In today’s business landscape, delivering exceptional customer experiences isn’t just an ideal companies strive for – it’s essential for organizations that want to remain competitive and relevant in an increasingly fierce and crowded marketplace.
With the rise of new innovations like automation, artificial intelligence (AI), customer relationship management (CRM) and customer data platforms (CDPs), businesses are developing more and more ways to both personalize the experiences for individual customers on a massive scale and gain visibility across multiple touchpoints and stages of the customer journey.
However, this innovation has heightened the expectations of the average consumer. Today’s customer demands nothing less than personalized, dynamic and seamless experiences across multiple channels. They’re also less loyal than ever before, and with attention spans dropping and the entrance of Generation Z to the marketplace changing what consumers look for from brands, marketers have their work cut out keeping pace with the latest demands and expectations.
The onus on optimizing, enhancing and transforming customer experience (CX) and the service businesses provide doesn’t purely sit with Marketing teams, either – in fact, an IFP survey of over 200 IT leaders found that over half (54%) of digital transformation projects involved initiatives specifically centered around CX.
So what does the average consumer actually want from your brand? What are businesses prepared to spend to improve their CX offerings? How much more are customers prepared to pay for a ‘premium’ experience? And just how big a part does personalization play in the ability to win over customers?
To create a holistic picture of the state of customer experience, we’ve collated 133 statistics from various sources (including our own first-party research) on the latest findings and insights. Dive into our findings on customer service, experience preferences, behavior, personalization and investment plans below:
Contents
- Customer experience spend, revenue and strategy
- Customer service and engagement
- Customer behavior and preferences
Customer experience spend, revenue and strategy
From CDPs and CXPs to CRM and chatbots, the list of marketing tools available to businesses and marketers looking to optimize their CX continues to grow. In the arms race that is customer acquisition and retention, organizations are placing significant emphasis on improving CX in their budgets.
Businesses are spending big on customer experience
1. In 2021, the worldwide market for managing customer experience was worth $9.5 billion. Experts predict that it’ll grow to $16.9 billion by 2026, with a compound annual growth rate (CAGR) of 12.3%. (Markets and Markets)
2. In an IFP survey of over 200 marketing leaders, over a quarter (28%) said they’re planning to spend from $250,000 to over $2.5 million on improving CX across all their digital channels. (IFP)
3. Companies that rate their CX as ‘very good' are over twice as likely to be planning to invest between $250,000 and $1m on improving their experience offerings than those that rated their offering as just ‘good’. (IFP)
4. According to a recent report, businesses in the APAC region are planning to increase their investment in CX by an average of 33%. (Zendesk)
5. In 2021, 60% of brands planned to increase their budgets. (Braze)
6. On the other hand, 61% of ecommerce and retail brands were planning to up their marketing budget in 2021. (Braze)
7. Almost half of well-established companies and around 40% of new companies consider customer engagement as a top priority for investment. (Braze)
8. 83% of brands that surpassed their revenue goals in 2021 are planning to increase their spending on customer engagement efforts, compared to only 23% of those who are falling short. (Braze)
9. Almost half of all organizations (44.5%) consider CX to be a major factor in setting themselves apart from competitors. Furthermore, 45% of the surveyed organizations believe that the integration of AI solutions will significantly transform their CX strategy within the next five years. (Statista)
10. 52% of media and entertainment brands’ budget is directed towards acquisition, and 30% spend more than half their budget on retention. (Braze)
There’s significant revenue in customer experience (CX)
11. There has been a notable improvement in sales revenues, ranging from 2 to 7%, and a profitability increase of 1 to 2% due to enhancing the CX. (McKinsey)
12. Companies that prioritize enhancing their customers' experience have the potential to boost their revenue by 4-8% more than their competitors in the market. (Hawke Media)
13. Companies achieving higher-than-average business success metrics with the help of CX technologies are spending an annual amount of approximately $2,700 per employee. On the other hand, companies displaying below-average success metrics are spending only about $1,400 per employee on CX technologies. (Metrigy)
