Why are customers willing to pay more for a better experience?
In a recent study called “The Disconnected Customer: What digital customer experience leaders teach us about reconnecting with customers” by Capgemini, a significant gap was found between how businesses and consumers perceive the quality of their customer experience.
Of the organizations surveyed, only 3 out of 10 match customer expectations. Research also revealed over 80% of consumers are willing to pay more for a better experience. This holds broadly true across sectors and countries, with around one in ten consumers (9%) actually willing to increase their spending by more than half!
In today’s digital age, regardless of whether we’re buying in-store or online, consumers now have an almost unlimited amount of information at their fingertips in order to make a decision. If you can’t find a review for a particular product or supplier, you’re probably going to immediately question its quality. Third party endorsement from other consumers and industry experts such as Trip Advisor and Amazon are an absolutely essential ingredient in sales conversion.
This wealth of information also helps determine where a customer is going to get the product or service from. If Company A is the cheapest option but Company B offers free delivery, free returns, a 24-hour helpline and a 3-year warranty, it’s fair to say that savvy shoppers are going to opt for the pricier one, especially if they feel it is worth the extra value.
Recently, Capgemini found a distinct correlation between a high quality of service and price and revealed that 4 in 5 people are willing to pay more for a better customer experience.
So why is this?
Ultimately, it comes down to the fact we want our voices heard and our loyalty rewarded, and a great customer experience makes us feel like we have achieved this. In most customer experience circumstances it comes down to speed, convenience and low effort required from the customer.
As an organization you need to invest in the digital customer experience. Think about what your customers value and what they care about. What is the connection between you as a brand and your consumer? Internally, the data and touch points need to flow through your organization and allow you to manage and meet the expectations and desires of your customers. What would be your ideal digital customer experience? Determine that and you can reap significant rewards.