Medallia and Ipsos partnered to gauge consumer expectations of customer experience with a brand across industries, age, and region
SAN MATEO, Calif., June 20, 2018—Medallia, Inc. (medallia.com), the global leader in customer experience management, together with Ipsos, the leading independent market research company, today announced the findings of the Customer Experience Tipping Point survey. More than 8,000 consumers were surveyed across the US, UK, France, and Germany. The findings reveal that customer experience is the top reason consumers cite for choosing a particular brand when making a purchase.
The data 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.
“Consumers today are sophisticated and do their research before making a purchase. They expect to have a seamless and positive experience and if those aren’t met, consumers know they have options,” said Rachel Lane, Solution Principal, Medallia. “For companies looking to create a competitive edge, having a strong brand recognition, or even 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.”
According to the survey, the demand for a positive customer experience is especially high in the United States, and while loyalty is on the decline, expectations are on the rise, particularly among younger groups of consumers. For example, in banking and online retail, 30 percent of Gen Z and 22 percent of Millennials surveyed indicated that their expectations of customer experience are higher today than they were two years ago. The survey shows expectations have risen in the US across all six industries examined, and US respondents reported significantly higher expectations than European consumers for personalized experiences, real-time response, and ability to chat with a live agent.
“Acknowledgement of customer experience as a driver of business performance is at an all-time high. Failure to properly understand customer needs leads to wasted money, time, and energy,” said Jean-Francois Damais, Chief Research Officer at Ipsos. “Ipsos’ extensive research has shown that when it comes to dealing with customer issues, the key is to reduce perceptions of unfairness. That’s all about getting the balance of effort right. It’s a time-critical case of reacting intelligently, being mindful of your customer and knowing when it’s enough to say sorry. And perhaps more importantly, when it isn’t.”
The study also revealed that:
Medallia partnered with Ipsos to conduct a panel survey of 8,002 consumers from four countries — US (2,002), UK (2,000), France (2,000), and Germany (2,000) — across six industry sectors: online retail, offline retail, banking, insurance, mobile network providers and hotels. The collected sample was approximately matched to the census of each country on age and gender. The research was conducted online, in the local language for each country, and respondents were incentivized to participate.
To view the full report visit The Customer Experience Tipping Point Study.
Medallia’s vision is simple: to create a world where companies are loved by customers and employees alike. Hundreds of the world’s largest companies and organizations trust Medallia’s cloud platform to help them capture customer feedback everywhere the customer is (on the phone, in store, online, mobile), understand it in real-time, and deliver insights and action everywhere—from the C-suite to the frontline—to improve their performance. Medallia has offices in Silicon Valley, New York, London, Paris, Sydney, Buenos Aires, and Tel Aviv. Learn more at medallia.com.
Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry. Ipsos is the global leader in designing, managing and delivering value from CX Management programs. We turn our clients’ customer strategies into a clear CXM action plan and deliver the insights, technology and change-management services to achieve their vision.
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