New research shows customer experience top reason consumers choose a brand

Ipsos and Medallia join forces to examine consumer expectations of customer experience with brands across industries, age and region

New research shows customer experience top reason consumers choose a brand

The author(s)

  • Chris Finnegan Ipsos Loyalty, UK
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Ipsos has partnered with Medallia, Inc. on a new cross-industry report into customer expectations and customer experience. The new report, called 'The Customer Experience Tipping Point', explores the relationship between customers’ expectations of a brand, their day-to-day experiences of it and how and why they remain brand-loyal – or otherwise.

Ipsos surveyed more than 8,000 consumers across the US, UK, France and Germany. The findings reveal that customer experience is the number one reason consumers cite for choosing a particular brand when making a purchase. 

It’s a time-critical case of reacting intelligently, being mindful of your customer and knowing when it’s enough to say sorry. And perhaps more importantly, when it isn’t.

The data shows that consumers are quick to both penalise and reward a brand based on their experiences. In fact, 77 percent of respondents claim to have chosen a product or service from a company because of good experiences they’d had with it, while 64 percent of respondents said they have avoided a brand because of a bad experience they’d had within the last year. 

Jean-Francois Damais, Chief Research Officer at Ipsos, explained: “Acknowledgement of customer experience as a driver of business performance is at an all-time high. Failure to properly understand customer needs leads to wasted money, time, and energy. Ipsos’ extensive research has shown that when it comes to dealing with customer issues, the key is to reduce perceptions of unfairness. That’s all about getting the balance of effort right. It’s a time-critical case of reacting intelligently, being mindful of your customer and knowing when it’s enough to say sorry. And perhaps more importantly, when it isn’t.”

In the UK, customer expectations are on the rise in five of the six sectors examined, with a larger share of consumers saying their expectations have increased over the past two years than saying they have fallen. Notably, the sectors where consumers report that their expectations have risen the most – hotels and online retail – are also the ones doing the best in meeting customer expectations, which is no coincidence.

“Consumers today are sophisticated and do their research before making a purchase. They expect to have a seamless and positive experience and if those aren’t expectations met, consumers know they have options,” said Rachel Lane, Solution Principal at Medallia. “For companies looking to create a competitive edge, having a strong brand recognition, or even stellar product, isn’t enough. Customer experience is the tipping point, and without a strong plan to create and maintain a positive experience, businesses will lose out.”

For more information and to download the full report, visit The Customer Experience Tipping Point Study.

The author(s)

  • Chris Finnegan Ipsos Loyalty, UK