Worldwide, companies wish to improve their interaction with customers, but many are at a loss about how to do it.
Oracle has announced the results of its Global Insights on Succeeding in the Customer Experience Era report, a global survey of 1 342 senior-level executives from 18 countries in North America, Europe, Asia Pacific and Latin America which yields new insights on the challenges, strategies and lessons learned for succeeding in the customer experience era.
Key findings of the survey include:
* Global strategic priority with huge financial stakes – 97% of executives agree that delivering a great customer experience is critical to business advantage and results, and respondents estimate that the average potential revenue loss for not offering a positive, consistent and brand-relevant customer experience is 20% of annual revenue.
* Businesses stuck in idle – 93% of executives say that improving the customer experience is one of their organisation’s top three priorities in the next two years, and 91% wish to be considered a customer experience leader in their industry.
However, many organisations are stuck in an execution chasm; 37% are just getting started with a formal customer experience initiative, and only 20% consider the state of their customer experience initiative to be advanced.
* The perception chasm – the study revealed that business executives underestimate the impact of customer experience on behaviour. Forty-nine percent of executives surveyed indicated that customers will switch brands due to a poor customer experience, but a full 89% of customers say that they actually have switched brands due to a bad customer experience.
* Social media a key driver for the future – social media amplifies the customer voice, and businesses are scrambling to answer. Eighty-one percent of executives believe that delivering a great customer experience today requires leveraging social media effectively. But, 35% do not have social media for sales channels, and 35% do not have social media for customer service.
* Technology, people and processes present significant obstacles – executives cite limitations from inflexible technology, siloed organisations and systems, and insufficient investment as the biggest obstacles to delivering the best possible customer experience.
* Businesses are investing in customer experience – on average, businesses estimate that they will increase spending on customer experience technology by 18% in the next two years. Improving the cross-channel experience and customer analytics are top priorities.
* Lessons learned – a good customer experience strategy requires fundamental organisational changes. Successful initiatives that have improved the customer experience span people, process and technology.
“This report demonstrates that organisations around the globe and across many industries are beginning to understand the real business impact of not offering great customer experiences, but are facing execution challenges.
“We recommend that organisations map their customers’ journeys to identify specific improvement areas that will help them cross the execution chasm. By empowering customers and employees, breaking down organisational silos, and implementing flexible processes and technology tools, organisations can deliver personalised, seamless customer service through the entire experience lifecycle,” says David Vap, group VP of Oracle.