Welcome to Success Strategies!
Yes, your customers will be pay up to 55% more for better Customer Experience (Defaqto Research). Let’s talk about how price fits into the whole Customer Experience equation. In my recent blog, “Customer Experience and Price: Is Price Really That Important to Customers?” the answer my surprise you. Customers want to be treated well first and foremost.
I found a few other interesting facts about price and better customer experience:
Is you customer more likely to leave you because of price or poor customer experience?
They are 4 times more likely to leave you for a competitor over a bad experience than price (Bain and Company)
What is the percentage of your customers that price is the primary factor in their decision-making?
Only 8% (Forrester). 92% of your customers will remain loyal if their experience with you is consistently good.
What percentage of customers believe their needs will be met on average?
The bar is very low; 1% (Forbes). Going the extra mile will make a big difference to your customers.
For further reading, I recommend these articles:
This blog explains how setting prices should fit into CX planning, “Customer experience should be central to planning and executing pricing actions,” and CX should be considered through the three filters that “Forrester proposes: Useful, Usable, Enjoyable.”
The Forbes post focuses on B2B Customer Experience in three categories 1.) Omnichannel Experience, 2.) Employee Engagement, and 3.) Personalized Relationships. Examples of how companies improved in each area are provided.
Clearing Up Assumptions about Pricing
Some of your staff may still think that price is all that matters to your customers so improving customer experience won’t make any difference.
As you see, by just the few facts above, that they need more information. Better Customer Experience will make a significant difference to your customers and your business. Many of our clients take the time to educate and train their frontline staff to clear up assumptions that how they treat customers doesn’t make a difference. It does. What has worked at your company to clear up any misconceptions about pricing and CX? Please let us know so we can share with our clients.
Are you ready to give customers what they want from you? Three installments of our four-part series that focuses on this question are now available. Throughout the series, we will explore the importance of the following topics:
- Make CX Easy: Is it easy to do business with your company?
- Effective CX Communication: Are you talking to your customers?
- Consistent CX: Top Four Tips to Build Powerful and Consistent Customer Experiences
- Customer Experience and Price: Is Price Really That Important to Customers?
We hope everyone has a safe and enjoyable holiday weekend!
A. Lynn Daniel
Founder & CEO
BLOG EXCERPT: Customer Experience and Price: Is Price Really That Important to Customers?
Yes, the title of this blog is provocative, intentionally so. How does Customer Experience and Price really impact your NPS®? Yes, price does matter, but less than you might think given our extensive research and the analysis from others. At The Daniel Group we often hear comments from clients that the only thing that matters to customers is “the lowest price.” There is a portion of B2B customers for which price is the predominant buying driver. However, according to a 2015 Forrester study, price is the primary driver for only about 8% of B2B customers, and good service trumps low price by a long shot.
Our Approach to Understanding the Impact of Price
Several years ago, at The Daniel Group, we improved many of our surveys by adding follow-up questions. For example, after the overall satisfaction scale question (1-10), we first asked, “What went well?” and then “What could have been better?” Verbatim responses are captured and tagged. The tagging allows us to quickly group responses (drivers) and analyze what customers liked and disliked. We can also see how specific drivers affect a customer’s NPS® (Net Promoter Score, likelihood to recommend).
Powerful Dashboards: Your CX Program-on-a-Page
For CX Champions and key stakeholders, managing a CX program can be a challenge: If your organization is fully engaged, there will always be a lot going on! We now have online dashboards available in Microsoft PowerBI to make it simple for you track key program details on a single page, with drill-down capabilities wherever more detail is desired.