2020 - Customer Experience to overtake Price and Product.

Customer experience is central to the success of small, independent brands as well as larger establishments. But how do we see this further changing in 2020 and will this have an effect on the cost of certain products? Let's find out!

Why is customer experience so relevant?

It has become increasingly apparent over recent years that the customer experience is one of the most important aspects to consider when designing a brand or a concept for a new consumer product, something that I noticed quickly when I was developing the concept behind Kolibri.

Why is it so important I hear you ask? Customer experience is the very first time your customers get a perception of your brand and an understanding of how that company intends to treat them. The concept behind a brand and a product will become apparent to a consumer very quickly, and the option of customisation will show them that as a buyer, their options have been considered.

For consumers to like your brand, and inevitably want to choose it over your competitors, you need to make them like you, and what you stand for. The perceptions they have of your brand will build lasting memories and loyalty, so in other words, you need to win them over with personalisation.

Ship Early describes this journey in a little more detail: “In order for your customers to like you, you have to get to know them and their preferences to deliver personalised experiences across the entire customer journey to entice their loyalty. It doesn’t matter what kind of business you’re in – improving the experience for your customers is the key to increasing retention, satisfaction, revenue, and lowering customer acquisition costs.”

“Customers no longer base their loyalty on price or product. Instead, they stay loyal to companies due to the experience they receive. If you cannot keep up with their increasing demands, your customers will leave you. In fact, all we hear these days is how important providing the best customer experience is.”

The failing importance of cost

As we see this popularity in customisation and the customer experience grow, we are seeing a significant decrease in previously crucially essential factors and a shift in patterns. Many consumers no longer stay loyal to a product or service based on their loyalty to price; they see far more benefit in staying loyal to the experience they receive.

Super Office recently released a report that outlined where revenue growth is coming from, with the surprising disappearance of cost:

“A good customer experience means your customers spend more:

• 86% of buyers are willing to pay more for a great customer experience
• 73% of buyers point to customer experience as an important factor in purchasing decisions
• 65% of buyers find a positive experience with a brand to be more influential than great advertising.”

“A Walker study found that by the year 2020, customer experience will overtake price and product as the key brand differentiator.”

It has become more prevalent than ever that the importance of cost to consumers is dwindling and that the customer experience is more about building relationships with your potential customers. The demonstration that you understand your customer’s preferences has shown that they are more likely to do business with you, no matter what the price. Customers pay for a premium service, a service that makes them feel like the centre of attention and offers them everything they need.

As the statistics state, 86% of buyers are willing to pay more for a top-notch customer service experience, and more than 89% of businesses are soon expected to compete solely on their customer experience journey. With these figures in mind, I am not surprised that more and more outlets are re-thinking their concepts and making changes to fit the niche.

“Customer experience is your customers’ perception of how your company treats them. These perceptions affect their behaviours and build memories and feelings to drive their loyalty. In other words: if they like you and continue to like you, they are going to do business with you and recommend you to the others. In doing so, they will spend more.” Says Super Office.

With these statistics in mind, I see the focus on customer behaviours, and experiences continue to grow and the overall importance of the price tag fall. Customers are going to become less focused on the premium price they would have once paid and more interested in the premium product and focused concept behind it. The consumer journey is ever-changing and something that I am continually having to adapt with Kolibri and one that I see an exciting future in.

About the author:

Kamila is a bestselling author of  “Bespoke. How to radically grow your bar and restaurant business through personalisation”, and passionate trend-spotter for the UK Eating Out market with thousands of followers on her widely popular blog www.Bespoke.World

With a decade of hands-on experience collaborating with hospitality influencers and insight experts and background in setting strategies for leading brands, Kamila has become the industry champion for truly bespoke and guest-centric experiences.