Investing in your customer experience strategy has a significant financial impact on businesses. For every dollar invested in improving the customer experience, businesses generate three dollars in return.
This was one of the findings of a study released by Avanade, a digital innovator on the Microsoft platform, and Sitecore.
The study was based on a survey of 880 decision-makers across the US, UK, Canada, Germany, Australia and Singapore and was conducted by Vanson Bourne in February and March 2016. It focused on businesses' customer experience strategies, and the adoption, benefits, challenges thereof, as well as the importance of building a long-term relationship with customers.
The research also revealed that brands who invest in customer experience management expect to see an 11% increase in revenue. In addition, a whopping 96% of those surveyed have or are developing a customer experience strategy.
"Also, 92% of those with a strategy in place report that the customer experience strategy is one of their top three priorities," said Avanade.
Another finding showed that competition and customer feedback were the main reasons behind prioritising a customer experience strategy. Moreover, two-thirds of those surveyed said that competition made their organisation realise the need to prioritise customer experience, while 52% reported customer feedback as the driver.
According to the study, there are still several obstacles preventing businesses from delivering an effective customer experience, including outdated services and systems, a lack of internal skills, and an inability to provide a seamless experience across different channels.
Scott Anderson, chief marketing officer at Sitecore, said: "For brands to truly succeed, they need to move beyond standalone marketing tools and shift marketing to their customers in context across every brand touchpoint."
He added that businesses need to understand that customer experiences are now built around knowing what each individual is trying to achieve at that very moment in time and create the right brand experience around those insights. Nearly half the respondents have experienced increased customer loyalty over the past 12 months by prioritising a customer experience strategy."
"Today's digital customer has myriad options for the way they interact with businesses. The right customer experience strategy can help companies provide a seamless and consistently excellent experience across all those channels," added Stella Goulet, chief marketing officer at Avanade.
"In an increasingly competitive digital world, brands need to challenge traditional business models and consider what could be done differently to attract, win and retain their customers by meeting or exceeding expectations at every touch point," she concluded.
Our comments policy does not allow anonymous postings. Read the policy here