5 Experience Predictions for Retail in 2019
In the retail industry, one that’s known for its ability to continually reinvent itself and find new ways to connect with consumers, the huge shift in consumer behavior from physical...
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Consumers today are sophisticated and do their research before making a purchase. They expect to have a seamless and positive experience and, if those expectations aren’t met, consumers know they have options. For companies looking to create a competitive edge, having a strong brand recognition, or even a stellar product isn’t enough. Customer experience is the tipping point, and without a strong plan to create and maintain a positive experience, businesses will lose out.
Medallia partnered with Ipsos on a study which I truly believe shows us some fresh indications of where we should be putting efforts if we want to differentiate – and of course also confirm some key areas that we are continuing along the right path. The research was conducted by Ipsos across 8,002 consumers over 4 countries and across 6 vertical sectors: retail (both online and offline), banking, insurance, mobile network providers, and hotels.
The findings illustrate that customer experience is the top reason consumers cite for choosing a particular brand when making a purchase. The data also shows that consumers are quick to both penalize and reward a brand based on their experience. In fact, 77 percent of respondents claim to have chosen a product or service from a company because of good experiences they had with it, while 64 percent of respondents said they have avoided a brand because of a bad experience they had within the last year.
Millennials and Gen Z are the least brand-loyal, as 70 percent of millennials and 68 percent of Gen Z have avoided a brand or product because of a bad experience. Businesses with a high proportion of these younger consumers may need to take a more creative approach to promote loyalty and consider tactics such as tie-ins for products and services that millennials love (e.g., credit card companies that offer early tickets to sought-after events).
The research also shows us that brand reputation contributes just 16 percent of the purchase influence, while opinion leaders such as celebrities only influence a purchase decision by 3 to 6 percent – so you maybe want to carefully think before you ask David Beckham or Beyonce to endorse your brand. These results are extremely useful in helping us to re-assess CX strategy and marketing expenditure today, and are an invaluable peek into the future of what is increasingly important to our consumers. Read the full report.