Brand owners are spending hundreds of thousands of pounds evaluating their customer experience strategies, but, even when they discover issues, most are making a rod for their own backs by ignoring them, potentially missing out on returning customers – and higher profits.
So says a new global report from enterprise software specialist IFS which polled more than 1,700 executives and more than 12,000 consumers, finding that two-thirds (66%) of brands invest at least $250,000 (£180,000) a year on evaluating their CX performance.
Once the results were analysed more than four-fifths (82%) of companies were not able to recall a single positive example of a frictionless customer experience but of those who spotted “inflection points”, almost a third (29%) did nothing about it.
Nearly a fifth (18%) said they were simply too busy to tackle the issues, while others (15%) claimed they proactively sought to pre-empt problems.
The consequences for businesses which decide to take no action, are “significant”, IFS claims.
A quarter of consumers said a single bad experience would make them never want to engage with a brand again, but just over half (52%) appear more forgiving, insisting they would give the company a second or even third chance. Even so, nearly two-thirds (58%) would still share their negative perceptions with their friends and family.
The report suggests that by adjusting the key components of CX strategies – namely processes, technology and human coordination – companies can deliver what IFS calls “a quality moment of service”, where everything operates smoothly to create a positive result for customers.
IFS chief customer officer Michael Ouissi said: “When it comes to delivering a positive customer experience, businesses have a limited opportunity to get it right. And if they neglect a single inflection point, they are gambling with their outcomes, including profits and margins.
“There are many points where you can either delight or disappoint a customer and consumers are willing to voice their opinions either way.
“Companies must rethink their operations, to harnesses a combination of packaged functions and technologies to deliver outcomes and adapt to the pace of business.”
Earlier this summer, it was revealed that almost half (48%) of all marketing chiefs say the CX their organisation delivers falls below or significantly below their customers’ expectations, despite nearly 8 in 10 (79%) recognising that delivering a premium customer experience is a powerful competitive advantage.
The findings, from a study of 200 chief marketing officers in the UK, France and Germany, commissioned by Treasure Data, in partnership with MarTech Alliance, also showed that over half (53%) of CMOs cited insufficient skills in data management and/or knowledge of the right technology as the biggest barriers to realising their CX vision.
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