1、1 2021 Qualtrics LLCROI of ROI of customer customer experience experience in 2021in 2021How breakthrough customer How breakthrough customer experiences are driving experiences are driving loyalty and growthloyalty and growth2Table of contentsSummaryHow customer experience impacts trustHow customer e

2、xperience impacts advocacyHow customer experience impacts likelihood to purchase moreMaximizing CX ROI391418233Its official:experience drives loyalty and growthSUMMARY4The better the experience,the stronger the loyaltyIts clear from our research that a good,or very good,customer experience can incre

3、ase loyalty,improve sales and revenue,and differentiate a brand from its competitors.Brands that overlook the importance of customer experience also underestimate the damage bad customer experience can cause.Our research found that just one bad experience can have a negative impact on customer relat

4、ionships and reduce future sales by up to 14.7%.CONSUMERS ARE:Summarymore likely to trust an organization after a positive customer experiencemore likely to recommend an organization after a positive customer experiencemore likely to purchase more from an organization after a positive customer exper

5、ience4.3x5.1x3.5x5Overall,we found a strong connection between good customer experience and loyalty.Based on customer satisfaction ratings(1-5 stars),its clear that the better the customer experience,the more likely customers are to trust,advocate and purchase more.Read on to dig deeper into these t

6、hree loyalty metrics,how they vary by industry and how your brand can leverage great customer experiences to drive sales and growth.A global viewIn partnership with the Qualtrics XM Institute,we surveyed 17,509 consumers across 18 countries,exploring customer experiences across 17 industries.We inve

7、stigated how satisfaction with an experience impacted three loyalty metrics trust,advocacy and likelihood to purchase more.We analyzed the effect of poor,okay,good and very good CX to determine the upside of a positive experience on businesses,and the dangers posed by providing poor experiences.CUST

8、OMER EXPERIENCE6It takes just one bad experience to impact revenueJust as its clear that good customer experiences have enormous upside for businesses,there are also threats to be wary of that come with a bad experience.Businesses that stand still will sufferOur research shows that just one bad expe

9、rience is enough to have a negative impact on revenue.Every industry is at riskThe repercussions of bad experiences can be seen across every industry we surveyed.On average,across all 18 countries and 17 industries,18%of consumers reported having a very poor experience recently with an organization

10、in one of the industries we asked about.On average,organizations across all 17 industries risk losing 9.5%of their revenue due to bad experiences.9.5%7Poor customer experiences impact the bottom lineBusinesses risk losing on average 9.5%of their revenue,and up to 14.7%of their revenue in some cases,

11、by providing a poor customer experience.No matter the service or product provided,all industries stand to lose when consumers arent satisfied with their experiences.Highly competitive,easy-to-switch industries are most at riskWhether it be internet service and mobile phone providers,fast food or onl

12、ine retailers,its never been easier to switch.Consumers that have a negative experience within these industries are much more likely to decrease buying,or stop altogether.After all,they can just go elsewhere.8How bad experiences impact sales(Percentage of consumers reporting a very poor experience)x

13、 (Percentage of consumers that decreased and stopped spending after a bad experience)*Although Government Agencies and Public Utilities may not have revenue at risk due to bad experiences,there are likely latent loyalty issues that could manifest in other areas.INDUSTRY SNAPSHOTInternet Service Prov

14、iderGovernment Agency*Mobile Phone ProviderAirlineOnline RetailerCredit Card ProviderProperty InsuranceParcel DeliveryCollege/UniversityHealth InsuranceFast FoodBankHospital/Medical ClinicPublic Utility*Department StoreStreaming ServiceSupermarketOverall14.7%14.2%14.0%13.7%13.0%10.5%9.2%11.5%11.0%He

15、alth InsuranceFast FoodBankHospital/Medical ClinicPublic Utility*Department StoreStreaming ServiceSupermarketOverall14.7%14.2%14.0%13.7%13.0%8.2%7.2%4.7%9.5%6.5%4.8%9.0%8.7%8.6%How customer experience impacts trustSECTION 110Invest in building trust the payoff is worth itThe more satisfied your cons

16、umers are,the more trust they place in you.We found that 89%of consumers were likely to trust an organization after a very good experience,meaning its vital to provide excellent CX to win customers over.THE IMPACT OF CX ON LIKELYHOOD TO TRUSTHow customer experience impacts trustTheres a 69-point gap

17、 between the likelihood to trust after a very good experience (5 star)versus a poor experience (1-2 star).”21%POOR CXOKAY CXGOOD CXVERY GOOD CX50%81%89%11TRUST:INDUSTRY VIEWAirline customers are the most forgiving Airlines have the highest trust ratings of consumers who didnt have a good experience(

