Wonder

Research Outline

Prepared for Sebastian | Delivered October 4, 2019

Customer Experience and Improved Sales

Goals

Gain an understanding of how creating a connection or delivering a positive customer experience results in improved sales as well as more predictable usage outcomes

Early Findings

 One study showed that companies typically receive $3 in profit for every $1 they spend on improving customer experience.
 
It was also reported that improvement in customer experience increases customer satisfaction which increased customer acquisition and retention by 41%. 

 A study by McKinsey showed that brands that improve their customer experience improved revenue on average by 10-15%. 

Customers surveyed noted being willing to pay between 13-18% more for a great customer experience. 

 Large companies have the most to benefit from improving customer experience. Companies that are currently earning $1 billion per year are projected to increase revenue by $700 million within the first three years of improving customer experience. 

Customer experience may soon be the key brand differentiator, with a study predicting that by the end of 2020, it will outweigh both price and product quality. 

 86% of buyers noted that they would be willing to pay more for a product or service that offers a great customer experience.

Lost sales are exponentially related to customer experience with 1 in 3 customers stating they would leave a brand they love after one bad experience, and 92% would leave after 2-3 negative experiences. 

It is noted that approximately $1.6 trillion is lost per year by businesses in the US due to poor customer experience.