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Shoppers are willing to part with data for better customer experiences

Industries are lagging behind in using innovative tech to provide positive customer experiences according to a new report.
Written by Eileen Brown, Contributor

Over half of US consumers (55 percent) claim to have better experiences shopping online than in brick-and-mortar locations (42 percent). And as the holiday season approaches how do companies attract their customers to make those all-important sales?

Miami, FL-based customer experience management company Sitel Group has released its 2018 CX Index Report Index.

The report reveals how the quality of a company's customer experience impacts consumers' loyalty and engagement.

Three quarters (75 percent) of US consumers said that they would stop doing business with a company if they received poor customer support or had a bad experience.

Half of consumers (50 percent) say they have stopped doing business with a brand in the past year due to a negative customer experience.

Consumers are willing to part with money and data to pay the price of customer experience.

Millennials and Boomers are tied in their willingness to give their personal data to companies in the banking and financial services industry (35 percent).

Millennials say that they trust travel / hospitality brands (21 percent) and retailers (18 percent) with their personal data more than Boomers (13 percent and 13 percent respectively).

Chatbot innovations are still not hitting the mark with consumers.

The biggest reason consumers shy away from chatbots or digital service representatives is because almost half (48 percent) of respondents are not confident that AI chatbots could understand their request and properly assist their needs.

This means that almost three-quarters (70 percent) f consumers say they would prefer to interact with a human customer service representative compared to a digital customer service rep or chatbot (9 percent).

Consumers are also undecided over which industry is the most technologically innovative.

Shoppers are willing to part with data for better customer experiences zdnet
Sitel Group

One in six men (16 percent) say that the banking and financial services industry is deploying most innovative use of emerging customer experience technology, whereas one in five women (22 percent) say that the retail sector is the most innovative.

Around a quarter of Millennials believe that retail (27 percent) and travel (26 percent) are the most innovative industries, whilst a third of Boomers (30 percent) say that telecommunication providers are using the most innovative customer experience technology.

However consumers say that insurance (2 percent) and banking and financial services (14 percent) industries lag behind telecommunications (24 percent), travel and hospitality (24 percent) and retail (21 percent).

Even though consumers say that the banking and financial services industry lags behind in innovative customer experience, they are happy to share their personal data with companies for a better experience.

As they are more open to sharing personal data here, consumer trust in these industries is high. These industries have an opportunity to build highly loyal, engaged customers if they offer personalised customer experiences for their customers.

Mike Small, chief client officer, Sitel Group said: "Sitel Group is committed to helping brands strengthen their customer relationships and engage with shoppers in more meaningful ways."

Brands who are not focused on providing personalized, customer experience for their customers losing their advocates which will ultimately impact their bottom line.

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