New research from Ventrica has revealed the revenue benefits for brands that invest in providing emotive customer experiences (CX) that consumers want.
The company surveyed over 2,000 UK consumers and found that over the last 12 months, only 4 per cent of positive experiences were delivered by AI and only 18 per cent were a combination of AI and human interaction. Furthermore, only just over half (53 percent) found chatbots to be a successful means of resolving enquiries, significantly lower than calls (87 percent).
This is leaving UK brands at risk of losing out on potential revenue opportunities, with the survey finding consumers would be willing to spend up to £100 more on a brand in the future, following a positive experience. This figure doubles among 18 to 34-year-olds, with the median additional spend being between £100 and £199. Key findings from the research include:
•87 percent of luxury shoppers would make repeat purchases after a positive customer service experience.
•39 percent would make multiple purchases (compared to just 20 percent across other sectors) after a positive experience.
•A positive customer experience results in an average £100 additional spend with the brand, per enquiry.
•However, this sector also reported the highest customer churn rates. Poor customer experiences could lead to the loss of 33 percent of customers.
•52 percent of Luxury Retail customer service interactions were reported as negative –the highest of all sectors.
The survey shows that combining AI with human customer service has the most potential for a positive impact for Luxury Retailers. While just 23.4 percent of positive customer experiences were delivered by a blend of AI and human support across UK consumer sectors, this number jumps to 39 percent in Luxury Retail.
Iain Banks, CEO of Ventrica, said, “Rather than seeing customer service as just a cost centre, brands should recognise it as a powerful driver of revenue and loyalty. Our research highlights that when customers receive fast, empathetic, and emotionally engaging support, they develop a stronger connection to the brand, leading to increased loyalty and higher spending."
