Customer experience (CX) is a more powerful customer loyalty driver than price-value perception, specifically for banks and retailers, according to new Forrester research that tests the relationship between customers’ perceptions of their experience, their perceptions of price-value, and their loyalty.
For banks, customer experience accounts for 55% of loyalty, and for retailers, CX drives 46.5% of loyalty. When customer experience and price-value are taken together, the percent of loyalty goes up only slightly, to 56% and 47% respectively. “This means companies can’t expect to outperform competition on price while ignoring their customers’ experience,” writes Senior Analyst Maxie Schmidt-Subramanian in her new research. “Instead, they should formulate a CX strategy that describes their target customers’ CX and pricing needs.”
To learn more about this research, including current case studies from organizations such as Bank of America, Wells Fargo, and Marshalls, visit the full research report: Banks And Retailers: You Cannot Price Your Way Out Of Bad Customer Experiences.