Consumers are increasingly seeking a human connection in their interactions with brands, according to the Qualtrics’s 2023 Global Consumer Trends Report. In fact, even talking to a helpful, empathetic service agent matters more to customers than having a short wait time.
Qualtrics is leader and creator within the experience management category, and the Qualtrics XM Institute surveyed more than 33,000 consumers across 29 countries to understand what is driving the current consumer mindset as the economy pushes people to make tough decisions on where and how they spend their money.
Of course, tea brands and businesses should pay close attention to the survey results and recommendations if they want to retain customers and keep them from brand-switching in the New Year and beyond.
Always Think About and Deliver 'Five Star' Customer Service
In 2023, revenue is on the line as companies scramble to hold on to their customers and attract new ones while beating out the competition, so customer experience is everything. In fact, Qualtrics research shows that customers who rate their interaction as a five-star experience are more than twice as likely to buy more from a company as customers who had a one- or two-star experience.
“The human desire to be heard and understood is universal, especially in today’s digital world,” said Bruce Temkin, head of Qualtrics XM Institute. “With all of the economic, political and medical uncertainties over the next couple of years, organizations need to get even better at recognizing and responding to shifts in what customers are thinking and feeling to retain their loyalty.”
The Consumer Trends That Will Shape 2023 Are:
1. Consumer loyalty will be won through personal connections, not pure efficiency.
2. Brand switching is likely to increase as consumer patience runs out.
3. Unstructured feedback will gain importance for understanding consumer’s changing needs.
Overall, according to Qualtrics, consumer loyalty will be won through personal connections with organizations, more so than through operational efficiency.
In tough economic environments, hitting metrics can take on increased importance for companies to justify their budgets, but organizations can’t afford to lose sight of the overall customer experience by focusing solely on operational goals, the firm notes. In fact, treating consumers like humans carries more value than pure operational efficiency during customer interactions.
Qualtrics Suggests That Businesses Should Consider the Following:
- A personable service agent (or agents), which has a bigger impact on consumer satisfaction than a short wait time.
- When a consumer talks to an empathetic customer agent, they are 5.2 times more likely to be happy with the overall experience than consumers who were not satisfied with how empathetic the agent was.
- By contrast, consumers with a short wait time were 2.7 times more likely to be happy with the overall interaction than those dissatisfied with their wait times.
Qualtrics says that efficiency still has a very important place in the consumer experience, and there are certain tasks that people would rather do on their own instead of talking to a company representative. The key is for organizations to understand what their customers want in a given situation and to leave them with a positive experience.
Brand-Switching Likely to Increase in 2023
So far, consumers have been relatively forgiving of challenges brought on by recent staffing challenges due to the economy and the pandemic, but that patience may run out as their own wallets feel the impact of the economy.
During the Great Recession, 38 percent of consumers switched brands (see footnote 1), and it may take only a single negative interaction. As consumers think more carefully about their spending, companies who exceed expectations with how they listen, understand and act on customers' needs can build long-term loyalty in a down market.
Of note: More than half (55 percent) of consumers say they’ve recently had customer service issues go unresolved, and 36 percent are unhappy with the empathy they received from a customer service agent (see footnote 2). This is an opening for organizations to exceed expectations and win loyalty.
When consumers had a five-star experience, they were three times more likely to both trust and recommend a company than if they had a bad experience.
Unstructured Feedback Will Be Increasingly Essential
Nearly two-thirds (63 percent) of consumers say companies need to do a better job of listening to them – unchanged from last year, showing that there is still room for improvement. One way companies can improve their listening is by using context clues from chats or other qualitative responses to understanding a consumer’s specific situation and how to respond appropriately in real time. Looking at this type of feedback also identifies opportunities to introduce changes that benefit the entire consumer population.
Consumers are talking about brands on social media and in reviews, and companies can tap into this trove of feedback to better understand their customers and address their needs.
To read the full Qualtrics’s 2023 Global Consumer Trends Report, click here.
To learn more about Qualtrics, visit Qualtrics.com.
Footnotes:
1. Qualtrics original research, “Predicting the unpredictable” (2020)
2. Qualtrics 2023 Contact Center Trends Report
Plan to Attend or Participate in the
World Tea Conference + Expo, March 27-29, 2023
To learn about other key developments, trends, issues, hot topics and products within the global tea community, plan to attend the World Tea Conference + Expo, March 27-29, 2023 in Las Vegas, co-located with Bar & Restaurant Expo. Visit WorldTeaExpo.com.
To book your sponsorship or exhibit space at the World Tea Conference + Expo, or to enquire about advertising and sponsorship opportunities at World Tea News, contact:
Ellainy Karaboitis-Christopoulos
Business Development Manager, Questex
Phone: +1-212-895-8493
Email: [email protected]
Also, be sure to stay connected with the World Tea Conference + Expo on social media for details and insights about the event. Follow us on Twitter, Facebook, Instagram and LinkedIn.