More evidence linking customer experience to revenues growth
More evidence this weeks, as if any were needed that better customer experience directly drives revenue growth. This time it’s a study by Sitecore and Avanade of 880 decision makers in six countries, including Australia.
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The researchers found that for every dollar invested in improving the customer experience, businesses generated three dollars in return. In addition, they said, companies can expect to to see an 11 percent increase in revenue in the next 12 months.
The study called Customer experience and your bottom line examined customer experience strategy, its adoption, benefits, challenges as well as the importance of building a long-term relationship with customers.
Among the key findings;
- 78 per cent of respondents credit key technology upgrades for their success.
- 65 per cent say payoff comes from giving customers personalized info at the right moment.
- Companies that invest in CX are seeing lifetime customer value jump 22 per cent.
The authors reveal that competition and customer feedback were the main reasons behind prioritising a customer experience strategy.
“A full two-thirds of respondents said that competition made their organisation realise the need to prioritise customer experience, while 52 percent of global respondents and 60 percent of Australian respondents reported customer feedback as the driver.” according to the study.
” Interestingly, 46 percent of Australian respondents cited increased operational costs as a key driver for prioritising customer experience compared to 14 percent in Canada, 24 per cent in the UK, 13 percent in Germany, 31 percent in the US, and 42 percent in Singapore.”
The report also identified key impediements including outdated services, a lack of internal skills (compared to 41 percent globally) , and an inability to provide a seamless experience across different channels, according to the research.
“For Australian brands to truly succeed, they need to move beyond standalone marketing tools and shift marketing to their customers in context across every brand touchpoint no matter whether they’re targeting millennials or retirees,” said Scott Anderson, Chief Marketing Officer, Sitecore. “Companies need to understand that customer experiences are now built around knowing what each individual is trying to achieve at that very moment in time and create the right brand experience around those insights.
He said, “By prioritising a customer experience strategy, almost half of those Australians surveyed have experienced increased customer loyalty over the past 12 months while more than one in three have increased their revenue, 23 percent have increased their profitability and 34 percent have increased both the retention and acquisition of customers.”