By Jana Barrett
Looking at customer experience (CX) and churn in the SaaS environment from a high level, there’s one theme that stands out from the mix: The fact that we live in what’s called a “switching economy.”
The term, coined by economists, describes a current trend impacting switching brands because of dissatisfaction with their experience. It can be a major driver of customer churn—and it’s already creating an incredible economic deficit in the US.
Early reports indicate that more than $1.6 trillion in revenue is up for grabs as “always on” consumers look for brands mastering CX via various channels and touchpoints. What’s more: since 2010, Accenture data shows the switching economy has increased more than 29%—and only 11% of U.S. customers strongly agree that companies are effectively converging their omnichannel experiences.
So, what’s driving the switching economy? And how can businesses win back customer loyalty?
Why Consumers Are Bailing on Brands
Lazy automation and lack of personalization
The rise of automation in customer support in recent years has increased efficiency by leaps and bounds—but for some brands, leaning too heavily on sloppy automation has come at a high cost. When customer interactions are less personalized via low-touch automation, it creates a void between customers and companies.
Data shows that personalized support is the top priority for consumers. When customer support team members aren’t equipped to offer a customized, helpful experience via rich profiles with a 360-degree view of the customer’s data, they often fail to deliver the support experience those shoppers have come to expect.
Higher customer expectations
Speaking of expectations: Consumer expectations in regard to CX have reached an all-time high. Salesforce data shows that a whopping 66% of consumers say they’re likely to switch brands if they feel treated like a number, not an individual. That same data set reiterates the importance of personalization, too: 70% of B2C shoppers say a company’s understanding of their individual needs influences their loyalty, while that number goes up to 82% for B2B buyers.
These increasing customer expectations are likely a side effect, at least in part, of startups who are coming in and sweeping up. Take, for example, e-commerce startup Brandless. Their motto is “Better Everything, All for $3.” From groceries to personal care products, you can buy a range of quality products for a whopping $3 each. Even in a highly saturated market, bold startups can rake up unhappy customers from their more established but immovable competitors.
A desire for seamless omnichannel CX
We also have to consider how shopping has changed. As modern consumers continue to shop anywhere and anytime, seamless omnichannel CX across various devices and touchpoints is a must for SaaS. Some research indicates that it has a make-or-break impact on retention rates, too. Companies with omnichannel customer engagement strategies retained 89% of customers on average, while those without only retained a mere 33%.
How to Reconnect with Omnichannel Support
We know that customers crave (and expect) a meaningful customer experience, so what can we do to address those needs? Omnichannel support is the …read more
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