14. Businesses that prioritize providing excellent CX generate 5.7 times more revenue compared to their competitors who fail to maintain the same level of customer satisfaction. (Retail Customer Experience)
15. Businesses that prioritize their customers are proven to be 60% more profitable compared to those that neglect their customers. (Deloitte)
16. Customer service has a significant impact on business growth, according to 64% of business leaders. It improves customer retention for 60% of them and enhances cross-selling opportunities for 47%. (Zendesk)
17. Champions – brands that are the most successful in their business operations – are 3.2 times more inclined to make conversational interactions a top priority in their CX efforts. (Zendesk)
18. They also agree that turning to a more conversational experience with customers is a critical goal for their teams. (Zendesk)
19. Importantly, champions have 2.8x higher chances than starters to have advanced major CX projects. (Zendesk)
20. In terms of business performance, 73% of leaders report a direct correlation between customer service and success. (Zendesk)
21. Companies that prioritize enhancing their customers' experience have the potential to boost their revenue by 4-8% more than their competitors in the market. (Hawke Media)
Improving the customer experience isn’t without its challenges
22. Poor customer service costs a staggering $1.6 trillion annually. (Commbox)
23. According to various estimates, the annual cost of inadequate customer service falls anywhere between $75 billion to $1.6 trillion. (Midlands Technical College)
24. According to an IFP survey of over 200 marketing leaders, the 3 biggest challenges are understanding customers (66%), mapping and analyzing the customer journey (61%) and managing and accessing data (60%). (IFP)
25. 40% of media and entertainment brands are facing the challenge of distinguishing themselves in a crowded, competitive market. (Braze)
26. Businesses who consider their CX as ‘very good’ are more likely to struggle with a lack of commitment from other departments than those that just consider it ‘good’. These brands are instead more focused on a lack of integration between tools (52%), metrics not being shared across the business (52%) and a lack of consolidated data and analytics (49%). (IFP)
27. Only 26% of marketing leaders report that their organizations have a shared definition of success for customer engagement campaigns. (Braze)
28. A mere 20% of CMOs stated that they had a complete 360-degree view of the customer's data online and automatically connected. (Treasure Data)
29. It's important to note that 53% of CMOs have reported that the major obstacle in achieving their CX vision is the lack of proficiency and understanding of technology and data management. (Treasure Data)
30. Furthermore, 43% pointed out that they face challenges in accomplishing their CX objectives due to the absence of appropriate technology vendor solutions. (Treasure Data)
The most successful companies are innovating and utilizing data
31. 69% believe that Customer Data Platforms (CDPs) are crucial in achieving their organization's CX goals. (Treasure Data)
32. Around 70% of respondents agreed that a customer data platform could significantly improve CX. (Treasure Data)
33. 78.5% of businesses believe that providing exceptional customer experiences can give a considerable edge over competitors. (Treasure Data)
34. What's more, 44% of retail brands are aiming to invest more in customer satisfaction measurement and customer engagement to enhance their business. (Braze)
35. 49% financial services brands are planning to invest more in measuring customer satisfaction. (Braze)
36. CMOs who exceeded customer expectations in the last year emphasized on integrating physical and digital experiences (47%) and the use of personalization (38%). (Treasure Data)
37. 59% of brands are constantly experimenting with various advanced analytics. (Braze)
38. A whopping 90% of business leaders believe that incorporating CX innovation is essential to safeguard their business from rivals. (Zendesk)
39. In the champions category, business leaders are 12.3x more inclined to review CX metrics and important performance indicators on a daily basis. (Zendesk)
40. 32.5% of CMOs claimed to use the best-of-breed provider while 11% preferred a single vendor-integrated marketing suite. (Treasure Data)
41. 70.5% of Chief Marketing Officers believe that adhering to data compliance regulations, maintaining customer privacy, and upholding ethical standards are crucial factors in achieving successful CX and earning trust. (Treasure Data)
Customer service and engagement
The way your brand interacts with consumers has always played a huge role in successfully winning over and retaining customers. This is no different in today’s digital landscape – in fact, the results of investing more in the service you provide could have a big impact on your bottom line.
