There’s one thing that I have known ever since I began my entrepreneurial journey.
It’s that brands preach more about customer experience than practice it in reality.
But for how long?
Well, if you don’t focus on it now, you won’t have long to worry about it, if you know what I mean.
If an entrepreneur’s words do not convince you on how vital customer experience is for your brand positioning, maybe these stats relevant for 2023 will be.
Customer Experience Statistics for 2023
I know, you all are well into 2023 to build strategies and begin their executions. But, even if you are not, these amazing stats are going to cement your strategies better and get you going.
Why Customer Experience Matters?
Of course, it does. But, let the stats speak on my behalf.
- 77% of brands believe that CX is a key competitive differentiating factor. IDC
- 74% of customers are somewhat likely to buy from a brand based on experiences alone. Arm Treasure Data
- CX drives over two-thirds of customer loyalty, which in effect represents more than brand and price combined. Gartner, via CMSWire
- Good experience impacts the brand loyalty of 73% of customers. PwC
- For 86% brands, good customer service turns one-time clients into long-term brand champions. Khoros
- 88% of companies now prioritize CX in their contact centers. Deloitte
Key takeaway: That being said, the customer has always been at the center of each business and industry. Even more so now as customer expectations rise every second as we speak.
Impact of CX on Business Revenue & Growth
If you think that CX just keeps the customer happy, well, think again.
- 61% of customers are willing to pay at least 5% more if they know they will get good experience. Emplifi
- Customer-centric brands are 60% more profitable than those companies which don’t focus on customers. Superoffice
- Brands with superior CX bring in 5.7 times more revenue than those who don’t. Retail Customer Experience
- 83% of brands who believe in the impact of good CX also experience growing revenue. HubSpot
- An NPS Promoter score has a customer lifetime value that’s 600%-1,400% higher than a Detractor. Bain & Company
- 59% of companies with a CEO who is involved in customer experience report higher revenue growth, compared to just 40% of companies without a customer-focused CEO reporting growth. Perspectives
- More than two-thirds of brands now compete primarily on the basis of customer experience, which was only 36% in 2010. Gartner
- Companies that provide an emotional connection with customers outperform the sales growth of their competitors by 85%. Gallup
Key takeaway: CX has not just remained a generic strategy anymore. Rather, it has transformed into a vital parameter to make you stand apart from the competition.
Need of Personalized Experiences
Personalized experiences have absolutely changed how we see brands today.
- 83% of customers are willing to share personal information to create a more personalized experience. Accenture
- 85% of brands believe they offer personalized experiences. Sadly, only 60% of customers agree with it. Twilio
- 88% of online shoppers are more likely to continue shopping on a retailer website offering a personalized experience, including 96% of Gen Z and 97% of millennials. Elastic
- 60% of customers are willing to become repeat buyers provided they have personalized purchasing experience. Twilio
- B2B businesses that customize their e-commerce experiences outsell their competition by 30%. Gartner
Key takeaway: A personalized CX strategy can be perfectly paired with a personalized marketing strategy for remarkable growth.
CX has raised the bar of mobile experiences.
Considering that a majority of the world runs their world on mobile phones, this has to be thought of.
- 57% of customers won’t recommend a business with a poorly delivered website experience on mobile. Sweor
- 84% of brands who claim to be customer-centric are now focusing on mobile experience. SuperOffice
- Most common complaints while accessing customer support from mobile were: difficulty to navigate, unhelpful search results, slow load time and more. Software Advice
- A shocking 32% of all Gen Z transactions happen online. Criteo
- 60% of Gen Z shoppers would not return to a mobile site/app they had trouble accessing, or if they load slowly and are difficult to navigate. Khoros
Key takeaways: Upgrading your website to a more mobile-friendly version won’t hurt, eh? Besides, the Gen Z is becoming increasingly impatient, and will not tolerate a lag in the era of 5G.
Customer service is a crucial factor for good customer experience.
