What is the Cost of Bad Customer Experience?

Today’s marketplace puts a huge amount of power directly in the hands of the consumer. When a single detail of the customer experience (CX) doesn’t live up to expectations, the fallout can be costly.

CX Defines Your Digital Presence

Customer experience (CX) is defined as the experience of all the interactions individuals have with your organization. This includes their in-person buying behavior, their digital journey, their customer service interactions, and every other interaction they have with your brand anywhere out in the world.

CX isn’t just about customers’ past experiences. CX influences the future of your company. Many businesses are struggling to maintain and enhance customer connections as a global pandemic reshapes the marketplace.

Forrester Research calls CX, “the through-line that keeps brand purpose and customer relationships stable amid unprecedented upheaval.” By placing a high priority on CX, companies can avoid common pitfalls that ultimately put them out of business.

“CX becomes crucial for brands to survive, for them to avoid disintermediation, irrelevancy, blandness, and/or cluelessness about customer sentiment.” - Forrester Research, The Future of CX

Negativity Spreads Quickly

Negative topics about your company that trend in online reviews or other forums are obviously frustrating. They are also a valuable reflection of your CX. Poor reviews indicate how your company is handling problems, whether issues are truly being resolved, and how your customers are feeling about your company.

Your Online Responses are Part of Your CX

Here’s something important to keep in mind: Your customers don’t just want to share their opinions - they want you to respond. Your company’s online reviews are an opportunity to have positive two-way conversations that improve your CX.

Bad customer experiences are far more likely to be shared in reviews or on social media than good ones. Why? Because they elicit sympathy. Bad reviews are more likely to garner attention from friends, family, peers, and even the business itself.

CX, Loyalty, and Personalization

Customer loyalty is based on two overarching factors: Customers having good experiences and your company’s ability to prevent the competition from gaining a foothold.

When your customers form a positive early impression of your company, it encourages a long period of positive buying behavior.

  • 24% of customers who get a good first impression of your business are likely to remain loyal customers for up to two years.
  • 87% of customers will tell others about a good buying experience.
  • 95% of customers will tell others about a bad buying experience.

Personalization also plays an important role in maintaining customer loyalty. Today’s consumers prefer brand experiences that are individually tailored to their needs. When customers feel personally valued, they’re much more likely to stick around.

87% of Americans are willing to have their online activity tracked in exchange for more personalized rewards and brand experiences.

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