Reducing waiting times and improving agent performance are high priorities
42. IFP’s survey of over 200 marketing leaders found that a quarter (25%) of respondents are prepared to spend from $250,000 to over $2.5m on staff training in order to reduce waiting times and improve their overall service. (IFP)
43. About 46% of customers anticipate a response from companies within a maximum of four hours, while 12% of them expect a reply within 15 minutes or even less. Furthermore, a whopping 90% of customers deem an instant response as critical or highly significant when seeking customer service support. Out of these, approximately 60% believe that an instant response means within ten minutes or less. (SuperOffice)
44. An IFP survey found that one in four (23%) of marketing leaders could leave customers waiting between 5-10 minutes to talk with an agent. (IFP)
45. Just 4% of customers express their complaints to companies. This implies that organizations might not be aware of the negative experiences of a considerable number of dissatisfied customers who are left feeling neglected and unattended. As a result, businesses may miss out on the chance to assist them and may find it challenging to regain their trust in the future (Zippia)
46. The retail industry has a remarkable satisfaction rate of 86%. (LiveChat)
47. A large majority (72%) of business leaders consider customer service as a critical priority for their organization. (Zendesk)
48. It's important to note that 72% of customers also expect assistance when buying or returning an item. (Zendesk)
49. In terms of integration, 42% of customers expect customer service to be integrated with other business channels. (Zendesk)
50. 82% of marketers believe they’re doing an excellent/good job at customer engagement. (Braze)
51. Nearly one-fifth (19%) of businesses utilize a single workspace to access all of their conversations agents a unified workspace to access all conversations. (Zendesk)
52. Interestingly, 78% of all champions' customers problems are solved in just one interaction. (Zendesk)
53. What's more, champions’ average total resolution time is 39% faster than Starters. (Zendesk)
54. Champions have a 6x more chance of providing exceptional customer visibility to their agents and have 9.4x higher chances of having excellent cross-channel visibility. (Zendesk)
55. Participants are expecting a 25% increase in remote service agents. (Zendesk)
56. When it comes to efficiency, champions demonstrated a 16% increase in efficiency for both phone and chat interactions, showcasing their exceptional skills in these areas. (Zendesk)
57. A significant majority of customers (75%) are willing to pay extra to purchase from companies that offer them a positive CX. This highlights the importance of providing top-notch customer service to retain and attract customers. (Zendesk)
58. 86% of consumers are ready to pay a premium price for a superior customer experience. Additionally, a study conducted by PWC reveals that customers are even more inclined to pay extra for high-priced products and services when they have a satisfying experience with the brand. (SuperOffice)
59. 61% of marketing leaders plan to prioritize customer requests to reduce waiting times, according to an IFP survey. Meanwhile, 60% are looking at building a customer service knowledge base and over half are either looking at building or optimizing AI chatbots (55%) or obtaining all the relevant information they can about customers (50%). (IFP)
60. Just under a quarter (23%) of marketing leaders are ‘very confident’ in the ability of their customer service agents to meet or exceed customer expectations, according to IFP research. (IFP)
61. An overwhelming majority of consumers (69%) are demanding better customer experience from retailers - a significant increase from 35% in 2019. In addition, 61% of consumers believe that a retailer's innovativeness can be assessed by their communication skills (Retail Customer Experience)
62. Over 60% of business leaders claim they have raised their customer service standards. (Zendesk)
63. 68% of business leaders feel that most companies need to improve their customer service agent training. (Zendesk)
64. Surprisingly, only a small percentage (22%) of business leaders claim that their customer service is of 'extremely' high quality. (Zendesk)
65. Additionally, only 20% of business leaders are confident in their ability to resolve customer engagements quickly. (Zendesk)
66. 76% of customers expect to engage with someone immediately when contacting a company. (Zendesk)
67. When it comes to customer service, a large majority of people, specifically 74%, expect agents to have access to all relevant information. (Zendesk)
68. Over half of customers (54%) believe that businesses they interact with consider customer service as an afterthought. This number increases to 64% for customers under the age of 40. (Zendesk)
69. 63% of customer engagement teams often collaborate with business intelligence teams to obtain necessary data. (Braze)
70. 82% of consumers believe that having a customer support representative who can resolve their issues without following a script can increase their loyalty towards a brand. (Sitecore)
71. An overwhelming 93% of customers will spend more on companies that offer their preferred mode of customer service, excluding chat. (Zendesk)
72. Mid-sized and enterprise-sized companies in the APAC (asia-pacific) region who are considered champions are 16x more likely to surpass their customer satisfaction targets. (Zendesk)
73. 93% of American brands believe they're doing an excellent or good job at customer engagement. (Braze)
74. Wellbeing and health brands are less concerned with engagement metrics translating into business outcomes, with only 71% expressing concern. (Braze)
75. 51% of wellbeing brands use customer satisfaction as a measure of success. (Braze)
76. 91% of financial services brands have rated their customer engagement efforts as either "good" or "excellent". (Braze)
Businesses are investing in live chat and self-service options
77. A significant majority of consumers (81%) have expressed their desire for additional self-service options. However, the current tools available are not up to the mark as only a mere 15% of consumers are highly satisfied with them. Surprisingly, businesses have a different perception as they believe that around 53% of consumers are very satisfied with self-service. (CXMToday)
78. More than 60% of consumers in the United States would rather use an automated self-service option for basic customer service tasks like accessing a website or mobile application. (Raffle)
79. Live chat has become the preferred choice of customers when it comes to contacting businesses. Despite being in existence since the 1970s, its popularity is increasing at a rapid pace. It’s projected that the usage of live chat will grow by up to 87% in the next 12-18 months, with some industries experiencing a growth rate of up to 150%. (SuperOffice)
80. Over 40% of customers have expressed their preference for real-time customer service through live chatcompared to other options like phone support or email. (SuperOffice)
81. According to statistics, customers who interact with a live chat agent are almost three times more likely to make a purchase. Additionally, a considerable 38% of customers have claimed to make a purchase after having a satisfying conversation with a live chat agent. (Campaign Monitor)
82. The majority of customers, 82%, expressed their satisfaction with live chat as compared to email users, who were satisfied by only 61%, and phone users, who had a concerning satisfaction rate of 44%. (SuperOffice)
Customer behavior, preferences and retention
With more channels to communicate with businesses and more platforms to do research, share their feedback and make recommendations, the behavior of customers (and their preferences for how they interact with brands) holds more weight than ever before.
