Businesses Can Lose Up To 18% Revenue Due To Poor Customer Experience Strategy
Brands in India recognise financial impact of poor customer experiences, yet struggle to develop successful strategies, finds Oracle study.
Oracle recently announced the results of its “Global Insights on Succeeding in the Customer Experience Era” report with the primary finding that India-based enterprises can lose up to 18 percent while businesses worldwide can lose up to 20 percent revenues from the lack of a robust customer experience (CX) strategy. The research report also reveals that 93 percent executives globally believe improving customer experience is one of their organisation’s top three priorities in the next two years, and 91 percent wish to be considered a customer experience leader in their industry.
The research assesses the financial impact of not keeping pace with rapidly evolving customer expectations. It also details the challenges that businesses face in delivering great customer experiences, the types of programs that are most effective and priority investment areas to improve the overall experience. The report surveyed 1,342 senior-level executives from 18 countries in North America, Latin America, Europe and Asia Pacific to asses:
- The financial impact of customer experience.
- The challenges businesses face delivering great customer experiences.
- The priorities for the next 12 months
- Where businesses are investing to improve the customer experience.
93 percent executives globally believe improving customer experience is one of their organisation’s top three priorities in the next two years, and 91 percent wish to be considered a customer experience leader in their industry.
- 72 percent of Indian executives surveyed feel that customers are willing to pay more for great customer experiences.
- 49 percent of respondents indicated that customers will switch brands due to a poor customer experience.
- As social media amplifies the customer voice and businesses scramble to answer it, the study indicates that 81 percent of the Indian executives surveyed believe that delivering a great customer experience today requires leveraging social media effectively. However, 35 percent do not have social media for sales channels and 35 percent do not use social media for customer service.
- Indian businesses are still weighing the importance of customer experience and only 29 percent are just getting started with a format customer experience initiative, while a mere 24 percent consider the state of their customer experience initiative to be advanced and 47 percent are still assessing CX implementations.
- On being questioned on priorities for the next 12 months, Indian executives said that improving the online customer purchase experience is the number one priority for Indian enterprises’ customer experience program. Next in line is the need to improve the cross-channel customer experience. Improving the online customer support experience and mobile customer experience were deemed equally important.
- According to the study, Indian enterprises will increase spend on customer experience technology by 18 percent in the next two years, especially in areas such as loyalty management, self-service capabilities on websites, analytic tools to gain an integrated customer view across all channels and to better understand customer behaviour.
- The surveyed executives cite a number of limitations to adoption of CX strategies. Inflexible technology (39 percent), siloed organisations and systems (27 percent), and difficulty tracking performance and customer feedback (29 percent) were declared to be the biggest obstacles to delivering the best possible customer experience.
"The report’s findings endorse the criticality of delivering the promised consumer experience every time, all the time, failing which customers will readily switch to rivals. Organisations around the globe, and particularly in India, are missing significant revenue opportunities by not differentiating themselves across all channels, touch points and interactions to nurture customers and build loyal relationships," said Atul Tuli, Sales Director – Fusion CRM, Oracle ASEAN. "For businesses to succeed they must drive towards a 360 degree view of customer interactions; invest in open and integrated technology; and leverage analytics to drive decision making and personalised customer communication. This is the key to winning new customers, as well as to retaining them for the long-haul."
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