Customers Who Have Excellent Experiences With Brands Spend 140% More
Research done by Harvard Business Review shows there’s a direct link between customer experience and annual revenue. They found that customers who had the best experience were shown to spend 140% mRead full story
The finding that the revenue from improving good to excellent is higher than bad to better experience sounds counterintuitive, yet it makes sense. There is a steeper curve to level a negative experience. it is a strong insight for organizations where to channel their energy when it comes to prioritizing experience design.
“Every touch-point the customer has with the business is part of its experience.” We’ve seen why it’s important to build a strong brand at Virgin from the early days. Here’s why
The only thing surprising about this report is that they actaully had to do research to find this out. Of course customers who have good experiences spend more- a significant amount more. The question to find out is why so many companies go to the mat on customer acquisition and don’t put the same resources into the execution of the experience. But the piece does go into specifics that can help companies put a plan in place to move the needle. worth reading.
I enjoy reading stories about brands creating customer delight through surprise and innovation. However I am far more willing to spend my money on brands that speak out about this issues that matter to me most.
Loyal customers are also some of the most profitable customers.
Delight the customer and provide excellent customer experience is one the recent years phenomenon but not many companies have been able to pull it off well. Apart from technology integration, what it requires is an omnichannel experience where consumer is the central point
Its important to feel well taken care of. Enjoying the experience is paramount in retaining clients. Thank you HBR - its a good reminder to be thorough and think of the ripple effect new business has on fulfillment and customer service capabilities in strategizing a launch.
Proof that marketing doesn’t work/is a waste of time on the whole. Make a good product, let people try it to prove its good, and stop trying to screw people out of more of their money once you’ve sold them one thing. Best business plan you’ll ever need.
In other news, the sky is blue, grass is green, and waving at puppies give angels wings.
But seriously, it's amazing how older brands seem to forgo experience and working with customers (especially those with concerns) to find solutions for convenience and chore-like processes, sucking out any fun that can be had.
Not sure this is news.
Although all of this maybe blatantly obvious, having quantifiable numbers to use as a baseline for valuation and kpi for businesses is quite good. The challenge here is that statistically it may not be valid enough without a much broader and rigorous sample set, and there is still a need to establish performance metrics and best practices.
Similar to what KPMG Customer Experience Excellence surveys show. Deliver a better experience, and profits rise.
Not news but I suppose without an academic study complete with numbers some supposed management experts wouldn't believe it. Two really really old adages
1) Service sells
2) Penny wise pound foolish
Across almost any industry, the experience is more powerful than the product. Make a quality product, then focus on making the experience one that will never be forgotten.
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