With current economic uncertainty, as many as 65% of consumers are reducing their spending with companies that fail to meet their CX standards, according to a survey by Broadridge Financial Solutions. The annual survey entitled the CX and Communications Consumer Insights provides insight into how companies can improve their CX and communications strategy to deliver greater value and personalization, which has a huge impact on customer loyalty and the financial success of a business.
Research shows that 69% of consumers call for companies to enhance their customer experience - a significant increase from 2019, when only 35% felt this way. Moreover, 61% of consumers take the quality of a company's communications as an indicator of its level of innovation.
"As we face continued economic volatility, it has never been more important for companies to consider the critical role that communications play in how consumers perceive their overall experience with businesses. With consumers increasingly signaling that companies need to improve their CX, investments in communications technology and innovation are critical for our clients to improve customer loyalty, personalize experiences at scale, and advance digital engagement," said Matt Swain, Head of Communications Insights and Experience, Broadridge.
The Future of Communications
With continuous technological innovations across industries, consumers are becoming more discerning when identifying which companies are not keeping up with the latest CX trends. Effective communication is a crucial component of CX, and this study indicates that, despite consumers voicing their needs, companies fail to meet their expectations.
Failing to provide good customer experience can negatively impact consumer loyalty. In fact, 69% of consumers would consider switching to a competitor after just two or three negative interactions with a company. On the other hand, companies that prioritize delivering exceptional CX tend to do the following:
Streamline the process of navigating account details online (43%)
Communicate clearly (43%)
Enable customers to chose how to receive communications (25%)
Personalization is a crucial CX factor. More than half of consumers (54%) have ended their relationship with a company due to lack of personalization. Gen Z are more likely to feel this way (63%), compared to 45% of Boomers.
As many as 74% of consumers expect a personalized digital experience that provides a summary of their performance related to their goals, key activities, recommendations, and relevant links. This demand has increased by 13% since 2021. Additionally, if companies make digital experiences more engaging, 82% of consumers would prefer to go paperless, an 11 percentage point increase from 2022.
Consumers' expectations for digital experiences are rising. More consumers (65%) are now expecting companies to improve their digital experience, which is a 5% increase from 2022. Additionally, customization is becoming increasingly important, with 81% of consumers expressing their desire for companies to personalize experience based on what the company knows about them.
Building Trust with Digital Advancements
Privacy and security concerns are on the rise. For example, 42% of respondents have ceased doing business with companies following data breaches. In addition, a poor experience has led to a loss of trust in a company for over two-thirds of consumers (68%).
Consumers prioritize trust. As many as 31% of consumers believe that companies should be more transparent in their approach to data protection and privacy. Additionally, 62% agree that improvements in digital security measures such as Face ID and PIN codes sent via email or text can help them feel more comfortable engaging with companies digitally.
"Five years into this survey, we see trends that are proving to be absolute, including the need to create more engaging digital experiences. We've invested in next-gen technology and reimagined the communications experience to meet consumer expectations. By creating a modern, secure, digital-first communications platform — one that satisfies data insights, regulatory compliance and omni-channel preferences — companies can deliver a cutting-edge customer experience," said Doug DeSchutter, president bank broker-dealer and customer communications at Broadridge.