General CX

Key Customer Experience Statistics for 2020

As Human-Centered Design (a.k.a. HCD) practitioners, we spend a lot of time discussing how and why this approach makes sense as a business strategy for our clients. To make these discussions more productive for everyone, we also make sure to bring key customer experience statistics as concrete, supporting data.

Now, going into the new year, we’ve compiled key customer experience statistics for 2020. Perhaps, they will help you:

• Decide to finally give HCD a try.
• Persuade, cajole, or corral management into thinking about customer and employee experience.
• Present supporting stats to relevant stakeholders.

Without further ado…..

Ok, maybe there is a little more ado. Don’t forget to drop us a line and let us know if this is useful.

Here goes.

Mo’ Business, Mo’ Problems

Most anyone would agree emotionally positive, memorable customer experiences with brands are important…in theory.

In practice, companies leave significant opportunities on the table. Internal forces get in the way; there’s never enough time, money, or human resources. External forces likewise don’t make it easy; the market tanks or partnerships die.

Sh*t happens.

And yet…

• Customers switching companies due to poor service costs U.S. companies a total of $1.6 trillion.
• 77% of consumers say inefficient customer experiences detract from their quality of life.
• Customers tell about 9 people about a positive experience, but they tell about 16 people about a negative experience.

We can all agree these aren’t great, right?

Switching costs are lower, while competition and customer expectations are higher, especially given how easy it is to vent publicly about a brand on social media.

And yet (again), innovative business executives are bumping up against the old adage, “things are the way they are because that’s the way they’ve always been.” And, of course, bringing quality, multi-channel experiences to your customers is logistically no joke.

Why invest in Customer Experience:

We know you have every intention of serving your customers in the best way possible within the constraints you have, but, doing so in a systemic, organized, productive way can be daunting.

Becoming human-centric (a.k.a. understanding your customers and re-orienting the company around their needs) doesn’t have to be painful. Convincing your employees, managers, and whoever else is usually half the battle.

To wage your HCD campaign, here are some supporting, key customer experience statistics for 2020:

• 62% of companies plan to invest in meeting the changing needs of customers.
• Investing in the omni-channel experience has jumped from 20% to more than 80%. What’s more, companies with the strongest omni-channel customer engagement strategies enjoy a 10% Y-O-Y growth, a 10% increase in average order value and a 25% increase in close rates.
• 87% of people who had a great customer experience will make another purchase from the company, compared to 18% of customers who had a very poor experience.
• Retention and customer lifetime value (CLV) top the list of motivations for both B2B and B2C companies focusing on CX.

Investing in Human-Centered Design (HCD) to create impactful Customer Experiences (CX) sounds like a no brainer.

Where do we start:

Usually, any business would benefit from re-examining how each of the following contribute to their overall brand CX. We recommend working through them one step at a time:

• DATA

1. 1. • 90% of global executives who use data analytics report that they improved their ability to deliver a great customer experience.
      • 80% of customers say they are more likely to do business with a company if it offers personalized experiences. Usually, these are the direct result of having the right data.
      • 62% of marketing leaders said use of online customer data at their firms increased in the last two years, and 70% said they expect to use more online data in the next 2 years.

• TOOLS

1. 1. • One study found that 43% of B2B companies are using tools like customer journey maps to measure specific KPIs against each touchpoint. These efforts can reduce their cost of service by 15-20%.
      • Customer empathy tools at all levels of organization lead companies to increase their financial value more than twice compared to the least empathic company cultures, AND generated 50% more earnings (defined by market capitalization).
      • Companies that provide an emotional connection with customers outperform the sales growth of their competitors by 85%.
      • User interviews and surveys top the list of tools companies use to improve their CX, using 2-3 methods on average to collect customer data.

• TECHNOLOGY

1. 1. • Today, 67% of customers prefer self-service over speaking to a company representative. In fact, customers are willing to find the answers themselves with 91% of customers reporting that they would use an online knowledge base if it were available and tailored to their needs.
      • Millennials are growing up, and 79% of them are more willing to buy from brands that have a mobile customer service portal.
      • Personalization is important: 75% of consumers are more likely to make a purchase from a company that knows their name, understands their purchase history, and recommends products based on their preferences.

• COMPANY CULTURE

1. • Happy employees = happy customers. “Loyal, passionate employees bring a company as much benefit as loyal, passionate customers. They stay longer, work harder, work more creatively, and find ways to go the extra mile.”
   • A joint Columbia-Duke study found that, 90% of employees think culture was important at their firms; over 50% said corporate culture influences productivity, creativity, profitability, firm value and growth rates; but only 15% said their firm’s corporate culture was where it needed to be.
   • With a culture that attracts high-talent, companies could see 33% higher revenue.

But wait…

What if nothing is wrong?

Sure, growth has slowed and no significant product/service updates have occurred, but customers seem “happy” and employees are not “complaining.”

Consider this: only 1 in 26 unhappy customers actually complain. The rest just leave.

Additionally, in their future of CX report, PwC surveyed 15k consumers and found that 1 in 3 customers will leave a brand they love after just one bad experience, while 92% would completely abandon a company after two or three negative interactions.

Food for thought as you consider your own company’s human-centered practices.

The path forward

More researchers are finding that companies who earn $1 billion annually can expect to earn, on average, an additional $700 million within 3 years of investing in customer experience. And, by the end of 2020, customer experience will overtake price and product as the key brand differentiator.

With key customer experience statistics like these, it’s hard to ignore the Human-Centered Design approach to Customer Experience. As you figure out how to find the customer experience gaps in your business, use these studies to get others onboard. And, if you need help, as always, we’re here for you.

We love hearing from you. What helps you make decisions? What helps you convince others that a course of action makes sense?