Frustrated consumers would pay more for CX that exceeds expectations

by | Jan 7, 2020 | Marketing, Public Relations

Consumers who had a frustrating shopping experience are three times more likely than satisfied consumers to not buy from the retailer or brand again, but companies that consistently exceed customer expectations could significantly increase revenues by charging a premium for the experience, according to new research from Accenture.

Survey respondents were deemed to be frustrated if they said that their most recent shopping (i.e., browsing and/or purchasing) experience didn’t meet their expectations and/or if they found any aspect of the shopping experience frustrating. Of the 20,736 respondents, 8,757 (or 42 percent) fell into the “frustrated” bucket.

How costly is a frustrating experience?

A key finding: Nearly half (47 percent) of frustrated respondents said they would avoid doing business with the retailer or consumer goods brand—showing that a frustrating experience can significantly damage brand loyalty.

At the same time, however, the same number (47 percent) of all consumers said they would be willing to pay more for an experience that exceeds their expectations every time, with frustrated customers almost twice as likely as satisfied consumers to say they’d be willing to pay more for such an experience.

“Despite digital technologies fueling an explosion in opportunities to engage and interact with consumers throughout their browsing and shopping experience, many retailers and brands still struggle to deliver a seamless experience across the integrated marketplace,” said Laura Gurski, senior managing director and head of Accenture’s Consumer Goods and Services practice, in a news release. “Meeting or exceeding expectations calls for a complete rethink, all the way from developing new concepts through manufacturing to the store shelf and beyond. And with so many consumers willing to pay more for an experience that exceeds expectations, there’s a potential pot of gold for those that get it right.”

The research highlights some significant variations between geographies

For instance, respondents in China were the most likely to say that they’re willing to pay more for an experience that exceeds their expectations, with 81% of them indicating such willingness, while those in the U.S. and U.K. were the least likely to say they’d pay more for such an experience (31 percent and 28 percent, respectively).

Perhaps more surprising, frustrated consumers overall were far more likely than satisfied consumers to say they’d be willing to pay more for such an experience (62 percent vs. 36 percent, respectively). The gap was greatest in Germany (63 percent vs. 27 percent, respectively) and Italy (61 percent vs. 33 percent, respectively).

“We are in a day and age when loyalty needs to be rethought and rewarded with fresh tactics,” said Jill Standish, senior managing director and head of Accenture’s Retail practice, in the release. “By replacing traditional points-based programs with responsible, mobile-enabled, customer-focused concepts retailers and consumer goods brands can strike a new kind of value bargain with these customers: a hyper-convenient personalized digital experience in return for new insights into consumer preferences and behavior. If they can translate this level of data and analytics sophistication into a human-centric form the whole workforce can get behind, they can orient their entire businesses around the consumers with the greatest lifetime potential.”

The research is based on an online survey of 20,736 consumers in 19 countries: Brazil, China, Denmark, France, Finland, Germany, Iceland, India, Ireland, Italy, Japan, Norway, Singapore, South Africa, Spain, Sweden, the Netherlands, the U.K. and the U.S. The survey, conducted by Coleman Parkes Research Ltd on behalf of Accenture, was fielded in January and February 2019.

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Richard Carufel

Richard Carufel is editor of Bulldog Reporter and the Daily ’Dog, one of the web’s leading sources of PR and marketing communications news and opinions. He has been reporting on the PR and communications industry for over 12 years, and has interviewed hundreds of journalists and PR industry leaders. Reach him at richardc@bulldogreporter.com; @BulldogReporter

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