However, in the past two years, as the economic downturn has forced
significant changes in customer behavior, many have questioned the
importance of the overarching customer experience. These naysayers claim
that in tough times price is the only thing that matters. Customers, they
say, are more likely to accept a bad experience as long as they are getting
a good deal. This perspective, however, is not confirmed by the data.
When Money is Tight, Customers Expect an Even Greater Customer
Experience...
The most recent Harris Interactive Customer Experience Impact Report
surveyed consumers on how they engage with companies both online and via
phone, what they find frustrating, and how negative and positive customer
experiences affect them.
They discovered these facts that are startling to most business owners
today...
- 87% of the surveyed consumers stopped doing business with an
organization or company because of a negative customer experience.
That's up from 68% reported just two years ago.
- Even during tough economic times, the significance of customer
experiences does not dwindle. More than half (58%) of consumers polled
said they will pay more for a better customer experience during a down
economy.
- Consumers stated that the most important thing companies could do to
encourage them to spend more is to improve the overall customer
experience
So, it's clear that even when finances are tight, people still value good
service.
Why This Study's Results Are Not Surprising To Me...
When money is easy to come by customers are likely to be more forgiving.
Consider this restaurant dining example...
When the economy was booming many couples found themselves dining out
twice per week or more. With eight to ten dining-out occasions per month a
single bad experience is easily forgotten. However, when belts tighten,
monthly dining-out occasions may settle back to just two or three. With
fewer opportunities to "splurge" on an evening out couples and families now
demand that each experience justifies the expenditure of limited funds. Thus
a bad experience like poor service, long wait times and cold food makes a
bigger impression and stays with us longer.
Real Proof That Bad Customer Experience News Travels Far...
A recently published Forrester Research report, "How Customer Experience
Drives Word of Mouth" cites:
- Consumers tend to discuss bad experiences with more people than they
discuss good ones
- Gen Xers, as a group, tend to tell the most people about a bad
experience
- Gen Yers are the chattiest in general. They are more likely to tell
someone about a good experience. They are also the most likely to share
a bad experience.
So, don't you think that you should find out right now exactly what your
customers are saying about your organization's performance over the past
eighteen months? Have their experiences diminished in the wake of corporate
austerity? As we begin to see the recession bottom out, now is the time to
explore this issue; to find new ways to improve the customer experience; to
ensure that your customers have only good things to say!
Strategy Execution Consultant Scott Glatstein, President of
Imperatives LLC turns market opportunities into record breaking profits even
in a recession. Now, with his new book, "Strategy Activation: How to Turn
Your Vision into Marketplace Success," Scott unveils his groundbreaking plan
for improved customer experiences and higher strategic profits. Get your
FREE Sneak Preview at:
http://www.strategyactivation.com
