Customers: "Take our data and money… just improve the experience FFS"by
Customers are crying out for better service experiences – and new research demonstrates that not only are they willing to share more personal data to support improvements, but they will also pay more.
A study of over 3,300 consumers and 450 executives by Capgemini reveals the significant gap that exists between how businesses and consumers perceive the quality of their customer experience.
The report - The Disconnected Customer: What digital customer experience leaders teach us about reconnecting with customers – suggests that while three-quarters (75%) of organisations believe themselves to be customer-centric, only 30% of consumers agree.
Exploring this divide further, Capgemini used the Net Promoter Score model to gauge consumer satisfaction, discovering that 90% of companies believed that their organisations’ NPS had increased by 5 points over the last three years. While this increase in NPS should be reflected by consumer opinion (based as it is on customer propensity to recommend), the study found that only half (54%) of consumers agreed with the finding.
Overall, only three in ten of the 125 unique organisations identified in the study are matching their customers’ expectations.
Frustrated by the experience they receive, the majority of consumers are prepared to take steps to improve service.
A study over 3,500 consumers by RichRelevance found that over three quarters of UK consumers (81%) are happy to share more data with retailers if it improves the customer experience - although 46% UK shoppers would prefer to share data anonymously.
Meanwhile, the Capgemini report suggests that the same number (81%) would be willing to increase their spend with an organisation in return for a better experience. Furthermore, 1 in 10 (9%) consumers said they would be willing to increase spend by more than a half.
The study also indicates that the role of digital is pivotal to what consumers consider to be a positive experience.
Digital's important role
Capgemini’s Digital Transformation Institute evaluated organisations across 80 different digital experience attributes - ranging from the ability to view and edit personal data to personalising products and services on mobile devices - to create a Digital Customer Experience (DCX) Index. The more digital attributes an organisation has deployed the higher its DCX Index score.
When mapped against consumers’ willingness to spend more and NPS, Capgemini discovered that for each single point increase in the DCX Index score consumers would be willing to spend 0.6% more with an organisation and the NPS then also increases by nearly 5 points.
The report concludes that the DCX Index is strongly correlated to the NPS of a company, with the ten companies with the highest DCX Index seeing their share prices increase by 16% per year over the last five years. This compares to the bottom ten brands, whose share price only increased by an average of 6%.
The RichRelevance study also sheds further light on the kinds of digital technologies that consumers would like to see brands deploying to improve the customer experience. As nominated by the study respondents, the top five technologies were:
- Fingerprint scanning that allows shoppers to pay for goods and get automatic home delivery – nominated by 56% of respondents, with an 11% increase compared to 2016 results.
- The ability to search and order products using voice-recognition technology – voted for by 45% of UK shoppers.
- Interactive changing room mirrors. Screens in changing rooms that suggest complementary products received 44% of the UK vote.
- Contactless shopping. Instead of checking out at a till, shoppers simply leave the store with their items and their account is charged contactlessly. Good news for Amazon Go’s contactless store concept.
- Robots guiding shoppers to products in store aisles – nominated by 34% of UK respondents.
Neil Davey is the managing editor of MyCustomer. An experienced business journalist and editor, Neil has worked on a variety of newspapers, magazines and websites over the past 20 years, including Internet Works, CXO magazine and Business Management. He joined MyCustomer in 2007.