This article about customer experience was originally posted by Marianne Wilson for Chain Store Age on June 20, 2018.
64% of consumers said they have avoided a brand because of a bad experience, according management firm Medallia. The findings reveal that customer experience is the top reason consumers cite for choosing a particular brand when making a purchase.
According to the “Customer Experience Tipping Point” survey, the demand for a positive experience is especially high in the United States. While loyalty is on the decline, expectations are on the rise, particularly among younger groups of consumers. For example, 30% of Gen Z and 22% of Millennials surveyed indicated that their expectations of customer experience in online retail are higher today than they were two years ago.
Also, U.S. respondents reported significantly higher expectations than European consumers for personalized experiences, real-time response, and ability to chat with a live agent.
“They [consumers] expect to have a seamless and positive experience and if those aren’t met, consumers know they have options,” said Rachel Lane, solution principal, Medallia. “For companies looking to create a competitive edge, having a strong brand recognition, or even stellar product isn’t enough. Experience is the tipping point. Without a strong plan to create and maintain a positive experience, businesses will lose out.”
The study also revealed that:
• A single bad experience can cost a brand a customer. Forty-six percent of U.S. mobile network customers said they are likely to switch brands after having one bad experience.
• Every touch-point matters. Customers expect their experience to be seamless and efficient on and offline. For instance, 56% of online retail shoppers and 49% of retail offline shoppers expect consistent levels of service across physical and digital channels.
• Customers don’t want to be responsible for fixing a company’s mistake. According to the study, 70% of consumers report that they expect an immediate response when they submit a complaint.
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