Has Customer Experience Overtaken Price as a Factor?

Customer experience (CX) has become a significant factor for customers and businesses to consider when making a purchase decision. As the century comes to a closure, more organisations have redirected their investments to innovations related to customer experience. According to a study by Walter, price will be overtaken by customer experience as a critical brand differentiator by 2020. While that may sound like a trend to watch in the future, a significant number of customers today are loyal to brands based on customer experience and not price. There are numerous reasons why customer experience has overtaken price as a factor. Here is an outline of some of these reasons.

Customer Expectations

Over the years, technology has allowed businesses to gain access to a wealth of information about their customers. As a result, customers expect that businesses will monitor their purchase trends and meet their expectations. Failure to meet customer expectations has made it relatively easy for customers to switch loyalties. According to research by Flavio, over 89% of customers are willing to switch their loyalty to a competitor on having a bad customer experience. In other words, customers are more concerned about customer service more than they are about a product and its price.

More Companies Have Become CX Pace Setters

According to a study by Gartner, most IT leaders and companies have found CX to be a sustainable source of competitive differentiation. More organisations such as Netflix, Amazon, and Spotify have become standard-bearers as far as customer experience is concerned. This has made more businesses to shift from their traditional service-based differentiation to customer experience. It is essential to note that CX is not only for digitally native companies, but it is also an essential part for all types of businesses looking to establish a lasting relationship with their customers.

Customers Dictate Customer Experience

Today, customers are more informed and knowledgeable about brands, CX, and products than they used to decades ago. Customers are no longer making impulse purchases. Instead, most customers have their purchase decision premeditated before they go shopping. Customers expect that businesses understand their purchase needs and that they will get a personalised experience while shopping. For example, offering customers both same-day delivery and next day delivery leaves them satisfied throughout their buying experience.

Customer Retention

Price has been a significant brand differentiator for a couple of decades. Over time, however, businesses have realised that affordable prices will not retain a customer. Instead, customers will continue purchasing a product on the basis of the experience they get while buying the product. Following this trend, over 42% of businesses have invested in CX for purposes of customer retention. This is according to a study by Genesys. Offering your customers a good experience alongside excellent after-sale services such as timely deliveries will not only help you retain existing customers, but it will also attract more customers to your business. Always consider giving your customers a worthy experience each time they make a purchase from your business.