15 CX Stats That’ll Change the Way You Look At Customer Service
In the next few years, an organization’s Customer Experience (CX) will play a greater role in its success than its products or prices. To paraphrase author and keynote speaker Micah Solomon, CX is not a cost center, it’s a revenue generator.
That’s why businesses must take all the possible steps to enhance CX. One of the most effective ways to improve CX is by leveraging the right contact center software. Sophisticated contact center software comes with many features and specifications that can help an organization deliver superior CX.
Apart from leveraging the right tools to enhance CX, organizations must also remain abreast of the recent developments in CX. In this blog post, we discuss 15 CX stats that will change the way you deliver customer service. Read on and thank us later.
1. 80% Increase in Revenue for CX-Focused Companies (Zippia)
As per stats released by Zippia, a San Mateo-based provider of an online tool to help people plan their careers, revealed that companies that focus on CX report an 80 percent increase in revenue. This statistic highlights the direct correlation between customer satisfaction and business success.
Businesses should be focused on customers and must do whatever it takes to provide them with the best experience. Once they succeed in that, the profits will take care of themselves. As entrepreneur and motivational speaker Jim Rohn said, “If you make a sale, you make a living. If you make an investment of time and good service in a customer, you can make a fortune.”
2. 60% Higher Profits for Customer-Centric Brands (CX Index)
As per data by CX Index, customer-centric brands report profits that are 60 percent higher than those that fail to focus on CX. Interestingly, customer service expert Ernest C. Murphy famously said “Companies that prioritize their customers’ experience generate 60 percent higher profits than their competitors.”
This figure underscores the financial benefits of putting customers at the heart of business strategies. Such brands not only retain more customers but also command premium pricing and reduce customer churn.
3. 80% of Organizations Increasing Customer Service Budgets (Zendesk CX Trends Report 2023)
According to Zendesk CX Trends Report 2023, 80 percent of leaders plan to increase customer service budgets over the next year. It seems a significant majority of business leaders heed what Zappo’s CEO Tony Hsieh said about customer service—“Customer service shouldn’t be a department. It should be the entire company.”
Increasing customer service budgets reflects a strategic shift towards improving customer interactions and support processes. Many companies will leverage contact center software to meet rising customer expectations and deliver exceptional experiences consistently.
4. 90% of Businesses Making CX Their Primary Focus (CX Index)
As per data by CX Index, 90 percent of organizations, irrespective of the vertical they are operating in, have stated that they have made CX their primary focus. A study conducted by Harvard Business Review found that over three-fourths of executives have said that CX is their top priority.
That’s a huge number! It underscores the widespread awareness about CX and it would be not surprising to know that a majority of the businesses have already invested or are planning to invest in sophisticated contact center software.
5. 41% Revenue Growth for CX-Obsessed Organizations (Forrester)
As per data released by Cambridge-based research and advisory company Forrester, 41 percent of CX-obsessed organizations reported revenue growth of at least 10 percent in their last financial year. Only 10 percent of less-mature companies could achieve the feat.
This highlights CX as a critical factor in achieving sustainable business success. By focusing on delivering exceptional customer experiences consistently, businesses can differentiate themselves in competitive markets and foster long-term profitability.
6. 40% Higher Revenue from Personalization (McKinsey & Company)
A study conducted by global management consulting firm McKinsey & Company found that companies that grow faster drive 40 percent more of their revenue from personalization than their slower-growing counterparts.
This emphasizes the strategic importance of personalization in CX efforts facilitated by advanced contact center software. Personalized interactions not only enhance customer satisfaction but also drive increased sales and customer lifetime value.
7. 80% of Organizations Competing Based on CX (Gartner)
As per a study conducted by Gartner, 80 percent of organizations expect to compete mainly based on the quality of CX they provide. This should not be surprising at a time when a majority of customers are choosing to do business with companies based on the experience they receive.
This stat accentuates the quote by Dell’s CIO Jerry Gregoire “CX is the next competitive battleground. It’s where business is going to be won or lost.” Global CX expert and author Kerry Bodine also said “Exceptional CXs are the only sustainable platform for competitive differentiation.” By delivering as best CX as possible, organizations can carve a place for themselves in the highly competitive market and retain loyal customers in the long run.
8. Global CX Spending to Reach USD 641 Billion (IDC Spending Guide)
As per new IDC spending guide, the global spending on CX is set to reach USD 641 billion this year, an increase of over USD 130 billion since 2019. It seems all the major companies in the world resonate with the quote of author and keynote speaker Micah Solomon, “CX is not a cost center, it’s a revenue generator.”
