Accurate insight is now the top priority for businesses as maximised customer experience becomes critical to growth. But new research shows two out of three CEOs readily admit current approaches are ineffective and don’t offer a clear view of customers – resulting in missed opportunities.
Boardrooms across Europe unanimously agree that accurate insight across the customer lifecycle is critical to their growth, with the vast majority (81%) firmly positioning it as their top business priority for the year ahead.
But more than two out of three readily admits their current approach to customer experience is ineffective, they’re failing to connect the dots, or get a clear view of consumers. As a result, they face flat-lining or declining revenues simply because they are missing out on opportunities to better serve customers from start to finish.
New research from Experian highlights just how vital accurate customer insight is as it emerged businesses across the globe are now reliant on a combination of data, analytics and technology to ensure they consistently offer the very best customer experience – every time.
A recent commissioned study conducted by Forrester Consulting on behalf of Experian, gauges opinion among nearly 400 CEOs and senior business leaders working right across Europe, the Middle East, and Africa. It reveals the true impact of poor customer experience and customer management on commercial revenue.
- Two thirds of all businesses now admit they fail to get a consistent single view of their customers’ expectations, habits, or preferences across all channels – with current approaches regarded as ineffective.
- With investment concentrated on consumer acquisition and collections – the beginning and the end of the life cycle – more profitable and active customer experience stages are often being overlooked, or missed completely.
- As a result, more than a third of businesses are also now reporting flat-lining or declining revenues as they miss out on opportunities to better serve customers. At the same time, around two in five (40%) businesses report rising customer acquisition costs and rising cost to serve.
- Four out of five business leaders now see improving customer experience as the key to unlocking more value. But many admit they still have siloed approaches to analytics, data, insight – and continue to be constrained by traditional ways of working.
The research also highlighted how many CEOs are aware of the pressing need to get to grips with consistently delivering a fast, seamless and reliable customer experience amid predictions traditional business models could be defunct within the next five years as they lose ground to digital-savvy competitors.
Charles Butterworth, Managing Director, Experian, EMEA, says: “Many businesses acknowledge their current approach to customer management is flawed as they continue to retain a siloed approach to analytics, data and insight. With investment often concentrated on consumer acquisition or collections – the beginning and the end of the lifecycle – opportunities are lost as the more lucrative and active customer experience stages are overlooked or completely missed.
“But it’s clear this is not a unique challenge to any one sector – we’re seeing it repeated right across the globe. Many clients are turning to us to unlock more value from their businesses by helping them get to grips with a critical combination of data, analytics and technology, to ensure they always offer the very best customer experience first time – and every time.”
The Forrester report says: “Over 50 per cent of organisations have seen a decrease in profitability per customer. To reverse this trend, organizations are aligning internal processes around customer metrics (40%) and are using customer journey mapping (38%). Combining this knowledge with more sophisticated analytics will allow organisations to maximize the value from their customers.
“Traditional business models are under threat. Digitisation has transformed today’s society, giving enterprises a unique opportunity to collect and process vast amounts of data that they can use to win, serve, and retain customers. Legacy systems do not cut it in today’s world. Organisations need to take a smarter approach and overcome internal barriers to better serve their customers and get products and services to market faster.”
Source: Experian Press Release