Until recently, price and product were the main brand differentiators for consumers but research has shown what smart operators have known for a long time – CX has overtaken both as the key to not only attracting but to keeping business in 2021. Look no further than this data that shows consumers who enjoy a great customer experience are five times more likely to recommend a brand to other people. Those who have a positive CX are 54% more likely to make another purchase.
With that in mind, companies are investing in CX like never before. When CRM provider SuperOffice asked almost 2,000 business professionals to share their No. 1 priority for the next five years, almost half nominated customer experience.
They know that a positive customer experience is good for business and that’s because happy customers spend more money.
When PWC surveyed 15,000 people across 12 countries they found 73% of consumers believe CX is an important factor in their purchasing decisions. In terms of dollars and cents, 43% of respondents said they would pay more for greater convenience and 42% would pay more for friendly, welcoming customer service. The power of CX was further reinforced by PWC’s finding that 65% of US customers find a positive experience with a brand to be more influential than great advertising.
Such numbers are just the tip of the iceberg when it comes to highlighting how important CX is in the current business environment. Coupled with statistics that reinforce the benefits to be gained from outsourcing, we have compiled a wealth of data from trusted sources to show why there has never been a more important time to focus on customer experience – and how you can deliver it.
At its core, customer experience is a consumer’s perception of how a company treats them. Do CX well and there is the opportunity for customers to feel loyalty towards a brand, keep doing business with you and recommend your services to others. Do CX poorly and there is every chance they will never be sighted again – and tell their family, friends and colleagues why that is the case.
In the words of respected advisory group Gartner, CX is the new marketing battlefront. Gartner found that more than 80% of marketers expected to be competing mostly or completely on the basis of CX by 2020. Just 10 years earlier it was 36% lower.
The harsh reality for businesses is customers have never expected more when it comes to CX. Research has found that 68% of CX experts strongly believe that expectations from customers are rising, while 43% consider customers more impatient than ever before. The same survey found 47% of CX executives believe it is getting harder to please customers and more than half accept that consumers are more willing than ever to switch brands if unsatisfied.
The good news is organisations do not have to look far to find out what customers do want. This generation of consumers is not backwards in coming forwards and the modern-day customer is more than happy to share their thoughts on what works in the CX space. This was evident in Conversocial’s The State of Customer Experience 2020 Report, which, amid a myriad of insightful statistics, found:
This feedback highlights why CX has never been a greater focus for businesses and why an increasing number are looking to customer satisfaction measurement tools (aka CX metrics) to help collect feedback, make changes and improvements and ultimately deliver a more pleasant customer journey.
Consulting firm Lee Resource International conducted a study that unearthed a statistic that should send a shiver down the spine of any CX executive – for every customer complaint there are 26 other unhappy customers who remain silent. It is not good enough to simply wait for customer complaints. Rather, successful organisations actively seek feedback so they can avoid the following outcomes that happen after a poor customer experience:
Customer satisfaction metrics such as NPS, CSAT and CES are vital for ensuring businesses can mitigate such negative feedback that may prove harmful for their bottom line. Here is a brief overview of each:
Outsourcing CX, and other roles to a managed operations or BPO provider is an increasingly effective way for organisations to strengthen their CX. Deloitte’s 2020 Global Outsourcing Survey, which interviewed 40 executives both before and after the start of the COVID-19 pandemic, found cost reduction remains the primary objective to outsourcing.
Efficiency increases is another key driver for small businesses to outsource, as evidenced by Clutch’s 2019 Small Business BPO Survey, which found 24% of businesses surveyed said the practice allowed them to manage more projects yet still maintain clarity, quality and a fresh state of mind.
The combination of cost reductions and efficiency increases means businesses that outsource are able to dedicate more time and greater staff support to scaling and improving their services and offerings, which is great news for consumers when it comes to CX. Given that, it is little wonder Statistica has projected that revenue in the BPO sector will experience an expected annual growth rate of 6.7% by 2025, reaching an approximate value of US$381,237.4 million.
Not surprisingly, companies are investing more money than ever on CX technologies with such spending expected to reach $641 billion in 2022, compared to about $511 billion only three years earlier. This investment is supported by a CMSWire survey that showed professionals expect artificial intelligence (AI) and machine learning (ML) to significantly impact their organisation’s CX experience, with the two main areas relating to gaining actionable customer insights (21%) and enabling customer self-service (20%).
In much the same way that more than 90% of organisations are planning to deploy voice and other AI-powered technologies to provide an effortless CX by 2022, the BPO sector is embracing technological innovations to enhance products and services including:
Learn more about how to increase customer loyalty and streamline the customer journey in this tip sheet that explores Critical Success Factors to Fast-Track Growth.