Customers have high expectations – and will share negative experiences with others
83. 74% of CMOs agree that customer expectations are high, with most desiring personalized and unified messaging across various communications channels. (Treasure Data)
84. 92% of customers appreciate companies that ensure they don't have to repeat themselves. (Zendesk)
85. 89% prefer finding answers online rather than contacting customer service. (Zendesk)
86. A significant majority of customers, precisely 62%, admit to sharing their negative experiences with others. This highlights the importance of maintaining a positive reputation and providing excellent customer service to avoid the spread of negative word-of-mouth. (Salesforce)
87. 72% of customers tend to spread the word about their positive experiences with others. This highlights the importance of delivering exceptional customer service and ensuring that clients are satisfied with their interactions with your business. (Helpscout)
88. 34% of buyers have returned to the same brand they vowed never to shop at again. (Sitecore)
89. Almost 50% of CMOs claimed the CX they deliver falls below or significantly below their customers' expectations, with only 31.5% surpassing expectations. (Treasure Data)
Customers want brands to reflect their values
90. A significant number of consumers (84%) feel that brands should demonstrate fairness, and over 60% are willing to pay extra if staff are well paid. (Sitecore)
91. Brands should make an effort to ensure customers feel represented in marketing and communication, according to 81% of consumers. (Sitecore)
92. 75% think it's essential to see products or services from minority-owned businesses being offered. (Sitecore)
93. While 59% consumers prefer neutral brands or those that don't comment on social issues, 2 out of 3 want transparency regarding political parties and social issues financially supported by brands. (Sitecore)
94. Customers understand that businesses must pass along additional costs, and transparency is crucial when doing so, according to 86% and 91% of them, respectively. (Sitecore)
95. Nearly 68% of individuals agree that it is crucial for brands to showcase their support towards social causes they believe in, rather than just their identity. (Sitecore)
96. 85% of consumers prefer brands that reflect real-life experiences over perfect-life experiences. (Sitecore)
97. 59% of respondents prefer shopping at brands that align with their values. (Sitecore)
98. Transparency and reliability are more important than pricing for one-third of consumers. (Sitecore)
Customers want personalized experiences
99. The majority (71%) of consumers have high hopes of receiving personalized interactions from companies, and a whopping 76% feel disheartened when their expectations are not met. The study also revealed that personalization is a critical driving factor in enhancing performance and achieving better customer outcomes. (McKinsey)
100. 80% of customers tend to buy products or services from a brand that offers customized experiences. (Epsilon)
101. The personalization software market has reached a staggering $943 million in 2022. Furthermore, it is predicted that the market will experience a 23% growth from its value of $746 million in 2021. This means that by 2027, the market is expected to reach an impressive $2.7 billion. (360iResearch)
102. Companies that implement advanced personalization techniques have seen a significant return on investment, with 70% of them experiencing over 200% ROI. This highlights the importance of personalization in marketing strategies and the potential benefits it can bring to businesses. (KoMarketing)
103. The overwhelming majority (91%) of consumers tend to favor brands that acknowledge, retain, and offer products or services that are tailored to their specific needs and preferences. What's more, an increasing number of customers (about 69%) desire a customized and uniform customer experience across various channels, including physical and digital ones. (Accenture)
104. A significant 70% of consumers have expressed their interest in having brands engage with them on a more personal level. (Sitecore)
105. When it comes to customer service, personalized attention goes a long way in winning over customers. A staggering 90% of customers are more likely to spend more with companies that offer personalized service. (Zendesk)
106. Only 10% of brands personalize their communications built around real-time data. (Braze)
Omnichannel is the way forward
107. 73% of customers want to be able to continue their conversations across multiple channels without any disruptions. (Zendesk)
108. 60% of customers are willing to complete transactions across various channels. (Zendesk)
109. 28% of businesses allow agents to seamlessly switch between channelsto solve customer issues. (Zendesk)
