Customers Will Pay Organization More For A Great Customer Experience

According to the fifth annual Customer Experience Report, a Harris Interactive study sponsored by RightNow Technologies, customer experience is playing a significant role in determining where consumers choose to shop and how much they are willing to spend. Results show that exceptional customer experience creates loyal customers and has the power to impact a company’s top and bottom lines.

Nearly all consumers (85 percent) said they would be willing to pay more over the standard price of a good or service to ensure a superior customer experience. Of those consumers that said they would pay more for an excellent customer experience:

-- 55 percent would pay 10 percent or more

-- 27 percent would pay 15 percent or more

-- 10 percent would pay 25 percent or more

This year’s research also shows that a great customer service experience significantly impacts purchasing decisions:

-- Nearly all consumers (82 percent) have stopped doing business with an organization as a result of negative experience and most (75 percent) do not return

-- 55 percent of consumers became customers of a company based on its reputation for great customer service, and 40 percent of consumers have switched to a competitive brand simply because of its reputation for exceptional service

Consumers not only voice their customer experience preferences with their own wallets; they also influence their peers. According to the 2010 Customer Experience Report, customer advocacy should be a key focus for businesses because:

-- Customer service is still the number one reason consumers recommend an organization, more than products or price

-- Word of mouth is the number one influence on consumers’ purchasing decisions (76 percent), followed by customer reviews and online feedback at 49 percent

-- 79 percent of consumers that have had a negative experience with an organization told others about it, and 97 percent chose to share their experience via word of mouth

-- 85 percent wanted to warn others about the pitfalls of doing business with that company and 66 percent wanted to discourage others from buying from that company

The 2010 report outlines why consumers stop doing business with a company:

-- Rude staff (73 percent)

-- Issues weren’t resolved quickly (55 percent)

-- Unknowledgeable staff (51 percent)

More information on CRM can be found at www.CRMindustry.com.