Brands which invest in experience transformation across people, processes and technology, achieve superior business performance, according to a new study by Adobe. The study found that APAC brands focusing on customer experience achieve an average revenue growth rate of 23 per cent, compared with 13 per cent of other companies surveyed.
By investing across these disciplines, businesses in Asia Pacific can trigger a transformation in customer experience that results in increased revenue and a rise in the acquisition and retention of customers.
Adobe commissioned Forrester Consulting to evaluate the business impact of investing in customer experience across the customer lifecycle. The study found that long term investment in customer experience is paying off for those brands willing to embrace it.
“There is no doubt that investing in customer experience is essential to business success. While it’s exciting to see the impact that investment in customer experience is having, the study highlights that only 29 per cent of brands in APAC can claim to be experience driven businesses. There are still huge opportunities in the region. Companies that delay their transition to becoming an Experience Business will find it harder to compete,” said V.R. Srivatsan, Managing Director, Southeast Asia, Adobe.
The study also found that experience driven brands sacrifice short term wins in favor of creating holistic experiences. Organizations that prioritise holistic customer experiences report higher costs, however they enjoy more than twice as much return on ad spend. They also report 80 per cent higher year-on-year growth rates, and a doubling of their customer lifetime value.
“The age of the experience driven business is well and truly upon us and it’s encouraging to see brands across APAC investing in experiences and customer loyalty,” said Scott Rigby, Head of Digital Transformation, Adobe.
Experience driven businesses are customer obsessed, the study highlighted. They invest in specific customer experience and marketing initiatives such as loyalty programs and customer analytics; they are also twice as likely to increase their investment year-on-year.
According to the study, experience driven businesses report happier and more engaged employees. Employees in these businesses enjoy 60 per cent greater personal and team satisfaction than their counterparts in other businesses. They also feel 30 per cent greater company-wide satisfaction.
“There is a higher cost for these businesses, but the boost to their revenue growth rate, customer lifetime value, and even the happiness of their employees, all mean the investment is worth it. Customers are responding to businesses that are clearly dedicated to providing a unique and customized experience for their entire journey. As customers become more accustomed to this, businesses that don’t manage to deliver that experience are likely to be left behind,” Mr Rigby added.
“Everything we do today centers around our customers. We invest in analytics and tools that help us understand what our customers want, so we can customize our offerings and deliver experiences that are hyper-personal and meaningful, and applicable at scale. This has in turn resulted in OCBC Bank increasing its relevancy to its customers, resulting in happier customers with greater value for them as well as for the bank as a whole,” said Cedric Dias, Head, Digital Marketing, Product Marketing and Silver Segment, OCBC Bank.
“The higher-education space in Malaysia is a highly competitive one. Beyond ranking, reputation and quality of courses and educators, student experience is an often understated but key differentiator. By making sure we deliver the right content and experience to the right student and prospect at the right time, we build stronger relationships with our students and alumni community, while at the same time deliver better academic experience across the board,” said Ben Foo, Chief Marketing Officer, Taylor’s University.