consumers that have had a negative experience with an organization told others about it, and 97 percent chose to share their experience via word of mouth
* 85 percent wanted to warn others about the pitfalls of doing business with that company and 66 percent wanted to discourage others from buying from that company

What Makes a Great Experience?

The 2010 report outlines why consumers stop doing business with a company:

* Rude staff (73 percent)
* Issues weren’t resolved quickly (55 percent)
* Unknowledgeable staff (51 percent)

Companies can improve the customer experience by providing friendly, knowledgeable support and resolving issues in a timely manner.

“Drugstore.com is heavily invested in delivering a positive, personalized customer experience and it has a tremendous impact on our business, steadily increasing our Net Promoter score and increasing sales.”
Lisa Larson, Director of Customer Care, Drugstore.com

“Customer experience is a top priority for Nikon. We work hard to quickly respond to customers’ needs no matter how they choose to reach out to the company. Our dedication to providing customers with a great experience is helping Nikon consistently achieve a 95 percent customer satisfaction score.