Electronics manufacturers, hotels, and airlines have the highest potential to achieve positive business outcomes through exceptional customer experiences, as revealed by a recent study conducted by Qualtrics. Conversely, banks and credit card companies bear significant costs due to poor customer service, which only shows the critical importance of delivering excellent customer experiences in the financial sector.
The latest study conducted by the XM Institute investigated the impact of customer experiences on industries, focusing on the potential gains and losses associated with positive and negative interactions. It analyzed how customer interactions influence their likelihood to make additional purchases, recommend a company, and trust it. The study emphasized that customer loyalty is developed through every interaction a person has with a brand, including customer service calls, interactions on sales floors, and interactions at check-in desks.
“Customers have more options than ever before, making the effect of a great experience critical for building a loyal customer base. This goodwill extends beyond a single customer, as the happiest customers are also much more likely to recommend a company to others,” said Bruce Temkin, head of XM Institute at Qualtrics.
The supermarket industry has demonstrated remarkable resilience, which could be attributed to factors such as convenience and competitive pricing. However, according to the study, negative customer interactions can have a significant impact on businesses. As many as 50% of consumers either reduced their spending or completely stopped purchasing from a company after a negative experience. This means that approximately 8% of a company's annual revenue is at risk due to poor customer experiences.
While the percentage of customers turning away due to negative experiences has decreased compared to 2021, customer retention has become even more crucial in an uncertain economic climate. Businesses need to prioritize providing positive customer experiences to maintain customer loyalty and safeguard their revenue.
Difficulties in reaching customer service drive customers away
When a customer shows dissatisfaction or mentions any issues with their interaction, it significantly reduces the likelihood of them giving the company more business in the United States. Customers expect prompt and satisfactory resolutions to their problems, but obtaining assistance from the customer service department presents a big challenge in the US market. Across various industries, the primary barrier preventing customers from engaging in repeat business is the struggle to reach customer service for support.
Frontline employees who directly interact with customers have a significant impact on fostering customer loyalty, particularly when it comes to issue resolution. The research indicates that over 60% of individuals who experienced no difficulty in obtaining assistance from customer service expressed their willingness to continue using the same bank. In contrast, only 25% of those who encountered challenges in accessing help expressed their intention to remain loyal to the bank.
“There are so many moving pieces to the overall customer experience, it’s incredibly valuable for companies to understand which journeys drive the most business impact. Not all customer journeys can be perfectly smooth, but focusing on the most important friction points goes a long way to ensuring repeat customers,” added Temkin.
Speaking of customer preferences, Qualtrics has also unveiled Customer Journey Optimizer. This solution combines journey analytics and orchestration, to assist businesses in pinpointing crucial touchpoints and areas of dissatisfaction along the customer journey.
