New York Ag Connection - Brands Underestimate 'Creep' Impact on Customer Experience

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Brands Underestimate 'Creep' Impact on Customer Experience
New York Ag Connection - 02/23/2018

A new study from customer experience (CX) intelligence leader InMoment reveals that, despite CX maturing as an accepted, even foundational business practice, brands still have significant blind spots when it comes to truly understanding their customers.

The 2018 CX Trends Report surveyed more than 1,000 brands and 2,000 consumers in the U.S. to find out where both groups aligned or disconnected on various CX topics. The study found that nearly a third of customers (32 percent) did not have a positive memorable experience with a brand in the past year, despite only 16 percent of brands reporting that they under-delivered.

The report delved into the impact personalization strategies is having on the customer-brand relationship. A whopping 75 percent of consumers reported finding most forms of personalization at least somewhat creepy, with 40 percent of brands admitting to being creepy. And while half of customers say they'd keep shopping with a brand after a creepy experience, 22 percent report they will leave for other brands. Additionally, they'll tell their networks -- one in five will tell friends, while one in 10 will share on social media.

According to Brennan Wilkie, senior vice president of CX strategy at InMoment, these and other findings in the study illustrate that brands still have a lot to learn about customer expectations.

"Whether it's how brands are using personal information or the impact of missed expectations, companies continue to underestimate their customers. Today's consumers are savvy, they want to be included in decisions, they want transparency, and they want real value in exchange for sharing personal information or spending their money. The brands that see the new landscape as an opportunity instead of a burden and focus their efforts on building authentic relationships with customers are seeing massive benefits."

Other key findings revealed in the report include:

- Millennials are misunderstood: Misconceptions regarding the now-largest spending block abound. Millennials are the most sensitive of all age groups regarding their personal information and really value in-person --not just digital -- commerce.

- Memorable experiences are emotional experiences: Forget price and selection -- strong emotions like anger and feeling special are what turn a simple experience into fuel for future behavior.

- Human capital can make or break CX: While 65 percent of customers report that staff interaction highly influenced positive sentiment, 74 percent also say poor staff experiences were the most significant contributor to a bad brand interaction.

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