As the economy continues to boom, customers across many industries will increasingly benefit from companies competing for their business. That’s why, for brands in today’s economic climate, understanding your customers’ needs is critical to earning and retaining their business and loyalty.
Even though you may already understand and agree, I’m here to offer a deeper and more nuanced explanation of why and how we arrived at this need state. What follows are seven power statistics that will further explain why the customer — and the journey your company takes them on to earn and retain their business — is so critical.
Around 89 percent of companies are competing on the basis of “Customer Experience”
A decade ago, “customer experience” was considered important, but not nearly as important as it is today. In 2018, with customers who are more discerning than ever, customer experience has become a critical component in brands’ competitive strategies in the business world. In fact, 89 percent of companies are actively competing on this basis. Don’t expect the 11 percent to last very long.
Customer journey analysis is now more important to CRO than A/B testing
Analyzing the customer journey is one of the most powerful ways that you can improve conversion rates for your business. In fact, recent studies indicate that developing a customer journey analysis can have an even greater impact than A/B testing — which was, for a long time, widely regarded as the most effective method of conversion rate optimization (CRO).
Customer journey mapping increases marketing ROI by 54 percent
The best marketing departments and agencies always make sure to focus on the ROI they are able to produce. One area that has shown particular promise in driving ROI is customer journey mapping. In fact, effective customer journey mapping results in an average increase of marketing ROI of 54 percent.
Customer journey mapping increases up-sell revenue by 56 percent
Once a customer makes a purchase, there is still a lot of work to do. Ensuring that the customer has an excellent experience, and engages with the product and brand well after purchase, is critical to maximizing customer loyalty and the lifetime value of that customer.
By developing, understanding, and acting on a map of the customer journey, reports indicate that the potential for upsell opportunities increases by an average of 56 percent.
Customer experience will be the primary brand differentiator by 2020
Social media and the Internet have made it so that the transfer of information happens nearly instantaneously. That means your customers are talking to each other more than ever before. In order to differentiate yourself, it’s absolutely essential that you understand the type of experience your customers want and provide it to them. Standing apart from your competitors through the implementation of superior customer experiences is expected to be a primary brand differentiator by 2020.
About 85 percent of individuals who have an “excellent” customer experience are “likely” to repurchase from the same company
There should be absolutely no doubt about the importance of the customer experience. In case you need one statistic that highlights just how important it is, though, consider the fact that repurchase opportunities are dramatically more likely to occur (about 85 percent) if a particular customer has an “excellent” experience with your company.
Customer experience innovation now accounts for half of product investments
The stats I shared above are certainly no secret, which is why nearly half of product investment is now centered on the customer experience. If you want to remain competitive in your market down the line, make sure you understand the importance of the customer experience — and how customer journey mapping can help get you there.
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