110. Furthermore, 73% of companies expect that chat and social media platforms will become increasingly popular among customers in the future, an increase from the current rate of 54%. (Zendesk)
111. Champions – businesses that achieve greater success relative to their peers – are 4.4 times more inclined to offer agents with a smooth and uninterrupted channel-switching experience. (Zendesk)
112. Champions are also 2.9 times more likely to operate a service team that's turning a profit. (Zendesk)
113. More than one-third of CMOs are currently concentrating on coordinating omnichannel marketing strategies to enhance CX. (Treasure Data)
114. 80% of brands execute campaigns across many customer engagement channels. (Braze)
115. 35% of brands utilize channel optimization to instantly spot the ideal message channel for every single customer. (Braze)
116. 74% of online shoppers and 59% of in-store shoppers tend to conduct research before making a purchase. (Bazaarvoice)
117. Only 19% of online shoppers make purchases through social media. (Bazaarvoice)
118. 66% of customers prefer a combination of both online and in-store shopping experiences. (Bazaarvoice)
119. 59% of customers prefer to use channels that are familiar to them. (Zendesk)
Retaining customers is hard, but not impossible
While generations of the past were more concerned with the products and services themselves when making a purchase, Generation Z and Millennials care far more about both the experience they receive and the personality of brands they’re buying from.
120. 76% of customers would switch to a competitor due to several negative customer service experiences. (Zendesk)
121. If a consumer encounters a negative experience with a business, it could lead to a loss in potential customers. In fact, half of consumers would turn to a competitor after one negative experience, while 80% would choose a competitor if they faced multiple negative experiences. (Zendesk)
122. 73% of American consumers consider CX as a crucial factor in their purchase decision. Interestingly, even if they have a strong affinity towards a product or company, 59% of them would still abandon it after facing multiple negative experiences. In fact, 17% of consumers would not hesitate to switch to another option after experiencing just one unpleasant encounter. (GetFeedback)
123. Almost 9 out of 10 consumers tend to make repeat purchases if they have had a positive customer service experience. (Helpscout)
124. When a business successfully resolves the issues of dissatisfied customers, 70% of them are likely to give that business another chance. This highlights the importance of addressing customer complaints promptly and efficiently to maintain customer loyalty. (Helpscout)
125. Customers who have had positive experiences are more likely to spend 140% more than those who have reported negative experiences. (clerk.io)
126. A survey of 15,000 consumers for their CX report and discovered that a third of customers would switch brands they were loyal to after just one negative experience, whereas 92% would sever all ties with a company after two or three unfavorable interactions. (SuperOffice)
127. Customers who receive messages through a single channel are 7.2 times more likely to make a purchase, tend to make 9.8 times more purchases, and are 3x more loyal. (Braze)
128. Messaging customers on two different channels leads to a 73% higher likelihood of them making a purchase, a 4.2x increase in their lifetime value, a 76% longer user lifetime, and a 58% boost in their 30-day retention. (Braze)
129. Champions are 4.7 times more likely to mention an increase in their customer base in the last six months compared to Starters. (Zendesk)
130. 74% of customers are willing to forgive a company for its mistake if they receive excellent customer service. (Zendesk)
131. On the customer side, a positive experience increases the likelihood of another purchase for 81% of customers. (Zendesk)
132. 29% of customers exhibit loyalty towards a brand irrespective of price hikes or any offerings. (Sitecore)
133. 25% of them require some benefits from the brand, such as free shipping or a loyalty program. (Sitecore)
Customer experience is changing – don’t get left behind
If CX isn’t currently a significant priority in your business and marketing strategy, the statistics and research above provide the justification you need. With expectations rapidly rising and more and more brands entering the landscape and competing for the same customer base, delivering exceptional experiences is the best way to stand out, win a loyal following, provide sustainable growth and drive your business forward.
To learn more about the latest CX trends, the biggest challenges according to marketing leaders and the investment plans of organizations across multiple company sizes and industries, read our full research report, ‘The State of Customer Experience’.
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