A joint study has found that businesses should focus on customer experience strategies to generate a healthy 3-1 return on investment.
The study, conducted by Sitecore and Avanade, interviewed 880 decision makers across a range of service sectors in Australia, Singapore, The United States, Canada, The United Kingdom and Germany.
The study analysed adoption, benefits and challenges of customer experience strategies, as well as the important cultivation of long-term business-customer relationships.
Of these 880 respondents, 65% believe there will be more opportunities to improve their profitability if they invested more time in the lifetime value of customer relationships. In Australia, the number rose to 71%.
96% of global respondents have a customer experience strategy in place or are developing one, while 92% believe it is one of their top three priorities.
There were three main reasons behind customer experience strategy adoption: two thirds mentioned competition and 60% of Australian respondents and 52% of global respondents mentioned customer feedback. 46% of Australian respondents believe operational costs are also a key driver.
Australian firms felt that barriers to effective customer experience delivery include outdated services and systems (48%), a lack of internal skills (49%), and an an inability to use multiple channels for a seamless experience (52%).
“Today’s digital customer has higher expectations than ever. In an increasingly hyper-connected world, brands need to challenge traditional business models and consider what can be done differently to attract, win and retain these empowered customers,” says Sarah Adam-Gedge, Avanade Australia managing director.
“Whether increasing engagement with fans like our client Williams Martini Racing or reimaging an online brand experience like Treasury Wine Estates, innovative organisations recognise that digital transformation is essential to effectively meet and exceed the expectations of customers at every touch point, ensuring sustained revenue growth and competitive advantage,” Adam-Gedge concludes.