As a consultant who works with numerous small and medium-sized businesses on growth strategy, I always emphasize the importance of customer experience (CX). Why? Your customers are the lifeblood of any company, so you must create positive experiences that turn them into loyal brand advocates.
The data clearly shows that prioritizing customer experience pays tremendous dividends – boosted revenue, lower churn, positive word-of-mouth, and reduced marketing costs to acquire new customers. Simply put, delivering an excellent CX is non-negotiable if you want your company to thrive.
Don‘t just take my word for it. Here are 20 vital CX statistics that prove why small businesses must make customer experience a priority in 2024:
1. 81% See CX as a Key Competitive Differentiator
Providing excellent customer service and experiences is a way to stand out. 81% of companies say CX is a vital brand differentiator, giving them an edge.
2. 62% Expect Proactive, Personalized Experiences
Customers increasingly want proactive, personalized experiences. Per research by Pega, 62% now expect this level of service.
3. 42% Will Pay More for Better Experiences
Many customers don‘t mind paying extra for great service. 42% of consumers say they‘ll pay more for a smooth, frictionless CX.
4. 52% Churn After One Bad Experience
You might only get one chance with over half of customers. Approximately 52% will switch brands after just a single disappointing experience.
5. 74% Buy Based on Experience Alone
The experience itself drives purchases for most customers. About 74% of consumers say they‘ll buy solely based on their CX with a brand.
6. 65% Become Loyal After Positive Experiences
While bad experiences lose customers, good experiences create brand advocates. 65% report they’d likely become long-term, loyal customers after positive experiences.
7. 70% Won By How Customers Feel They‘re Treated
According to McKinsey research, a staggering 70% of buying experiences come down to how customers feel they‘re treated.
8. 300% Higher Customer Lifetime Value
Companies investing in CX initiatives see dramatic boosts in lifetime customer value – over 300% higher than those that don‘t focus on CX.
9. 80% Revenue Boost From Excellent Experiences
Per Zippia research, companies providing excellent experiences report around an 80% increase in overall revenue.
10. 61% Won‘t Recommend After Subpar Mobile Experience
If your mobile experience is lacking, expect consequences. Approximately 61% of customers won‘t recommend brands after a frustrating mobile experience.
Key Takeaways for Small Business Owners
- CX is the #1 brand differentiator – Focus resources here
- Customers will pay more for better experiences – Don‘t skimp on CX
- One bad experience loses a customer – Obsess over preventing poor experiences
- Customers buy and become loyal based on how you make them feel – Map the entire journey to find pain points
- Investing in improving CX boosts lifetime value 300% – Commit resources to CX initiatives
As a consultant, the universal advice I give entrepreneurs and small business owners is this: make customer experience your top priority if you want stand out from competitors and fuel sustainable growth.
Use the compelling statistics in this article to justify allocating resources towards enhancing CX across marketing, sales, service, support, and operations. Going into 2023, excellent CX is non-negotiable for any company that wants to acquire and retain happy, loyal customers.
