A recent study by PWC, argues that customer experience is the only viable goal – and has an arresting headline:
Experience is everything. Get it right
Good customer experience leaves people feeling heard and appreciated; it minimizes friction, maximizes efficiency and maintains a human element.
There is a real economic imperative to getting the experience just right. Consider the chart below, look at the grey bar for the US and now look at the business exposure when customers have several bad experiences. Nearly 60% of all customers defect and stop interacting with brand…..a whopping 60%!!
So how bad are expectations already?
The answer is….it varies. If you are an airline – then you are in real trouble with satisfaction levels 33% below expectation, but even the humble bank has its work cut out with a gap of over 20%.
So if everything is so bad out there, then why bother improving the experience? Why is customer experience everything? The answer is:
Because its worth it
As we have described before, What PWC means is that there is extra margin to be captured if your experience matches or exceeds these expectations – just look at the ROI that could be generated if operation execution hit it out of the park:
The full PWC study can be found here. It is a good read and sets out a roadmap of why the customer experience is the only business goal that matters in the long term and provides their six main pathways to focus on. Getting the experience wrong is a disaster for the brand image and the profitability whereas getting it right leads to higher satisfaction, loyalty and the option of additional margin.
The shocker here is knowing that nearly 60% of all customers will defect the brand if multiple poor interactions are experienced – there are no businesses where this exposure could be sustained.