Consumers around the world are so fed up with the customer experience that they would pay more to improve it.
Eighty-one percent of those surveyed, in fact, would be willing to chip in some more cash for a superior customer experience, new Oracle research shows, with nearly half (44 percent) willing to pay a premium of more than 5 percent.
The research shows that that customer experience is now a key driver for revenue growth in Europe, and an effective channel for brand differentiation in a globalized economy where products and services are increasingly commoditized.
The report, "Why Customer Satisfaction is No Longer Good Enough," goes on to say that respondents cited improvement of the overall customer experience (40 percent), providing quick access to information and making it easier for customers to ask questions (35 percent), as key drivers for spending more with a brand.
The pan-European research, carried out in June by independent research company Loudhouse, surveyed 1,400 online shoppers who had made a complaint or enquiry to a customer-service department in the last 12 months.
Besides driving new revenue growth, a good customer experience is also essential to protecting existing revenue channels, the survey revealed. Seventy percent of respondents said they have stopped doing business with a brand following a poor customer experience. Importantly, 92 percent of those have gone straight to a competing brand and made a purchase. With fewer than one quarter of consumers (22 percent) nearly always satisfied with their customer experience, there is a clear opportunity for brands to improve customer service to win market share from competitors.
"Our report has made one thing absolutely clear: Getting customer experience right can help increase revenue and win customers away from competing organizations," said Danny Rippon, CRM business solutions director, Oracle. "By creating a consistent and connected experience across all points of customer contact – including the increasingly important social channel – businesses can clearly differentiate themselves and build priceless brand capital. As an absolute fundamental, businesses must ensure that their customer experience systems can support fulfillment and service to the extent demanded by consumers, while at all times making it as simple as possible for them to interact with the brand. This is the key both to winning new customers and retaining them for the long haul."