While brands are always suggested to pick support channels, they and their audience are comfortable with, it only makes sense when you make those channels accessible in a jiffy.
- Faster response times drive the experience of 75% of customers. Knowledgeable staff accounts for 52%. Get Talkative
- 27% of Americans report that ineffective service is their number one customer service frustration. Statista
- Average response time over customer support email, however, remains a huge 12 hours. SuperOffice
- “Good CX with brand previously” and “speed of availability” remain to be the top two criteria for customers considering a purchase. Emplifi
- Customers are 2.4 times more likely to stick with a brand when their problems are solved quickly. Forrester
- Providing a high-quality customer experience lowers the service cost by up to 33%. Deloitte
- 73% of customers say they stay loyal to brands because of friendly customer service agents. HubSpot
Key takeaway: If these stats don’t convince you, I am sure a quick read of this will fill the gap.
Your company culture has to align to deliver a great customer experience
We know how team morale and their understanding of your business goals can make a difference in their ability to go above and beyond.
- 95% of leading organizations cite CX job roles as important to achieving business growth, which by the way is the highest of any job roles. EConsultancy
- Companies with engaged employees outperform the competition by 147%. Gallup
- The customer service industry has the highest employee turnover rate of all businesses. Call center statistics have placed it as high as 45%! QATC
Key takeaways: Get your team together and work towards a common goal, the betterment of your customers. Business growth will automatically follow.
Customer Experience & Word of Mouth
If you had a good experience with a brand, wouldn’t you share it with your friends and family? Well, that’s how it works. You deliver good, you receive great.
- 72% of customers share a positive experience with 6 people or more. If they are not happy, 13% of them will share with 15 or even more. Esteban Kolsky
- Almost 90% of American shoppers talk about their customer service experience with others. Microsoft
Customer Experience with Retention & Satisfaction
An amazing customer experience results in higher customer satisfaction, and consequently in higher retention rates.
- 42% of brands invest in customer experience to improve cross-selling and upselling, 33% to improve customer retention, and 32% to improve customer satisfaction. HSO
- A mere 2% increase in customer retention is the same to the profits as cutting the costs by 10%. SuperOffice
- Companies with a greater focus on customer satisfaction have 1.5x higher employee satisfaction, 1.6x higher brand awareness, and 1.9x higher order value. SmartKarrot
- 80% of companies use customer satisfaction scores to analyze customer experience and improve it. Harward Business Review
Tip: If these terms confuse you (because they can), here’s a quick list of common CX terms.
Tech in Customer Experience
Tell me one sector where tech hasn’t seeped in yet. I will wait.
Until then, check out how CX has been impacted with the latest technologies.
- In 2022 itself, 70% of all customer interactions were automated through AI and machine learning. Gartner
- Companies that use tools like customer journey maps reduce their cost of service by 15-20%. McKinsey
- 71% of companies say that the cloud has influenced customer experience. IBM
- 94% of shoppers are of the opinion that customer service has to become more technologically advanced. SmartKarrot
- 61% of businesses are boosting their support spending, especially in omnichannel. SmartKarrot
- 30% of businesses that provide digital experiences perceive an increase in consumer lifetime value. CGS
- In the last ten years, the number of customers using live chat, email assistance, and phones has climbed by over 50%. SuperOffice
- By 2025, Artificial Intelligence (AI) is expected to drive 95% of CX. SERVION
- 72% of companies believe they can use analytics and BI to improve customer experience. Keeping
Impact of bad customer experience
If good CX can do wonders, imagine what bad customer experience can do?
