A new study released by Oracle shows that brands could lose up to 20 percent of revenue due to poor customer experience.
The report, titled "Global Insights on Succeeding in the Customer Experience Era," is a global survey of 1,342 senior-level executives from 18 countries and provides insight on customer experience and ways to succeed.
"This report demonstrates that organizations around the globe and across many industries are beginning to understand the real business impact of not offering great customer experiences, but are facing execution challenges. We recommend that organizations map their customers' journeys to identify specific improvement areas that will help them cross the execution chasm. By empowering customers and employees, breaking down organizational silos, and implementing flexible processes and technology tools, organizations can deliver personalized, seamless customer service through the entire experience lifecycle," said David Vap, group vice president of Oracle.
Ninety-three percent of executives say that improving customer experience is one of their organization's top three priorities in the next two years, and 91 percent want to be considered a customer-experience leader. Despite these high hopes, only 37 percent are starting a formal customer-experience initiative and only 20 percent consider their customer-experience initiative to be advanced.
The study also shows that most business executives underestimate the impact of customer experience on behavior and that some businesses do not use social media effectively. In fact, 35 percent of businesses do not have social media for customer service; however, on average, businesses estimate that they will increase spending on customer service technology by 18 percent in the next two years in hopes of improving customer service.