31 Facts On The Customer Experience And Marketing In The Digital Economy

Peter Johnson

Part 3 of the six-part blog series “Facts on the Future of Business”

Innovation in the business world is accelerating exponentially, with new disruptive technologies and trends emerging that are fundamentally changing how businesses and the global economy operate. To adapt, thrive, and innovate, we all need to be aware of these evolutionary technologies and trends and understand the opportunities or threats they might present to our organizations, our careers, and society on a whole.

With this in mind, I recently had the opportunity to compile 99 Facts on the Future of Business in the Digital Economy.  This presentation includes facts, predictions, and research findings on some of the most impactful technologies and trends that are driving the future of business in the Digital Economy.

To help simplify your ability to find facts for specific topics, I have grouped the facts into six subsets, and below is the third of these:

 

Customer experience value

Since 2009, a stock portfolio comprising the brands that provide the simplest customer experiences outperformed the major indexes. The Simplicity portfolio grew +433%, S&P +135%, DAX +116%, and FTSE +52%.

Source: “Global Brand Simplicity Index 2017, Siegel+Gale

Companies with best-in-class customer experience management achieve year-over-year customer profit margin improvement 527% higher than their peers, and 359% greater company revenue growth.

Source: SAP Center for Business Insight 2017 calculation based on “CEM Executive’s Agenda 2016: Aligning the Business Around the Customer,” Aberdeen Group

86% of consumers are willing to pay more for an upgraded experience, and 55% are willing to pay for a guaranteed good experience.

Source: “50 Important Customer Experience Stats for Business Leaders, The Huffington Post

By 2020, 50% of digital transformation initiatives will fail due to the lack of an end to-end customer experience operating system.

Source: “IDC FutureScape: Worldwide Chief Marketing Officer 2017 Predictions, IDC Research, Inc.

 

Evolving customer expectations

By 2020, 85% of a customer’s brand experience will occur without any human interaction.

Source: “How Omni-Channel Customer Experiences Drive Brand Transformation, Centric Digital

Only 37% of consumers say their favorite retailer understands them.

Source: “Omnichannel: 5 Roadblocks to Avoid on the Journey to Omnichannel Retail Success, FitforCommerce

Businesses that adopt omnichannel strategies achieve 91% greater year-over-year customer retention rates.

Source: “25 Amazing Omnichannel Statistics Every Marketer Should Know, DataMentors

65% of B2B customers say their B2B experience does not match their consumer experiences on Amazon.com and similar sites.

Source: “How will you change buyers into stakeholders?, EY

72% of customers expect a response to their complaints on social media within one hour.

Source: “The Top 14 Customer Experience (CX) Stats of 2016, Clarabridge

87% of Millennials say that they base their purchasing decisions on whether or not a company makes positive social efforts.

Source: “Why Millennials Care About Purpose-Driven Business, D!gitalist Magazine

 

Engaging customers

84% of B2B buyers rate word of mouth the biggest influence on their purchasing decisions.

Source: “What is Advocate Marketing? CustomerAdvocacy.com

92% of consumers trust word of mouth, and 70% trust online reviews.

Source: “How will you change buyers into stakeholders? EY.

By 2020, the average person will have more conversations with bots than with their spouse.

Source: “Top Strategic Predictions for 2017 and Beyond: Surviving the Storm Winds of Digital Disruption, Gartner

In 2016, global use of ad blocking apps grew 102% year over year.

Source: “2016 Mobile Adblocking Report, PageFair.

User-generated videos about a brand get 10x more views on YouTube than content created by the brand, and user-generated content-based ads get 4x higher click-through rates.

Source: “38 Mind-Blowing Stats About User Generated Content, TINT

71% of B2B customers are actively disengaged or indifferent.

Source: “B2B Customers Are Indifferent, Gallup

But only 1% of B2B marketers manage after-sales experiences with customer relationship programs.

Source: “Forrester B-to-B Marketing Predictions: Customer Focus to Sharpen, AdvertisingAge

By 2019, more than 50% of all industries will price and package their offerings as services with flexible subscription or consumption-based pricing models.

Source: “IDC FutureScape: Worldwide Software Business Models and Monetization 2017 Predictions, IDC Research, Inc.

By 2020, approximately 70% of online purchases in China will be made via a mobile phone. This is significantly higher adoption than estimates for other countries: U.S. 46%, UK 40%, Japan 40%, and India 30%.

Source: “The New Connected Consumer Code: Unlocking Digital Commerce Opportunities, Euromonitor International

 

Growing market segments

Chinese consumers took nearly 3 billion trips and spent over $110 billion during the Chinese New Year celebration.

Source: “3 reasons why Chinese New Year is a global phenomenon to heed, Juwai.com

Over the next 15 years, consumer spending in China will grow by more than the total EU consumer spending today.

Source: “The Chinese consumer in 2030, The Economist Intelligence Unit

Global urban populations will add 2.5 billion people by 2050. This massive urban expansion will require as much as $70 trillion in infrastructure spending.

Source: “In a fast-changing world, can cities be built with long-term perspective? EY

The spending power of baby boomers is predicted to be $15 trillion worldwide by the end of 2019.

Source: “5 Key Customer Experience Trends for 2017, The Huffington Post

 

Growing channels

Every day, Facebook videos are viewed 8 billion times, a dramatic increase from the 1 billion daily views average a year ago.

Source: “Top 10: Video Marketing Trends 2016/2017, Doubleshot

Each month, as many as 93% of all Internet-connected millennials visit YouTube.

Source: “93% of Millennials Visiting YouTube, GlobalWebIndex

By 2020, eSports – competitive video gaming – will reach nearly 500 million fans worldwide, more than popular sports such as basketball.

Source: “Think Again: Tech & Media Outlook 2017, Activate

Airbnb usage is projected to grow 1,165% by 2025, reaching one billion “room nights.” Key growth factors include Airbnb’s high levels of repeat customers, and significant word of mouth, as more than 80% of customers are likely to recommend Airbnb to friends.

Source: “One Wall Street Firm Expects Airbnb to Book a Billion Nights a Year Within a Decade, Bloomberg

Live sports accounts for 50% of the Twitter conversations linked to TV programs, even though it accounts for only 1.4% of total TV programming.

Source: “Why Live Sports and Social Media are just at the beginning of a fabulous love story, SportsPro

By 2020, 100 million consumers will shop in augmented reality.

Source: “Top Strategic Predictions for 2017 and Beyond: Surviving the Storm Winds of Digital Disruption, Gartner

Within just two months, the augmented reality video game Pokémon Go was downloaded 500 million times globally, and after 90 days, the app had generated $600 million in revenue.

Source: “75 Incredible Pokemon Go Statistics, DMR

 

To view all of the 99 Facts on the Future of Business in the Digital Economy, check out the Slideshare below.

 

To see the rest of the series, check out our page Facts on the Future of Business,” every Thursday, and we will cover these six topics:

  • The value imperative to embrace the digital economy
  • Technologies driving the digital economy
  • Customer experience and marketing in digital economy
  • The future of work in the digital economy
  • Purpose and sustainability in the digital economy
  • Supply networks in the digital economy

Peter Johnson

About Peter Johnson

Peter Johnson is a Senior Director of Marketing Strategy and Thought Leadership at SAP, responsible for developing easy to understand corporate level and cross solution messaging. Peter has proven experience leading innovative programs to accelerate and scale Go-To-Market activities, and drive operational efficiencies at industry leading solution providers and global manufactures respectively.