- 1 in 3 customers will leave a brand they love after just one negative experience. While, 92% would completely abandon the brand after two or three negative interactions. PwC
- It costs US companies a total of $1.6 trillion for customers switching due to bad experience. Accenture
- In 2021, the number of complaints from customers about cancellation hammered up 250%. MoveBuddha
- The top reason for customers switching brands is because they feel unappreciated. Forbes
- Only one in five consumers will forgive a bad experience at a company whose customer service they rate as “very poor.” (Nearly 80% will forgive a bad experience if they rate the service team as “very good.”). Qualtrics XM Institute
- 78% of customers have backed out of a purchase due to a poor customer experience. Glance
- 28% of consumers say the most frustrating issue is information that is simple but hard to find. Drift
- A complex checkout process would prompt 83% of female and 77% of male shoppers to abandon a website. SmartKarrot
DIY or self-service is another way to empower your customers.
- 77% of customers say that they view brands more positively if they provide self-service options for customers seeking support. Vanilla Forums
- Customers prefer knowledge bases over all other self-service channels. Forrester
- 69% of consumers first try to resolve their issue independently, but less than one-third of companies offer self-service options such as a knowledge base. Zendesk
CX & Customer Expectations, Preferences
Customer experience is driven by customer expectations and preferences. Or is it?
- 66% of consumers want brands to understand and address their needs. SalesForce
- 75% of customers desire a consistent experience, regardless of how they engage a company (through social media, in person, by phone, etc.). Freshdesk (Omnichannel FTW?!)
- 80% of B2B buyers expect a purchase experience similar to that of B2C customers. Active Campaign
- More than 70% of consumers believe that companies should collaborate on their behalf so they don’t have to repeat information to different representatives. Zendesk
- 64% of customer service teams use customer portals, compared to 84% of customers who use customer portals. SalesForce
- Customers wait an average of 2 minutes and 40 seconds for a response from the chatbot or live chat professional after starting a chat. SuperOffice
- More than 76% of all consumers prefer the traditional medium of phone calls to reach customer support representatives. CFI Group
- Millennials prefer live chat for customer service over every other communication channel. Comm100
- 80% of customers feel more emotionally attached to the brand whose customer service addresses their concern. SmartKarrot
- According to 47.5% of online shoppers from the US, the biggest challenge with chatbots and live chat is they offer a lot of unhelpful responses. SmartKarrot
- 63% of consumers expect businesses to know their unique needs and expectations, while 76% of B2B buyers expect the same thing. SalesForce
CX & Social Media
Because social media is at the forefront of most of the communication happening these days, delivering a memorable experience there is an aspect to consider.
- Customers engaging with brands on social media platforms spend 20 to 40% more. McKinsey
- 80% of Twitter shoppers consider brand conversations ‘trustworthy’. afaqs!
- 50% of customers say they don’t share their bad or good service experiences through social media. CFI Group
- Globally, 54% of people had a more favorable view of brands that responded to customer service questions or complaints on social media in 2020. Ledgeview Partners
- 59% of consumers message a brand to share a great experience, followed by 37% for customer service issues. Sprout Social Index
How has CX changed business operations?
- Companies investing in omni-channel experience has jumped from 20% to 80% by 2022. PwC
- 52% of marketers adapt their strategies and modify their tactics based on customer interactions and feedback. SalesForce
- 97% of customer experience managers say CXM is a business strategy that helps create loyal customer relationships. SmartKarrot
- 76% of businesses report increasing their investments in offering multiple channels for customer service. Zendesk
- 68% of loyal customers will join a loyalty program if offered, so it’s worth considering for your business. Yotpo
The Future of CX
Now, if you have to invest in something, you need to make sure it has a future, right?
Well, I assure you, CX is not just a part of the future. But, CX IS the future.
- 80% of the future revenue is going to be generated by just 20% of the company’s existing consumers. SmartKarrot
- Up to 20% of businesses will give up trying to differentiate based on customer experience. Pricing wars will take over CX. SmartKarrot
Customer experience has always fascinated me, and the more I read and delve into it, I know I haven’t even touched the tip of the iceberg.
But, I definitely hope these stats help you dive into the iceberg of your CX strategy this year.
And if you haven’t built one yet, you know where to seek help.
Oh, by the way, we have got some amazing statistics listed for startups, marketing and sales industries. Check them out.