How Culture Plays a Role in your VOC Strategy

Why Culture Matters When Expanding your Business to Other Countries

In the United States alone, poor customer experiences result in an estimated $83 billion loss each year, and people are twice as likely to talk about a negative experience than a positive one. Worldwide spending on customer experience (CX) technology is expected to reach $641 billion in 2022 (IDC). The CX industry in the US is expected to grow 15% annually from 2021 to 2028. An astonishing 90% of companies now have a CXO or equivalent executive, compared to 65% in 2017.

In Some Cultures, Personalization is More Important Than Service

According to the Asian Development Bank, by 2030 Asia will make up 43% of global consumer spending (US$32.9 trillion). According to a large-scale study by Economist, more than 50% of companies invest in customer service only after the development of their core product. Japan leads in automated services — from vending machine style ramen shops to automated kiosks for major transportation. Companies that find the right approach to personalization are likely to reap significant rewards, including improved engagement, sales, and profitability.

In Other Cultures, Customers Are More Concerned About Their Privacy

According to Forrester, only 29% of European leaders agree CX is a high or critical business priority, compared to 44% in APAC and 38% in the US. American consumers complain more often when disappointed; approximately 50% spread word of unsatisfactory customer service experiences. In contrast, only 27% of United Kingdom customers will openly publicize bad service experiences. With stricter privacy laws and consumers less willing to share data, leaders are prioritizing customer journey mapping and improving digital experiences to improve retention and brand loyalty.

Bottom Line: Regardless of Cultural Differences, Customer Experience Matters

Gartner research recently discovered that collecting customer feedback can increase upselling and cross-selling success rates by 15% to 20%. Companies that actively engage in a voice of customer program spend 25% less on customer retention than those that don't. No matter the culture or location, companies that invest in Voice of Customer programs experience higher client retention, employee engagement, and spend less on customer service.