Customers have experiences with brands, and those experiences inspire positive or negative emotions which guide the customer the next time he or she is deciding between one brand and the next. Customers who have positive associations with a brand are more loyal because they know they can rely on that brand for a positive experience. That's more important than anything else, including price. Mark Hillary of the CX Files recently interviewed me about an omnichannel experience and putting the customer first. By having a digital first mindset, contact centers can seamlessly talk to customers across platforms, so the customer isn't repeating themselves and thus having a better experience. Let’s look more closely at the link between customer experience and customer retention.The statistics behind the emotions There is a growing body of evidence that suggests customer experience is directly responsible for whether or not a customer stays with a brand. Here are some of the most revealing statistics on customer experience and customer retention.Customers who have positive associations with a brand are more loyal because they know they can rely on that brand for a positive experience.
- 86% of consumers will immediately quit doing business with a company because of a bad customer experience
- 73% of dissatisfied customers cite incompetent, rude, and "rushed" service as the #1 reason for leaving a brand
- Companies with a social customer service program experience a 7.5% YoY increase in customer retention, while those without one only see a change of 2.9%
- 78% of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience
- More than two-thirds of consumers who encountered a customer service or customer experience issue on a brand’s website left the site or visited a competitor.
- A customer gets in touch with a brand's contact center
- The contact center uses integrated technology to serve the customer more personally
- Personal service inspires positive customer emotions
- The customer is more loyal and spreads the word about the brand
- The customer repeats the Customer Retention Model and encourages others to do so