Reality check

Posted on Oct 17 2017 - 4:30pm by Editorial Content
RATING

New report highlights gap between business perceptions and the customer experience

A new report from Capgemini’s Digital Transformation Institute highlights a positive correlation between investment in digital customer experience initiatives and the satisfaction of customers and their willingness to spend more.

Based on an international survey of more than 3,300 consumers and 450 company executives, The Disconnected Customer: What digital customer experience leaders teach us about reconnecting with customers highlights a gap between how businesses and consumers perceive the quality of their customer experience.

For example, while 74% of businesses describe themselves as customer-centric, only 30% of consumers agree with this perception.

The gap between business and consumer perceptions is narrowest for internet-based services, with just 12 points between the percentage of companies who believe themselves to be customer-centric and the percentage of companies whose consumers believe they are customer-centric (68% vs 56%).

This compares to a 71-point gap for utilities (78% vs 7%) and a 47-point gap for retail (79% vs 32%).

The report shows that many businesses are also over-optimistic about customers’ willingness to recommend their products or services, measured by the Net Promoter Score (NPS). While 90% of businesses believe their NPS has increased by five points in the last three years, only 54% of consumers agree.

Businesses that invest in technology to narrow the gap between their own and their customers’ perceptions can look forward to increased loyalty and business, with 81% of consumers surveyed saying they would increase spend in return for a better experience. Almost one in 10 (9%) say they would increase their spend by more than half.

The digital experience
Capgemini argues that investment to improve the digital experience should be a key area of focus. Its Digital Customer Experience (DCX) Index, which rates business performance across 80 digital experience attributes, shows that the higher the DCX Index score, the greater the willingness of consumers to spend money with and recommend a business.

Analysis shows that for each single point increase in the DCX Index score, consumers would be willing to spend 0.6% more with an organisation and the NPS would go up by nearly five points.

Companies that closely link their business operations with the customer experience enjoy a 14-point NPS advantage over those in which business operations are not connected to the customer experience.

Currently, just 19% of organisations are meeting consumers’ digital experience expectations. Those that aren’t face a number of challenges including the rapidly evolving technology landscape (56%); rising consumer expectations (57%); the difficulty of integrating disparate platforms (38%); poor user interfaces (32%); and a lack of dedicated customer experience budgets (41%) and internal ownership of the digital customer experience (35%).

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www.capgemini.com