This growth reflects heightened investments by businesses in technologies and solutions that enhance customer engagement, support omnichannel interactions, and improve overall customer satisfaction. As organizations strive to deliver superior CX, they leverage advanced analytics, AI-driven insights, and cloud-based platforms to optimize customer service delivery and drive operational efficiencies.
9. 73% Customers Prioritize CX in Purchasing Decisions (PwC)
As per a study conducted by PwC, one of the biggest advisory companies in the world, 73 percent of customers now say CX is the number one thing they consider when deciding whether to purchase from a company.
A majority of customers now rank CX as their primary consideration when choosing between brands, emphasizing the need for seamless, personalized experiences. The stat clearly tells us that the present-day customers are not willing to settle down for anything less than the best. Organizations must keep this in mind and design their CX initiatives accordingly.
10. 15% Annual Growth in American CX Market (Grandview Research)
As per a report released by Grandview Research, the American CX market is projected to grow 15 percent every year from 2021 to 2028. As businesses in the United States prioritize enhancing CX, they are expected to invest in technologies that facilitate personalized customer interactions.
This growth trajectory indicates a strong demand for CX solutions and services across industries in the US. This is not the case in that country only, but countries around the globe starting from the UK to Australia, Brazil, South Africa, India, and more would be witnessing robust growth in their respective CX markets. The growth is propelled by digital transformation initiatives and the increasing adoption of customer-centric strategies.
11. 60% of Experts Expect AI to Impact CX (CMSWire)
As per a survey conducted by CMSWire, 60 percent of CX leaders expect Artificial Intelligence (AI) to considerably impact customer experience in the next two to five years. The rapid evolution of AI and the emergence of generative AI transformed many sectors. So it’s just a matter of time that AI revolutionized the way organizations deliver CX.
The impact will mostly be seen in the realm of customer self-service, gaining customer insights, and empowering their employees to focus on higher-impact tasks. Even though AI is going to impact CX, the way organizations use it will make all the difference. As the popular catchphrase doing the rounds on the internet goes: AI is cool but a great CX makes all the difference.
12. 65% of Customers Consider Positive CX More Influential than Advertising (PWC)
As per a study by global management consultant PwC, 65 percent of customers consider positive CX more influential compared to high-budget advertising. That’s natural. When organizations advertise, they manage to gain visibility and attract new customers. But when they invest money and time to deliver great CX, they manage to retain customers. And that’s what makes all the difference in the long run.
It is widely known that retaining an existing customer is five to seven times less expensive than attracting a new one. That’s why modern-day organizations should learn from Zappo’s CEO Tony Hsieh quote “Let’s take most of the money we would’ve spent on paid advertising and invest it in the CX.”
13. 49% of Customer Defections Due to Poor CX (Emplifi)
As per a stat by Emplifi, 49 percent of customers who left a brand to which they’d been loyal in the past 12 months say it’s due to poor CX. CX undoubtedly has a direct impact on customer retention and churn rates. Just imagine the horror of an organization when it loses almost half of the customer base it has built over years.
Organizations must ensure that they don’t provide a single negative CX to their customers, new or old. It takes years to build reputation and loyalty but just seconds or minutes to ruin it. Once organizations keep that in mind, they will do things differently.
14. 66% of Customers will Share Personal Data If It Can Enhance CX (Redpoint and Harris)
As per a data by Redpoint and Harris, 66 percent of respondents are ready to share personal data about themselves if they think it will elevate their CX. This stat tells us the role CX plays to render trust in customers. Trust is everything.
When customers share their personal data and information, they always do so after they feel confident that their data would be used properly. Its use would be secure and transparent. That’s why when businesses take personal customer data, they should not just focus on delivering excellent CX but also make sure that the data is safe from the wrong hands.
15. CX-Driven Companies Retain Nearly Twice Number of Customers Than Non CX-Driven Firms (Adobe)
As per a study conducted by Adobe, CX-driven organizations register nearly 2X more growth on a year-on-year basis in customer retention, customer lifetime value, and repeat purchase rates compared to non CX-driven companies.
Another stat by Forrester found that CX-driven organizations grow their revenue rate 1.4X faster than their non CX-driven competitors. As per stat by Retail CX, CX leaders bring in almost 6 times more revenue than laggards.
All In All,
These 15 compelling CX statistics underscore the pivotal role of customer service in shaping business success. Armed with these insights, businesses can strategically enhance customer interactions, foster loyalty, and drive growth. Leveraging advanced tools like HoduCC contact center software can streamline operations, boost agent productivity, and deliver seamless customer experiences.
By embracing data-driven strategies and prioritizing customer-centric initiatives, organizations can position themselves at the forefront of delivering exceptional experiences that resonate long-term. Empower your teams with the right technology and insights to elevate your customer service efforts to new heights
