10 Stats That Confirm User Experience Matters Just as Much as Price Online
Did you know that, in 2020, customer experience has overtaken both product and price considerations as the key brand differentiator?
Now more than ever is the moment for you to prioritize user experience improvement through digital experience optimization. Better accessibility and usability for your customers may spell the difference between surviving and losing out to more savvy competitors. Below are 10 well-discussed facts to support this statement.
1. Approximately 70% of enterprise CEOs accept user experience as a competitive differentiator
On its own, the declaration above clearly reflects how user experience has steadily become a contemporary business driver – but there’s more to it.
The percentage of this statistic has risen by more than 15% from 2018 to 2019. In the same period, there was a more than 25% jump in the percentage of enterprises that include a Chief Experience Officer or VP of Design among its employees. That points to decisions made and actions taken to go along with a widely agreed upon opinion.
2. Every $1 invested in user experience brings back an average of $100
In other words: If you sink funds into user experience, you can reasonably expect a 9,900% ROI.
These days, a strong digital marketing strategy must shift focus from production to customer experience, if it hasn’t already.
Let’s talk in terms of conversions. Well-designed websites with great user interfaces could boost conversion rates by 200%. While that’s already a tremendous rise in percentage, better overall user experience design could lead to twice as much improvement: a conversion rate increase of 400%.
3. Slow-loading websites cause a revenue loss of more than $2 billion each year
This is a critical statistic for the ecommerce sector. The cost of poor user experience — and, accordingly, the importance of investing in its improvement – speaks for itself.
The retail industry is bleeding out literal billions annually, in part due to companies focusing on digital experience optimization only after losses have been noted.
What happens when you improve the user experience of your websites? Reports show that if pages load even one-second faster, the change may result in a 7% increase in conversions.
4. Only 1% of users are satisfied by their interactions with ecommerce websites
Does your website meet or exceed the expectations of your customers? The statistic above illustrates an excellent opportunity for growth, whatever your answer may be.
However, it’s not enough to have a singular well-managed online presence in 2020. If your website looks good on a desktop computer, that’s only half the battle. 50% of all web traffic worldwide is generated through mobile devices.
Most people look up products and make purchase decisions using their smartphones, which means that prospective customers will be directed to your online home.
52% of consumers are less likely to engage with a company if they have a bad mobile experience, whether or not it’s their first contact with you. Almost 75% of them will not come back to your website.
5. Roughly one in three consumers will stop buying from a preferred brand after a single bad experience
Customer experiences can make or break your company.
While great customer service has the power to attract and retain loyal customers, 32% of consumers say that just one negative interaction with a brand is enough for them to stop buying a product they love. In the U.S., almost 90% will switch to a competitor.
6. Around 62% of consumers consider previous experiences when deciding to make a purchase
For the most part, past experiences inform future interactions – which is why more and more companies are taking a more customer-centric approach to digital marketing and other business-related efforts.
How customers feel about the products and services you provide can have a chilling effect on your bottom line. 44% of consumers that have a negative experience with online shopping will tell their friends about it. If not nipped at the bud, one bad interaction can spiral into a bad company reputation.
On top of the statistic above, an Adobe study confirms that repeat customers can be responsible for up to 40% of a company’s revenue. This greatly supports the idea of investing in user experience versus a pure focus on conversion rate optimization.
7. People are 5 times more likely to abandon a task if a website isn’t optimized for mobile
A task could be anything from learning more about your company to signing up for your newsletter or completing a purchase. When customers feel like you don’t care about their needs and wants, it shows in their behavior.
Nearly half of mobile users get annoyed when a website is poorly optimized and doesn’t display well on their devices. 79% of these people who are underwhelmed or frustrated by your website will search for what they need elsewhere online.
These numbers aren’t surprising. 73% of customer experience professionals admit that they are unable to easily maintain seamless and optimized digital experiences across different online touchpoints. The common problem seems to be difficulty in collecting and uniting data from different channels – a process in which Decibel excels.
8. With better customer experience, 86% of consumers say they would pay more for a product or service
What makes the customer experience better? One of the best tools in digital marketing is by mapping customer journeys to understand consumer behavior. 88% of professionals say that employing this tactic had a positive impact on their ability to use personalization in creating an elevated customer experience.
A personal approach can dramatically raise conversion rates, too. For example, a personalized call to action will convert more than 200% better than a general one.
9. Almost 50% of consumers have made impulse purchases after taking part in more personalized customer experience
Digital experience optimization through better personalization influences potential and existing customers alike. 49% of shoppers targeted by personalized recommendations could make an impulse buy, while 44% can become repeat buyers.
On the other hand, more than 70% of consumers report feeling frustrated by impersonal customer experiences.
10. Highly-engaged customers are six times more likely to buy a new product or service from a brand they love
Repeat buyers or customers are often the most highly-engaged ones – people that read your newsletters and blog posts, take part in promotions and avail of discounts, and the like. You will always want to cultivate more relationships of this kind. Improving customer retention by even just 5 percent can lead to a profit increase of at least 25 percent.
Highly-engaged customers are not only six times more likely to try new offerings from their preferred brands, but also four times more likely to refer these brands to others. They may stick to their favorite brands even when competitors offer similar products at a lower price.
These customers also buy products up to 90% more often and can spend up to 60% more with each purchase.
What Can Decibel Do to Help Improve Customer Experience and Conversion Rates?
How do you measure the quality of your own site’s digital experiences? With Decibel’s AI, it will automatically score those experiences for you.
With Decibel’s digital experience analytics collecting, analyzing, and scoring billions of user experience datapoints, you can truly move the needle on engagements, conversions, and loyalty. From modern versions of standby tools like heatmaps, session replay and form analytics to the Digital Experience Score (DXS) capable of quantifying user experiences from 1-10 across your site, your digital optimization efforts will be as well informed as anyone’s.
Want to learn why Decibel is trusted and used by enterprise giants like Lego, British Airways, Fidelity and more? Download Forrester’s Total Economic Impact (TEI) Study to find out how our solution can deliver millions’ worth of benefits to your company in just three months.