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BizReport : Ecommerce : June 02, 2015


Survey reveals the cost of CX failures

New research reveals that 1 in 5 customer experience failures happen before the customer has made a purchase and reveals the top four failures.

by Helen Leggatt

In their survey of more than 2,700 consumers across nine countries and three generations, British software firm SDL found that 1 in 5 customer experience failures happen before a purchase is made and 1 in 3 occur post-purchase.

Furthermore, once a customer experiences what they consider a major failure, brands risk serious reputation and financial consequences. Almost two-thirds (64%) will stop recommending the brand and 30% look for an alternative brand. Twelve percent will actively disparage the company via word of mouth, social media or other online channels with consumers in the UK and Australia the most vocal.

During the twelve months following a failure brands can expect to lose 65% of the revenue from those who experienced the failure with 90% saying they will spend less or the same during that time.

The top four failures uncovered by SDL's research are:

- Poor response times (35%);
- Lack of employee empowerment to resolve the issue (31%);
- Poorly trained employees (30%); and
- Inaccurate or conflicting information (29%).

"Consumers have high expectations for brands today and little patience for a break-down in experience," said Paige O'Neill, CMO, SDL. "While the good is expected, the bad will go viral. Keeping this in mind, organizations must have an integrated strategy in place that caters to each individual consumer and empowers employees to meet customers' needs."

Despite failures, the vast majority of consumers (82%) want to try and resolve the issue. However, if a resolution is not forthcoming, only 1 in 5 would consider using that brand again and, of those that do hang around, more than half (59%) would be less loyal.

Tags: brand marketing, customer experience, ecommerce, online, retail, survey










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