The State of Customer Experience
Customers Are Hungry For More
4-5 years ago, you may have been able to get away with an adequate experience. But customer expectations are rising, and fast!
And when 80% of brands believe they are delivering a superior experience, but only 8% of customers believe they are receiving a great customer experience, it’s time to acknowledge that this is where your focus should be.
So before you spend one more dime on ads, influencers, or beautiful video campaigns, you must elevate your experience and create exceptional, memorable moments for your customers! Here’s why...
An increased desire for happiness and social media are shifting human behavior and consumer spending.
Positive experiences influences purchasing decisions in almost every industry. They are particularly influential in restaurants (74%) and hotels (74%).
Sixty-six percent of hotel guests who say they would go out of their way to stay at a desired hotel brand claim they would do so because of a positive experience with the hotel, making it the top reason before price (51%), location (48%), familiarity with the brand (45%), and reward points (30%), among others.
The payoffs for valued, great experiences are tangible...
Up to a 16% price premium on products and services, plus increased loyalty.
42% of all consumers would pay more for a friendly, welcoming experience. And, among U.S. customers, 65% find a positive experience with a brand to be more influential than great advertising.
What is the cost for ignoring opportunities to elevate your experience? One in three consumers (32%) say they will walk away from a brand they love after just one bad experience.
On the other hand, emotionally engaged customers are:
- At least three times more likely to recommend your product or service
- Three times more likely to re-purchase
- Less likely to shop around (44% said they rarely or never shop around)
- Much less price sensitive (33% said they would need a discount of over 20% before they would defect)
The level of engagement defines the customer value and it has been observed that fully connected customers are 52% more valuable, comparing to those who are simply satisfied with a brand.
Moreover, according to a survey by Forrester Research, companies that aim for emotional connection beat their competitors by 26% in gross margin and 85% in sales growth, with customers feeling more engaged and appreciated.
Unfortunately, when looking at hotels specifically, nearly half of hotel guest (44%) are dissatisfied with how a hotel delighted them.
But for those that do delight, word of mouth is the most common response to a positive experience. When asked what they did when they experienced a positive incident, customers report telling their friends and family about it in just under half (47%) of cases, rising to 60% of cases for hotel customers. With this word of mouth, naturally, comes further opportunities for new customer acquisition.
In the hotel industry, among customers who felt valued, 90% will advocate for the brand, 67% plan to increase their spending with the brand, and 87% plan to stay with the brand, per Forrester’s Customer Experience (CX) Index.
So if you're ready to start elevating your experience and reaping the rewards of creating emotional ties with your customers, click below to set up a time to chat. Less than 30 minutes is all we need to determine whether or not we can support you in taking advantage of the experience economy!