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BizReport : Ecommerce archives : September 04, 2014

Better economy means experience counts

If you think a good customer experience only matters when the economy is in bad shape, think again. A new study points out customer experience is actually more important under a good economy that a struggling one.

by Kristina Knight

Researchers with the Informs study found that for a business who turns the focus to customer experience improvements, the business will see a 10% increase in revenue if the economy is bad; conversely, under a good economy, the same improvements should result in a 20% increase in revenue.

Most experts call into one of two camps: those who believe pushing dollars into experience when businesses are struggling will help them create loyal and engaged shoppers or those who believe, in a better economy, businesses should focus on future purchases or personalization. But, according to this report a thriving economy should signal retailers and brands to focus on the experience - because consumers have more money to spend.

V. Kumar, one of the authors of the report and Regents' Professor at Robinson College of Business at Georgia State University, said, "While both sides of the debate are plausible, neither has been empirically verified with real data and from the perspective of the customer. We find that customer experience matters more to customers when the economy is strong."

Image via Shutterstock

Tags: ecommerce, ecommerce content, ecommerce experience, Informs

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