Secure Your Allocation of the $3.8 Trillion Sum
Secure Your Allocation of the $3.8 Trillion Sum
The significance of client experience (CX) to your business is substantial. As per Qualtrics' 2025 Consumer Trends Report, poor CX could lead to a loss of $3.8 trillion in sales. While this implies a substantial financial loss for companies with subpar CX, those excelling in this area might potentially reap the benefits of this lost revenue together with the customers.
This topic appears to be a recurring theme for me, as I wrote an analogous post discussing the trillions of dollars at stake due to inadequate customer service earlier this year. In this article, I wish to explore the matter from a distinct perspective. As we welcome the new year, let's make it one of our resolutions or objectives:
Let's aim to capture our portion of the $3.8 trillion being wasted due to substandard customer experience by other companies.
The Qualtrics report contained several intriguing insights that help us comprehend the risks and possibilities tied to customer satisfaction ratings. Below are three such findings along with my perspective:
Servicing Wins Over Pricing
Service delivery problems (46%), communication mishaps (45%), and employee interactions (39%) are ranked as the primary customer grievances, surpassing price concerns (37%). Our annual customer service and CX survey (funded by RingCentral) indicates that a favorable experience lessens the relevance of price. Nearly half of U.S. consumers (51%, up from 48% last year) consider service to be more significant than price. Even when customers are concerned about the economy and inflation, half are willing to pay more for an exceptional experience. However, while price won't entirely influence a customer's decision, it definitely becomes less relevant. This implies that a competitive pricing strategy, instead of a lowest pricing strategy, could be worth considering, unless your brand is synonymous with low prices.
Action Steps: Craft an experience that diminishes the significance of price.
Customer Retention at Risk
More than half (53%) of consumers will scale back their spending following a bad customer experience. A negative experience can be costly for your company as more than half of customers tend to spend less with companies that fail to meet their CX requirements and expectations. Furthermore, our research shows that customers may not remain loyal if neglected. The average customer will give you just 2.2 opportunities before moving to a new company or brand. Even loyal customers offer you only 2.5 opportunities. Over time, these numbers have decreased, indicating that customers are less tolerant than in the past. When you factor in the Qualtrics findings with our research, you should question yourself: Can we afford to lose customers if we fail to meet their CX requirements? And can we afford to see the average lifetime value of our customers decrease?
Action Steps: While interacting with a customer, every employee should consider, "Is what I’m doing currently going to motivate the customer to return next time they need our product/service?" In essence, focus on the next time, every time.
Customers Also Report Their Biggest CX Grievances are Service Delivery Issues
Customers are dissatisfied with service 46% of the time, according to Qualtrics. In addition, communication problems (45%) and employee interactions (39%), which play a crucial role in CX, exacerbate the dissatisfaction. Price (37%), product quality (35%) and post-sales support (21%) remain concerns but are not as important and serve as potential red flags for brands. The message is that the service experience is more important than price and product quality. Companies that value their customers recognize that even with superior product quality, neglecting the customer can drive them to a competitor, even if it means sacrificing some of that quality. And, if the service is exceptional but the product fails to meet expectations, the same could transpire. Offering a balance of reasonable service standards and product quality can help minimize customer churn.
Action Steps: We understand where the “CX pain points” are. Collaborate with your team to analyze these service opportunities that apply to your organization and evaluate if you have optimized the experience for your customers.
The original Qualtrics' report echoes my findings from the customer service post, both highlighting the substantial $3.8 trillion potential loss due to poor CX.
To capture a part of this wasted revenue, it's crucial to focus on enhancing service delivery, communication, and employee interactions, as revealed in our customer service and CX survey.