81% of people would spend more for a better experience, says Capgemini

81% of people would spend more for a better experience, says Capgemini

Firms with closely linked business and customer experience operations win big, finds report

Rebecca Gibson |


A new Capgemini survey has revealed that 81% of consumers would be willing to spend more money with an organisation that provides a good customer experience, compared to one that does not listen to their feedback or reward their loyalty.

Capgemini’s The Disconnected Customer: What digital customer experience leaders teach us about reconnecting with customers report surveyed 3,300 consumers of 125 companies in Australia, China, France, Germany, India, the Netherlands, UK and US.

According to the research, eight in ten of the surveyed consumers would spend more with a business that is meeting their expectations, with one in ten saying they would increase their spend by more than half.

However, although 75% of the surveyed organisations believe they are customer-centric, only 30% of consumers agree. Similarly, while 90% of companies said that their companies’ Net Promoter Score (NPS) had increased by five points over the last three years, only 54% of consumers thought the same.

Nearly a third of businesses said they were struggling to keep up with the rapidly evolving technology landscape and consumers’ digital expectations. Around 41% of businesses said they also lacked a dedicated customer experience budget, while 35% were challenged by issues relating to internal ownership of the digital customer experience.

“Digital has enabled new ways of engaging consumers, but is also driving new behaviours and creating new expectations,” said Pierre-Yves Glever, global lead of Digital Customer Experience at Capgemini. “It’s clear that many organisations are struggling to keep up with the pace of change.”

Capgemini’s research also 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. Companies with more digital attributes had a higher DCX Index score.

The research showed that for every point increase in the DCX Index score, consumers would be willing to spend 0.6% more with an organisation and the NPS result also rose by nearly five points. In addition, companies that closely link their business operations with customer experience enjoy a 14-point NPS advantage over those organisations whose business operations are not connected to customer experience. For example, the top 10 companies with the highest DCX Index saw their share prices increase by 16% per year over the past five years, whereas the bottom ten players increased their share prices by an average of 6%.

“As our research reveals, experience is the new battleground, and how you connect will determine how you win,” said Glever. “Organisations that tightly link their business operations with customer experience will reap the benefits in both streamlined operational efficiency and customer satisfaction.”

 

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