The need for CX

One area of a company that has the biggest impact on a company’s growth and success is customer experience. CX has grown in recent years to become a primary driver of growth, customer satisfaction and employee engagement. As the discipline has grown, so too has the number of people working in the field and its importance and credibility.

Global CX technology spending is expected to reach $641 billion in 2022. The incredible growth of CX technology spending shows the huge demand from customers for digital solutions and that companies are willing to invest in future-ready systems. The size of the US CX industry is expected to grow 15% annually from 2021 to 2028.

87% of business leaders tag CX as their top growth engine — the highest of any other growth area. Improving CX is a huge opportunity for growth. 95% of leading organizations cite CX job roles as important to achieving business growth — the highest of any job role. Investing in CX pays off with strong customer relationships, personalized digital solutions and innovative products or services.

Nearly 90% of companies have a CXO or equivalent executive, compared to 65% of companies with a CXO in 2017. 56% of B2C companies have a dedicated CX team, with most formed in the last one to two years. CX is becoming an intentional and proactive part of business strategy with dedicated teams and resources.

The number of brands improving their CX in 2020 was up 13% from 2019, and the number is expected to grow further in 2021. 76% of executives say improving CX is a high or critical priority. Executives see the value of continually improving CX. When leaders are on board, it sets the tone and mindset for the entire organization.

70% of financial companies, 58% of tech companies and 50% of retailers anticipate having a larger budget to invest in CX technology in 2021. The pandemic shook things up for most companies, but CX is still a priority as companies start to rebuild. Of all the ways to increase budget post-COVID, CX is at the top.

Improving CX by one point can lead to more than $1 billion in additional revenue. Few other business areas can lead to such huge growth with such small changes. 36% of top CX companies exceeded their top business goal by a significant margin, compared to only 12% of less customer-focused companies. A customer focus improves all areas of the business.

More than two-thirds of companies that led in customer experience outpaced others in their industries in the second half of 2020. Global C-suite executives rank CX as their greatest avenue for growth. Modern brands are faced with countless growth opportunities, but CX is recognized as the best chance to grow a brand.

Nearly 80% of marketers say improving customer retention is the primary goal of their CX strategy — and 98% have been successful in reaching that. Investing in CX improves long-term customer relationships, which reduces the cost of acquiring new customers.

Companies with strong omnichannel customer experience strategies see 10% year-over-year growth. A strong omnichannel CX strategy leads to a 10% increase in average order value. Investing in CX not only improves customer satisfaction, it also makes customers more valuable. Companies that lead in CX personalization have increased their revenue by up to 15%. Personalization has a strong ROI.

Today, two-thirds of companies compete on customer experience alone (compared to 36 percent in 2010). Low prices, free shipping and lots of choices are no longer differentiators — they’re a given. Brands must stand out by delivering an exceptional customer experience. Of course, everyone knows that better service makes for happy customers. But do happier customers translate to higher profits?

As a matter of fact, they do. Industry leaders in CX have been shown to outstrip the performance of CX stragglers by almost 80 percent. Satisfied customers spend 140 percent more on average and stay with a company five years longer. Happy customers are much less likely to return products or demand a refund. They make fewer calls to customer support, thereby reducing the cost of support staff.

The customer experience industry is made powerful by the people who run it. CX professionals and changemakers are improving their organizations and industries every day as they push for a greater focus on customers and innovative solutions to meet their needs. The industry will continue to increase its power and influence in the coming years and affect every aspect of a company.

TMP’s role

TMP provides white-glove service to its clients with 24×7 omni-channel support for voice, email, chat, messaging, and fulfillment, guaranteeing a unique customer experience. Our support staff and custom IT abilities provide our clients with a fully customizable experience. We believe in putting the customer first!