Companies need to leverage new technology to improve customer experience

It's no secret that poor customer service can have a devastating effect on a company. However, with the growth of electronic payments platforms, the process of providing quality customer experience is rapidly changing.

A recent Oracle survey revealed that although organizations generally understand the importance of top-notch service, many are struggling to do so.

"This report demonstrates that organizations around the globe and across many industries are beginning to understand the real business impact of not offering great customer experiences, but are facing execution challenges," said David Vap, group vice president at Oracle. 

According to the study, poor customer experiences lead to an estimated 20 percent revenue loss per year. Meanwhile, less than half of executives said they thought consumers would switch companies because of poor service. By comparison, 89 percent of customers said that negative experiences would motivate them to switch brands. 

At the same time, decision-makers are planning to up investment on customer experience by 18 percent within the next two years, as 93 percent of respondents consider it to be one of their companies' top three priorities. Vap suggested that by "implementing flexible processes and technology tools, organizations can deliver personalized, seamless customer service through the entire experience lifecycle."

Social media, technology can help

Many organizations have struggled to implement successful strategies, largely because of a lack of investment in that area. For example, the survey revealed that more than one-third of companies do not use social media for customer service or sales purposes. 

However, executives have at least discovered the benefits of new technologies like social networking sites, with more than 80 percent of respondents considering it an important component of the customer experience. In addition, a separate study by Social Media Marketing found that companies of all sizes are leveraging the technology.

"The reality is that many more small and medium-sized businesses [SMBs] are now successfully driving social media marketing programs," said Michael Crosson, publisher of SocialMediopolis.com.

The report found that SMBs are using many different social media websites, in addition to just Facebook and Twitter. Cinsay, which recently announced its list of ecommerce tips, affirmed the value of sites like Pinterest, Google+ and even MySpace. Pinterest in particular is an effective way to promote products.

At the same time, the report stressed the importance of Facebook and Twitter, which remain the two most popular social media websites for both personal and consumer use. In addition, the company suggested that organizations implement mobile strategies as well.