Bank and Hotel Loyalty Strongly Influenced by Customer Experience
June 15 2023 - 9:00AM
Business Wire
Among industries, a great customer experience
at a hotel leads to outsized loyalty, and a bad experience at a
bank is most likely to cause customer churn
New research highlights the importance of
frontline customer service experiences to driving loyalty
Electronics makers, hotels and airlines are most likely to drive
positive business results through great customer experiences,
according to new research from the XM Institute at Qualtrics
(Nasdaq: XM). On the flip side, poor customer service is especially
costly for banks and credit card companies.
Recent research from XM Institute looked at which industries
have the most to lose and the most to gain from good or bad
customer experiences, examining how interactions affect customers’
likelihood to purchase more from a company, recommend it, and trust
it. Customer loyalty is built on any and every interaction someone
has with a brand, such as customer service calls, sales floors and
check-in desks.
Supermarkets are the most resilient industry, which may be
influenced by additional factors like convenience and prices.
According to the XM Institute, 50% of consumers said they either
decreased or stopped spending entirely with a company after a
negative interaction, meaning bad experiences put 8% of companies’
annual revenue at risk. Consumers are slightly less likely to turn
away than they were in 2021 when 53% of people said they’d cut
spending after a bad experience, but in an uncertain economy,
customer retention is even more important.
“Customers have more options than ever before, making the effect
of a great experience critical for building a loyal customer base,”
said Bruce Temkin, head of XM Institute at Qualtrics. “This
goodwill extends beyond a single customer, as the happiest
customers are also much more likely to recommend a company to
others.”
Friction Trying to Reach Customer Service Turns Customers
Away
If a customer says anything went wrong in their interaction, US
consumers are significantly less likely to give a company more
business than if everything went smoothly.
When customers do run into a problem, they want a quick and
complete resolution, but a common challenge in the US was getting
help from the customer service department. In many industries,
trouble reaching customer service was the biggest friction point
keeping a customer from repeat business.
Frontline employees who interact directly with customers play a
crucial role in developing loyal customers, especially when they
are trying to resolve an issue. More than 60% of people who did not
have trouble getting help from customer service said they’d use the
same bank again, compared with only 25% of people who struggled
getting help.
“There are so many moving pieces to the overall customer
experience, it’s incredibly valuable for companies to understand
which journeys drive the most business impact,” said Temkin. “Not
all customer journeys can be perfectly smooth, but focusing on the
most important friction points goes a long way to ensuring repeat
customers.”
Industries that Benefit the Most from
Great Customer Experiences*
Industries that Risk the Most from Poor
Customer Experiences*
Electronics maker (87%)
Government agency (26%)
Hotel (85%)
Bank (28%)
Airline (85%)
Mobile phone provider (30%)
Online Retailer (85%)
Credit card provider (31%)
Department store (85%)
Property insurance (31%)
*Percent of customers who say they will purchase more after a
5-star or 1&2-star experiences
About XM Institute
Qualtrics XM Institute is the world’s premier resource for
experience management professionals. Led by industry visionary
Bruce Temkin, XM Institute’s faculty researches trends and emerging
practices in how organizations interact with their key
stakeholders, including suppliers, employees, customers and
partners. XM Institute also leads XM Pros Network, a thriving
global community of more than 6,000 XM leaders who participate in
an ongoing calendar of monthly events. The Institute maintains the
XM Professionals Certification, the gold standard credential in the
field. To access the latest XM content or for more information
about XM Institute, please visit xminstitute.com.
About Qualtrics
Qualtrics, the leader and creator of the experience management
category, is a cloud-native software provider that helps
organizations quickly identify and resolve points of friction
across all digital and human touchpoints in their business – so
they can retain their best customers and employees, protect their
revenue, and drive profitability. More than 18,750 organizations
around the world use Qualtrics’s advanced AI to listen, understand,
and take action. Qualtrics uses its vast universe of experience
data to form the largest database of human sentiment in the world.
Qualtrics is co-headquartered in Provo, Utah and Seattle, and
operates out of 28 offices globally. To learn more, please visit
qualtrics.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230615449019/en/
Lauren Braun, Qualtrics press@qualtrics.com
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