It’s a fact that bad customer experience can make consumers leave and never return. But, we can measure the value of good customer experiences as the study by PwC, called “Experience Is Everything” reveals.
They surveyed 15,000 consumers worldwide and found the price premium for quality CX is up to 16 percent for products and services. Also, 42 percent of consumers would pay more for a friendly, welcoming experience and 52 percent for a speedy and efficient customer experience.
Although price and quality are still the main purchase decision factor, 73 percent of consumers said a good experience is a determining factor influencing their brand loyalties.
On the other hand, research by the Institute of Practitioners in Advertising (IPA) came up with a four-step framework for customer experience. According to the Positive Brand Friction report, if brands manage their customer experience, it could boost commercial performance and growth.
The IPA defines positive brand friction as “purposefully slowing the experience down in a way that accentuates the brand and positively impacts the experience without making it harder for the customer.” The institute outlines four areas that alleviate tensions within customer experience.
First, intelligence and measurement can identify areas within customer experience that need improvement, predict benefits, and measure outcomes.
The next solution is collaboration, shifting from one department or team responsible for customer experience to an organization-wide approach.
The co-author of the report, Nick Milne says because of the pandemic, brands need to understand how to use all growth levers, at best, to aid their financial recovery. One of the levers that he mentioned is customer experience.