89% of Companies Compete Primarily Based on Customer Experience (CX)

Since 2016, we have witnessed a change in consumer needs. According to Gartner's “Customer Experience Primer for 2016" report, 89% of companies compete primarily based on customer experience (CX). This statistic underlines that the quality of the product or service is no longer sufficient to stand out in the market.

Why has customer experience become so crucial?

1. According to PWC (2018), 73% of consumers believe that CX is a decisive factor when making purchasing decisions.
2. According to Salesforce (2020), 66% of consumers expect companies to understand their needs.
3. According to Zendesk (2024), 95% of customers tell others about a bad experience.
4. According to Zippia (2023), of the companies that focus on CX, there is an 80% increase in revenue.

Understanding the Customer: The First Step Towards Exceptional CX

Before implementing improvement strategies, it's crucial to deeply understand what customers do and need, so mapping the customer journey is an excellent option.2,3

Companies that optimize CX by focusing on the entire customer journey, rather than just individual touchpoints, can achieve better results in customer satisfaction and financial performance. According to McKinsey & Company (2016), this holistic approach makes it possible to identify and resolve points of friction, improving customer perception and loyalty.

Beyond Traditional Metrics: The Woku Approach

It is common to talk about quality and metrics such as NPS to understand if the company is achieving a good customer experience. But many times, these types of actions don't provide enough information to improve the experience.3,4

Instead of relying solely on traditional metrics, woku proposes a simpler, customer-centric approach to measuring and improving the experience.÷

A free field, so that the customer can say what they want. ⦁

1. Open and Contextual Feedback: Instead of being limited to numerical scores, woku allows customers to express themselves freely at key moments in their experience. This provides richer and more contextualized insights.
2. Real-Time Sentiment Analysis: The platform uses Artificial Intelligence to analyze sentiment in customer feedback, offering a deeper understanding of their experience.
3. Immediate Actionability: By providing insights in real time, woku allows companies to respond and adapt their customer experience in an agile and effective manner.

Example: A real estate franchisor company implemented woku to evaluate the training experience at the end of sessions with its agents. Thanks to woku's reports, they identified that training times were very long, something they had not detected with their previous evaluation methods. In response to this finding, the company implemented strategic breaks during the sessions. In the following training sessions, again using woku to collect feedback, they noticed that the agents rated these changes positively. As a result, not only did overall satisfaction improve, but agent engagement during trainings increased significantly.

The Future of Customer Experience*

In a business landscape where 89% of companies compete based on CX, the difference will lie in who can most effectively understand and respond to changing customer needs. Tools like woku, which allow for a deeper and more nuanced understanding of the customer's voice, will be critical to creating truly exceptional experiences that not only meet, but exceed customer expectations.

By taking a customer-centric approach, backed by technology, companies can transform the customer experience from a simple strategy to a powerful engine of growth and loyalty.

References

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• McKinsey & Company. (2016). The CEO guide to customer experience. Retrieved from https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-ceo-guide-to-customer-experience
• PWC. (2018). Experience is everything: Here's how to get it right. Retrieved from https://www.pwc.com/us/en/advisory-services/publications/consumer-intelligence-series/pwc-consumer-intelligence-series-customer-experience.pdf
• Salesforce. (2020). What are customer expectations, and how have they changed? Retrieved from https://www.salesforce.com/uk/resources/articles/customer-expectations/
• Zendesk. (2024). Customer lifetime value (CLV): What it is + how to calculate it. Retrieved from https://www.zendesk.com/blog/customer-service-and-lifetime-customer-value/
• Zippia. (2023). 25 must-know customer experience statistics [2023]: The benefits of a positive customer experience. Retrieved from https://www.zippia.com/advice/customer-experience-statistics