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January 2014

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Research Reveals Rewards of Getting Digital Experiences Right—And the Risks of Falling Behind

It's becoming common knowledge that as customers gain power, engaging digital experiences (DX) are crucial to profitability—and those that fall behind in providing them are bound to pay the price.

Most companies are still determining the best way to deliver relevant, personalized, connected DX across all touchpoints—from websites to mobile phones and tablets. Strategies can vary, especially as technologies and customer behavior both continue their rapid evolution.

"Still, there are clear principles for effective DX backed up by up by thought-leaders, industry organizations, and analyst research, which we have depicted in a highly condensed infographic. Organizations of all kinds need to take these into consideration as they design their own DX strategies—or risk losing their customers forever," says Michael Snow, senior principal product marketing director, Oracle WebCenter.

  • Ignore DX at your own peril. The risks of inaction are clear. About 89 percent of consumers have quit doing business with a company because of a bad customer experience, and on average, a consumer tells 24 people about bad online experiences. But the benefits of a successful DX initiative are also clear. For example, companies that prioritize the customer experience generate 60 percent higher profits than their competitors.
  • Personalization leads to profitability. More than three-quarters (77 percent) of customers say they have made additional online purchases based on personalized product recommendations. And businesses that personalize digital experiences achieve increases in sales averaging 19 percent. Engaging DX is also fertile ground to achieve competitive advantage, considering only 35 percent of consumers say their service provider provides personalized service during interactions.
  • Get social. Peers have a powerful influence, with 40 percent of consumers factoring in social media recommendations when making purchasing decisions. And customers who engage with a company via social media spend 20 to 40 percent more than other customers.
  • Mobile interactions are key drivers. The ubiquity of mobile technology is clear: 4.8 billion people on the planet have a mobile device. And research shows mobile interactions are vital inflection points in customer journeys. For example, 70 percent of computer-based online searches result in action in one month, while 70 percent of mobile searches result in action within just one hour.
  • Differentiate with cross-channel consistency. 83 percent of customers say they receive an inconsistent response across channels from their service provider. That means there is a real competitive opportunity for companies that deliver consistent experiences across channels. However, there are challenges —40 percent of organizations cite complexity as the greatest barrier to improving multichannel customer experience. But the potential rewards are great. For example, 75 percent of customers prefer online self-service support over other channels when it is available and reliable.
Watch the video "Driving Sales and Loyalty Through Digital Marketing." Learn what your customers expect from digital marketing, and how Oracle WebCenter's leading-edge web, content, portal, and collaboration technologies can help you deliver the relevant, interactive, multichannel experiences customers crave.

Download the infographic Engage Your Customers Online—Or Lose Them Forever.
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