Fair, false, national or international, economy is a word that links them all. But out of all of them, the more interesting kind out there is the Expectation Economy.
It’s more than just a passing concept, it’s become an expectation among the majority of consumers, and it’s a vital one for businesses to keep in mind.
Customers and brands want to be part of a mutually-beneficial relationship; brands want loyal customers, while customers want a great experience.
Not only that, 88% of customers want an experience that exceeds expectations, but also has the potential to get better over time.
Companies agree, 82% of businesses believe that retention is far more effective compared to new acquisitions.
So here are some facts to keep in mind when thinking about your business and the Expectation Economy.
Raise Your Expectations! Facts to Remember about Expectation Economy
The Expectation Economy is often called the ‘Amazon Effect’ due to the company’s role in enhancing the customer experience.
As a result, businesses should consider the stats behind this emerging force.
71% of customers felt frustration through the lack of personalization from their shopping experiences.
This frustration dovetails with the 56% of consumers that would stop using a brand if they have one bad experience, and a lack of personalization plays into this.
90% of customers believe that having a best in class experiences raise expectations of the same from similar businesses.
The Expectation Economy has effectively re-ignited competitiveness among businesses, especially eCommerce businesses which rely a lot more on incentives to bring consumers back.
So the pressure is on, looking at this statistic, among others. A further 83% argue that these experiences raise expectations for all businesses, regardless of their industry.
54% of customers want personalized discounts within the first 24 hours of engaging with a brand
One of the trump cards that eCommerce businesses have up their [virtual] sleeves is discounts and lines of almost direct communication.
Digital retailers that can interact with consumers using all the tools at their disposal will be the net winners here.
56% of consumers stay loyal to brands that ‘get them’ on a personal level
It costs five times more for a business to acquire a new customer than it does to keep an existing one. So there’s serious value to retaining the loyal users you have.
This stat is about enriching the user experience as much as it is about providing the best product. Knowing your customers in as intricate detail as possible is the name of the game for an eCommerce business.
How eCommerce businesses can master this is a matter of research and introspection.
There’s a 60-70% probability that a business sells to an existing customer instead of a new one
Not only is it more expensive to acquire a new customer, but your business is also less likely to sell to them compared to existing ones.
Keep this in mind, as it’s all the more reason for your brand to resonate with loyal customers. Because while 56% of customers like when businesses ‘get’ them, far more switch off when they don’t.
Best way to engage with existing customers? Surprise deals and offers.
61% of customers readily engage with brands and eCommerce
businesses that have surprise deals or offers they’ve received through email or social media.
If we bear in mind that consumers have an in-built expectation for direct engagement via one of these channels: surprise deals and offers have a profound effect on converting a user from a passive follower to an active buyer.
What we can see from the Expectation Economy is that businesses are in a new kind of competition with one another, on and offline.
But with a higher price tag associated with acquiring new members, the business strategy needs to be geared towards rewarding loyalty and communicating with existing customers as directly and fluently as possible.
The days of just selling are long gone, and the onus is on businesses to really understand the people they want to sell to.
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