Brands Investing In Customer Experience Management Will See 11% Increase In Revenue
Investing in your customer experience strategy has a significant financial impact on businesses, says a new study released by Avanade and Sitecore. The study conducted with 880 decision makers in six countries, including Australia, found that for every dollar invested in improving the customer experience, businesses generated three dollars in return. In addition, they expect to see an 11 per cent increase in revenue in the next 12 months.
The global research study focused on businesses’ customer experience strategy, its adoption, benefits, challenges as well as the importance of building a long-term relationship with customers.
In fact, 65 per cent of global respondents and 71 per cent of Australian respondents expect further opportunities to improve profitability when they focus on improving the overall lifetime value of customers.
As expected, an overwhelming 96 per cent of both global and Australian respondents surveyed have or are developing a customer experience strategy. Also, 92 per cent of those with a strategy in place, both in Australia and overseas, report that the customer experience strategy is one of their top three priorities.
The research revealed that competition and customer feedback were the main reasons behind prioritising a customer experience strategy. A full two-thirds of respondents said that competition made their organisation realise the need to prioritise customer experience, while 52 per cent of global respondents and 60 per cent of Australian respondents reported customer feedback as the driver.
Interestingly, 46 per cent of Australian respondents cited increased operational costs as a key driver for prioritising customer experience compared to 14 per cent in Canada, 24 per cent in the UK, 13 per cent in Germany, 31 per cent in the US, and 42 per cent in Singapore.
There are still several obstacles preventing businesses from delivering an effective customer experience. 48 per cent of Australian respondents cited outdated services and systems Compared to 44 per cent globally), while 49 per cent cited a lack of internal skills (compared to 41 per cent globally) , and more than half (52 per cent compared to 39 per cent) cited an inability to provide a seamless experience across different channels, according to the research.
“For Australian brands to truly succeed, they need to move beyond standalone marketing tools and shift marketing to their customers in context across every brand touchpoint no matter whether they’re targeting millennials or retirees,” said Scott Anderson, chief marketing officer, Sitecore.
“Companies need to understand that customer experiences are now built around knowing what each individual is trying to achieve at that very moment in time and create the right brand experience around those insights.
“In fact, by prioritising a customer experience strategy, almost half of those Australians surveyed have experienced increased customer loyalty over the past 12 months while more than one in three have increased their revenue, 23 per cent have increased their profitability and 34 per cent have increased both the retention and acquisition of customers.”
“Today’s digital customer has higher expectations than ever,” said Avanade Australia managing director Sarah Adam-Gedge.
“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.
“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.”
Latest News
DMARGE Founder Unveils Creator-Led Social Media Agency Feedstar
New creator-led social media agency Feedstar to be aimed directly at Gen Zs. Well, they'd hardly want print, would they?
TV Ratings (02/05/2024): A total of 1,753,000 Aussies Witness Port Adelaide’s Defeat
Seven's AFL numbers almost double that of the NRL last night. The NRL still easily winning for ruptured ACLs.
Hotglue Cashes In With La Trobe Financial Digital Media Account
Hotglue staffers learning their cashflows from their collaterals today after nabbing La Trobe Financial's digital media.
M&C Saatchi’s Sydney Creative Lead Exits
B&T's stopping short of calling it a revolving door at M&C at the present, but there's definitely heat on the hinges.
Taylor Swift’s Music Re-Enters TikTok As Universal Pens Landmark Deal
Yes, B&T may have spent 152 hours failing to get Taylor Swift tickets, but, as you'll read here, it's all behind us now.
HAVAS Red launches inaugural Influencer White Paper
Havas Red has debuted its first influencer white paper. Unless you print it out in colour, of course.
Two Sides Global Campaign Reports Increasing Greenwashing As Organisations Focus On Sustainability
New report confirms greenwashing's on the rise. Apparently Mars' 'work, rest & play' claims also under investigation.
Aruga Launches New HQ & Changed Ownership Structure
PR agency Aruga proves Brisbane is 'so hot right now'. So hot in fact, Adelaide's had to go on anti-anxiety meds.
Delicious & American Express Partner To Launch Month Out 2024 In Sydney
Cost of living got you eating noodles prepared in the two-minute style? Why not live vicariously through this.
Aussie Ad Market Continues Decline In March
The belt-tightening in adland shows signs of a turnaround soon. Bar the belt-loosening at the all-you-can-eat buffet.
VMA Focuses On Skills And Training For Members
If there was a post-COVID hangover (bar the anti-vax ranters) it was the rise in skills shortages. Here's another one.
Nearly 90% Of Consumers Want Transparency About AI Images, Finds Getty Images Report
Study finds consumers want transparency around AI images. Couldn't care less about photoshopped magazine covers.
The National Breast Cancer Foundation Partners With VML To Boost Funds
Anyone else feel we've exhausted the office morning tea for cancer? B&T proposes the office moonshine still instead.
Perry ‘Pez’ Lazaris Named New National Hit Network Announcer
Why is it mandatory for the media to only publish the nicknames of people in radio & underworld crime figures?
Before Adland: Garry Dawson’s Journey From Teacher To Marketer
Here, the Hopeful Monsters marketer talks his shift from the classroom to the room wherever marketers congregate.
Scott Cam Urges Tradies To Prioritise Sun Protection
The Block host promoting sun protection to tradies. Also, don't try getting into the RSL after 6pm wearing high viz.
PubMatic Study: Advertising On Retail Media Is 50% More Effective Than Social Media
New study finds retail media 50% more effective than social. B&T says two-for-one Tim Tams trumps the lot.
From MOWING to life GROWING: Jim Penman launches ‘Life Coaching’ services
Can't decide on getting the hedges trimmed or finding a deeper meaning to life? You're in luck with this new venture.
Budweiser Brazil Turns Songs That Name Drop The Iconic Brand Into Spotify Ads
It's strange that Budweiser never found a market among beer-swilling Aussies. Then again, neither did the fluffy duck.
Effie Worldwide Strengthens Board With 6 New Members
B&T hopes everyone's wearing their Maseur sandals at the Effies, as it's standing room only at the next board meeting.
Special Enlist A Penguin Named Nigel In Latest Energy Campaign For Contact
Special unveils Nigel the penguin in work for energy provider Contact. Apparently Percy the peacock was booked.
Anya Taylor-Joy, Chris Hemsworth & George Miller Ignite Sydney For Epic Mad Max Launch
The Mad Max film franchise is Australia's cinematic gift to the world. That & Chris Hemsworth's near perfect cheekbones.
IAS Launches First-To-Market Integration With Roblox To Provide 3D Immersive Measurement
Always thought you could do with better 3D immersive measurement? Happy days are ahead here.
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.
Bumble Reveals New Brand Identity To Usher In New Era Of Dating
It's ironic that all the dating apps market themselves as having no weirdos, freaks or mummy's boys like their rivals.