81% of Shoppers Willing to Pay More for Better Customer Experience,
Oracle Research Shows
Customer Experience Provides Strategic Driver for Business Growth
REDWOOD SHORES, CA and READING, UNITED KINGDOM -- (Marketwire) --
12/10/12 -- Oracle (NASDAQ: ORCL)
-- Research released today from Oracle has revealed that customer
experience is now a key driver for revenue growth in Europe, and an
effective channel for brand differentiation in a globalized economy
where products and services are increasingly commoditized.
-- The research report, "Why Customer Satisfaction is No Longer Good
Enough," reveals that 81% of consumers surveyed are willing to pay
more for superior customer experience. With nearly half (44%) willing
to pay a premium of more than 5%.
-- Improvement of the overall customer experience (40%), providing quick
access to information and making it easier for customers to ask
questions (35%) were cited as key drivers for spending more with a
-- The pan-European research, carried out in June 2012 by independent
research company Loudhouse, surveyed 1400 online shoppers (50% female,
50% male) who had made a complaint or enquiry to a customer service
department in the last 12 months.
-- For full research findings please go to: http://bit.ly/UwmB3j
-- Benefitting from churn: In addition to driving new revenue growth, a
good customer experience is also essential to protecting existing
revenue channels. Seventy percent of respondents have stopped doing
business with a brand following a poor customer experience.
Importantly, 92% of this number have gone straight to a competing
brand and made a purchase. With fewer than a quarter of consumers
(22%) nearly always satisfied with their customer experience, there is
a clear opportunity for brands to improve customer service to win
market share from competitors.
-- Drivers for revenue growth: The survey has indicated steps businesses
can take to benefit from the opportunities provided by a positive
customer experience. Respondents said that the top five changes to
customer experience that would lead to them spending more money with
that company are:
-- 40% - Improvement in the overall customer experience
-- 35% - Ensuring questions can be asked easily and information
accessed before making a purchase
-- 32% - Adopting an easy return policy
-- 26% - Improving the overall website usability and search
-- 20% - Providing customers with a more tailored/personalized
-- Brand loyalty: Eighty-two percent of respondents describe their
experiences as requiring too much effort, suggesting that brand
loyalty is closely linked to ease of communication. Respondents listed
having to use different methods of contact to resolve an issue (26%)
and using different methods several times (24%) as the point at which
dealing with customer service requires too much effort. Businesses
wishing to benefit from the revenue implications of providing a good
customer experience therefore need to focus on making their customer
interactions as simple as possible.
-- Social media: The research also revealed that many organizations are
failing to make the most of the customer experience opportunities
available to them through social media channels, with only 46% of
respondents claiming to have received a reply from a company after
posting a comment. The research indicates that 29% of these became
angry when the response failed to resolve their issue.
-- Danny Rippon, CRM Business Solutions Director, Oracle, said: "Our
report has made one thing absolutely clear: getting customer
experience right can help increase revenue and win customers away from
competing organizations. By creating a consistent and connected
experience across all points of customer contact -- including the
increasingly important social channel -- businesses can clearly
differentiate themselves and build priceless brand capital. As an
absolute fundamental, businesses must ensure that their customer
experience systems can support fulfillment and service to the extent
demanded by consumers, while at all times making it as simple as
possible for them to interact with the brand. This is the key both to
winning new customers and retaining them for the long-haul."
-- Oracle Customer Experience
-- Customer Experience Online Forum: Join the Revolution
-- Why Customer Satisfaction is No Longer Good Enough Report
-- Follow @OracleCX on Twitter
-- Connect with Oracle Customer Experience on Facebook
Notes to Editors
The survey focused on 1400 online shoppers (50%
female, 50% male) who had made a complaint or enquiry to a customer
services department in the last 12 months. The survey was conducted
by market research company Loudhouse in the UK, Germany, France,
Sweden, the Netherlands, Italy and Spain during June 2012.
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