18、30%).Given that 27%of consumers we surveyed had a very poor recent experience with airlines the second highest industry result airlines seem able to weather poor experiences better than most.Satisfying experiences in healthcare lead to the highest levels of trust Hospitals and medical clinics have t

19、he highest trust rating when customers have good experiences with them(87%)or a very good experience(92%).Only 16%of consumers reported a poor recent experience in this sector,the 6th lowest of 17 industries.12Mobile phone providers are at highest risk of losing customer trust Only 15%of consumers a

20、re likely to trust mobile providers when they have a bad experience.With 23%of consumers having a recent negative experience the fourth highest industry rate of very poor experiences its clear that mobile phone providers have their work cut out for them to build trust.Education providers may have to

21、 work the hardest to win trust Colleges and universities are the least likely of all the industries to create trust after a highly satisfying experience,meaning educational providers might need to consistently exceed expectations.Of the consumers we surveyed,20%reported a negative recent experience,

22、showing that theres some work to do to gain and maintain loyalty.13Poor CXOkay CXGood CXVery Good CXAirline30%50%81%88%Bank22%52%81%91%College/University22%56%82%84%Credit Card Provider18%46%79%90%Department Store29%52%83%91%Fast Food24%48%79%90%Government Agency19%48%83%89%Health Insurance18%48%83%

23、89%Hospital/Medical Clinic29%54%87%92%Internet Service Provider16%50%78%89%Mobile Phone Provider15%47%78%88%Online Retailer19%43%78%88%Parcel Delivery15%47%80%91%Property Insurance21%48%80%88%Public Utility21%54%81%90%Streaming Service21%48%78%88%Supermarket30%54%83%91%Average21%50%81%89%Percentage

24、of customers somewhat likely or very likely to trust based on satisfaction ratingLowest Trust Rate Highest Trust RateHow customer experience impacts advocacySECTION 215How customer experience impacts advocacyAdvocacy will be built or lost on the experienceOf all the loyalty factors measured,advocacy

25、 is the most strongly correlated to customer satisfaction(.55).The more satisfied consumers are with their experience,the more likely they are to recommend your services or products to others.We found that 88%of consumers were likely to recommend an organization after a very good experience.IMPACT O

26、F CX ON LIKELIHOOD TO RECOMMEND17%44%77%88%POOR CXOKAY CXGOOD CXVERY GOOD CXThere is a 71-point gap between the likelihood to recommend after a very good experience (5 star)versus a poor experience (1-2 star).”16ADVOCACY:INDUSTRY VIEWAirline customers will still recommend,even after an okay experien

27、ce Of all the industries,consumers are most likely to recommend airlines if they have an okay or good experience with them(52%and 81%respectively).As with trust,airline customers are much more forgiving than in other industries after an okay experience.Great customer experiences in department stores

28、 lead to the highest recommendation rates Consumers who have very good experiences in department stores are the most likely to recommend of all the industries we examined.Of consumers we surveyed,only 12%reported a negative recent experience with department stores(the third lowest of 17 industries),

29、indicating that this industry is consistently meeting customer expectations.Parcel delivery services are the most at risk after a poor experience When consumers have a poor customer experience,they are the least likely to recommend parcel delivery services.In contrast,consumers who have a negative e

30、xperience with fast food restaurants are still twice as likely(26%)to recommend it.17Poor CXOkay CXGood CXVery Good CXAirline25%52%81%88%Bank14%41%74%87%College/University20%48%74%84%Credit Card Provider15%38%74%87%Department Store24%51%80%91%Fast Food26%47%80%90%Government Agency14%41%75%86%Health

31、Insurance17%41%78%89%Hospital/Medical Clinic24%42%75%88%Internet Service Provider15%44%76%87%Mobile Phone Provider14%43%76%88%Online Retailer17%45%78%89%Parcel Delivery13%39%75%88%Property Insurance19%49%78%86%Public Utility17%43%73%85%Streaming Service19%50%79%90%Supermarket23%47%79%89%Average17%44

32、%77%88%Percentage of customers somewhat likely or very likely to recommend based on satisfaction ratingLowest Recommend Rate Highest Recommend Rate18How customer experience impacts likelihood to purchase moreSECTION 319How customer experience impacts likelihood to purchase moreMaximize the top line

33、by doubling down on CXWhen customers have had a good experience,theyre more likely to purchase more from that business in the future.In fact,we found that 85%of consumers were likely to purchase more after a very good experience.When compared to trust and advocacy,CX seemingly has a lesser impact on

34、 likelihood to purchase more.Businesses might think that this means theyll be forgiven for a poor experience and customers will return,but they would be wise to rethink that.Our research shows that businesses risk losing on average 9.5%of their total sales,as more than half of customers say theyre l

