The Age of the Customer

A recent study published by Oracle highlights the growing recognition amongst companies of the business imperative to deliver a remarkable customer experience.

The study also identifies a worrying gap between vision and execution and a perception gap between companies and their customers.

  • 93% of business leaders in the survey say that improving the customer experience is one of the top three priorities for the next two years
  • 97% state that it is critical to their business success
  • They also understand the cost of failure is large - estimated at 20% of their annual revenues
  • 91% of businesses want to be a customer experience leader…
  • But only 37% have a formal initiative in place. Interestingly, this result is almost identical to a survey by IBM about 2 years ago, which suggests businesses get the vision, but find it very difficult to implement and execute the plan
  • 49% of executives believe customers will switch brands due to a poor customer experience…
  • But 89% of customers say they have already switched brands because of a poor customer experience.
In the Age of the Customer, companies are recognising that their customers will vote with their feet if expectations are not met.

The study also reveals that there is a significant customer experience upside.

  • 44% of executives believe customers are willing to pay extra for a great customer experience
  • While 86% of customers say they are already paying a premium price and are willing to continue to do so
This is consistent with our own findings when we run CE assessment projects for clients. In many sectors, customers are happy to pay a little more than the market rate where they know they are getting a remarkable customer experience.

Given that on average, businesses estimate that they will increase spending by 18% on enhancing the CE, this feels like a sound investment

The report also indicates that a wide variety of metrics developed for other purposes are being deployed as customer experience metrics. Many businesses admit that they don't have a consolidated, accurate 360° customer view across all touch points; and freely acknowledge difficulty in regularly tracking performance measures and customer feedback.

This is where Investor in Customers has been helping clients since 2006.

In our experience, what gets measured gets done and our assessment model is based on 16 components of the customer experience with internal and external inputs across the same metrics to give a rounded view of the customer experience as perceived by customers and employees alike.

The comprehensive management information derived from the IIC analytical process is the starting point for identifying business improvement and change programmes leading to operational delivery and an improved customer experience for customers, which over time will lead to improved revenues and profitability.

To find out more about the IIC assessment, you can call us on 01395 513330, or email beremarkable@investorincustomers.com