Change in Customer Behavior Based on the Customer Experience
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Kinesis CEM conducted a survey revealing how customer experiences directly influence purchasing behavior, with positive interactions leading to increased purchases and negative experiences prompting customers to share feedback. About 90% of participants indicated that social media or word-of-mouth reviews significantly affected their purchase decisions. The study highlights the growing importance of customer reviews and social media in shaping brand reputation and consumer trust.
Change in Customer Behavior Based on the Customer Experience
- 1. Kinesis CEM, LLC Changes in Purchase Behavior Based on the Customer Experience https://blog.kinesis-cem.com/2014/11/20/changes-in-purchase-behavior-based-on-customer-experience-part-1/ https://blog.kinesis-cem.com/2014/11/24/changes-in-word-of-mouth-advertising-based-on-the-customer-experience-part-2/ Eric Larse is co-founder of Seattle-based Kinesis, which helps companies plan and execute their customer experience strategies. Mr. Larse can be reached at elarse@kinesis-cem.com. http://www.kinesis-cem.com kinesis-cem.com 206.285.2900 info@kinesis-cem.com Changes in Purchase Behavior Based on the Customer Experience
- 2. Every time a company and a customer interact, the customer learns something about the company, and adjusts their behavior based on what they learn. Proposition:
- 3. Kinesis conducted a survey of 500 consumers asking them to recall an experience with any provider that they found to be particularly positive or negative, and determined how these customer experiences influenced customer behavior. Research
- 4. Causes of Positive Experiences 55% 60% 70% 72% 0% 20% 40% 60% 80% Outcome Successful/ Problem Resolved/ Expectations Met Efficiency of Service/ Not Passed Around to Multiple People Pleasantness of Personnel Speed of Service/ Problem Resolution
- 5. Causes of Negative Experiences 49% 71% 63% 69% 0% 20% 40% 60% 80% Outcome Successful/ Problem Resolved/ Expectations Met Efficiency of Service/ Not Passed Around to Multiple People Pleasantness of Personnel Speed of Service/ Problem Resolution
- 6. How Does Behavior Change as a Result of the Customer Experience? The Question:
- 7. Changes in Behavior Based on Positive Experiences 14% 32% 36% 54% 0% 20% 40% 60% 80% No Change Considered change in purchase behavior Told others (Positive or negative) Change in purchase behavior (Buy more or less)
- 8. Changes in Behavior Based on Negative Experiences 5% 38% 43% 57% 0% 20% 40% 60% 80% No Change Considered change in purchase behavior Told others (Positive or negative) Change in purchase behavior (Buy more or less)
- 9. 36% Told Others Word of Mouth as a Result of Positive Experiences 20% 28% 42% 69% 0% 20% 40% 60% 80% Online Reviews Online Social Media Coworkers (Excluding Online or Social Media) Friend or family (Excluding Online or Social Media)
- 10. Word of Mouth as a Result of Negative Experiences 33% 47% 54% 80% 0% 20% 40% 60% 80% Online Reviews Online Social Media Coworkers (Excluding Online or Social Media) Friend or family (Excluding Online or Social Media) 43% Told Others
- 11. Customers are 1.7 times more likely to share negative experiences over positive via online mediums. Customers More Likely to Share Negative Experiences Online
- 12. Approximately 90% of respondents said their purchase decisions were influenced positively (93%) or negatively (85%) by social media or word of mouth reviews. Word of Mouth Counts
- 13. With customer trust at an all time low, and social media providing a far reaching medium of person-to-person communication, positive word of mouth is becoming far more important in terms of defining the brand. Social Media is THE Media