35、ikely to decrease or stop spending with a brand after a bad experience.Brands cannot afford to get complacent.Consumers are 3.5x as likely to purchase more after a 5-star satisfactory experience than a 1-or 2-star experience.3.5X20IMPACT OF CX ON LIKELIHOOD TO PURCHASE MORE24%50%79%85%POOR CXOKAY CX

36、GOOD CXVERY GOOD CXThere is a 61-point gap between the likelihood to purchase more after a very good experience(5 star)versus a poor experience (1-2 star).”21PURCHASE MORE:INDUSTRY VIEWSupermarkets are most likely to see repeat purchases after an okay experience Customers are most likely to purchase

37、 more from businesses in this industry even after poor(34%),okay(61%)or good experiences(83%).Additionally,supermarkets stand to risk losing the least number of sales(4.7%)after a bad experience,with the lowest percentage of consumers reporting a poor recent experience(10%).Government agencies risk

38、latent loyalty issues with mediocre experiences Government agencies have the lowest percentage of consumers who would return for another purchase after okay or good experiences(39%and 73%respectively).Although government agencies may not have revenue at risk due to poor experiences in practice,there

39、 are likely latent loyalty issues that could manifest in other areas.Credit card providers have the most to lose from poor CX Consumers are least likely to return to credit card providers(17%)after a poor experience,with 20%of consumers reporting a recent experience that was negative.We found that 1

40、1.5%of credit card providers sales are at risk after a bad experience with customers seemingly more likely to cancel their card or switch provider.22Poor CXOkay CXGood CXVery Good CXAirline29%54%79%88%Bank21%46%77%82%College/University30%44%74%83%Credit Card Provider17%45%75%84%Department Store32%55

41、%83%88%Fast Food33%56%83%89%Government Agency19%39%73%82%Health Insurance25%43%74%83%Hospital/Medical Clinic26%43%73%80%Internet Service Provider20%50%78%87%Mobile Phone Provider18%48%76%84%Online Retailer25%52%83%87%Parcel Delivery24%48%79%86%Property Insurance19%43%76%83%Public Utility33%53%75%82%

42、Streaming Service19%50%77%87%Supermarket34%61%83%88%Average24%50%79%85%Percentage of customers somewhat likely or very likely to purchase more based on satisfaction ratingLowest Purchase More Rate Highest Purchase More Rate23Maximizing CX ROISECTION 424Where should you focus for maximum return on yo

43、ur customer experience?+Invest in the experience to grow your customer base Customer experience good and bad,has the greatest impact on advocacy.As previously mentioned,the strong correlation between global satisfaction rates and recommendation rates shows that advocacy is the most likely to be infl

44、uenced by satisfaction when compared to trust and purchasing more.A poor experience will also see you slipping behind the competition.Consumers are least likely to advocate for a brand after a poor experience,compared to trust(21%)and purchasing more(24%).+Improve satisfaction to grow loyalty across

45、 the board Across all the countries and industries we asked about,there was a strong correlation between the three loyalty metrics of trust,advocacy and purchasing more.By focusing on customer satisfaction,you can improve all three metrics,improving your chances of expanding your customer base,getti

46、ng repeat business and improving sales.+Be proactive Standing still will cause you to fall behind Proactively developing and maturing a CX program that improves experiences,not only increases trust,advocacy and number of purchases,it also gives you that all important competitive advantage.Maximizing

47、 CX ROI25How to improve the customer experienceA lack of investment in customer experience management can have real consequences for your sales and growth.By putting a focus on your CX program,you can increase customer satisfaction,drive loyalty and increase your return on investment.Qualtrics XM In

48、stitute explains how you can begin to make customer experience your competitive advantage:+Connect CX metrics with business results Although our research shows that CX correlates to customer loyalty,you will need to justify the investment within your organization.Start by identifying which loyalty b

49、ehaviors youre trying to improve and then examine how those customer actions improve when your CX metrics improve.To secure buy-in,involve financial and revenue management leaders,use existing metrics and conservative estimates,and communicate results with a simple storyline.Whats next?Learn more ab

50、out how to prove the ROI of your CX programREAD MORE26+Focus on improvements,not measurements When companies obsess over a metric rather than using the score to drive improvements,their progress improving the experience can stall.To avoid that and keep the focus on CX improvements and resulting busi

51、ness outcomes leaders should always ask two questions whenever their team presents CX data:“What have we learned?”and“What improvements are we making?”+Start by making(and sharing)wins Organizations looking to gain momentum in their CX program should focus on demonstrating CX value through quick win

52、s in order to secure senior executive buy-in and resources.Set up simple listening posts,look for evidence of broken customer journeys,focus on the problems that are quickest and easiest to fix,and share stories about how the changes helped customers and improved business metrics.READY TO GET STARTED?Get started with Qualtrics.Request a demo to learn more.BOOK DEMO