Toronto, Canada – Despite 92% of respondents agreeing that customer experience (CX) is vital to customers, 52% of the respondents said that CX on their end has less impact or no impact at all to their purchasing decision or long-term loyalty, according to the latest report by total experience management company Alida.
In their global report, they have found that 95% of respondents say they’re willing to spend more for a better customer service experience, placing greater emphasis on their personal experience versus convenience. Respondents note that bad personal experience (79%) and poor brand reputation (65%) were also cited as the biggest influences in making a purchase.
Unfortunately, 75% believe brands are simply not listening to their feedback, and one in ten believe businesses will never use customer feedback to inform business decisions.
According to the report, the biggest ‘offenders’ are banks, in-person retail, and credit card companies.
Nicole Kealey, chief strategy officer at Alida, notes that the past year has seen a fundamental shift in how consumers interact with brands, forcing companies to change the way they engage with and stay close to their customers.
“Being reactive is no longer a viable business strategy. Our study shows that business leaders are missing out on a tremendous opportunity to harness the insight and opinions directly from their customer base to create a better customer experience, drive sales and increase customer loyalty,” Kealey stated.
The report also noted that 4 out of 5 consumers state that they are highly motivated to do business elsewhere after a bad customer experience. The majority of respondents stated that they are also likely to leave a bad review, something that can have a negative long-term impact on a business. According to the report, t negative social reviews influence the purchase decision of six in ten respondents.
Kealey notes that as all industries look to best navigate a post-pandemic world, companies must understand that one of their most important assets to success is a happy customer.
“A customer who has enjoyed your products, services and experiences will come back again and recommend you to their friends and family. But competition will become fierce and optimizing every step of the brand experience will be critical. To do so, brands must integrate CX into their overarching business strategy and employ the tools they need to truly understand their customers and take action,” she concluded.