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    4 insights into customer happiness: How making them smile makes companies smile

    4 insights into customer happiness: How making them smile makes companies smile

    by Andy Traba
    July 29, 2024
    Share

    According to good ol’ Charlie Brown, “happiness is a warm puppy.” Thousands of cute YouTube and TikTok videos tend to support that notion. Yet, while cuddling an adorable little pup may fill many people with joy, believe it or not, it doesn’t always work for everyone. That includes irritated customers – even if you could figure out how to get a warm puppy into their arms.

    The NICE International Happiness Index 2024 report surveyed over 4,000 people from across the US and the UK. It revealed that 66% of Americans are fundamentally happy in their lives. Yet only 36% of them are currently very happy with the state of customer service. That means a majority of organizations are dropping the ball.

    Is yours one of them? Keeping your customers happy and satisfied takes dedication combined with an integrated customer experience (CX) strategy and the right platform. It isn’t simple, yet it’s definitely worth it. Happy consumers are invaluable because they’re likely to spend more per purchase and become long-term customers.

    Let’s take a peek at four insights uncovered in the Happiness Index that are key to keeping customers smiling—and buying.

    1. Drive customer happiness through acts of simple service

    Your customers have enough to deal with in their everyday lives. Reaching out to a company for help or to report a problem usually isn’t on their list of things they enjoy most. Providing convenient service that makes them happy will make a huge difference.

    Mere acts of simple service create large opportunities to drive happiness with every customer. In fact, almost every respondent to the Happiness Index survey said they experience a moment of happiness when they receive good service – no matter who they are.

    According to Omer Minkara, vice president, principal analyst at Aberdeen Strategy and Research, “It doesn’t matter if a person is making hundreds of thousands a year or not very much at all, the impact of a good customer experience affects a person’s happiness equally. Whoever you are, you expect brands to be compassionate, empathetic, and efficient.”

    Effective, successful CX matters more than ever. Why risk delivering anything less? Put customers first. Make them happy by meeting them wherever they are to provide the omnichannel digital, self-service, and agent-assisted service they need.

    Happy customer using her laptop

    2. Be friendly: It’s what your customers want most

    When customers interact with businesses, they expect consistent experiences at every touchpoint, fast and convenient transactions, knowledgeable service, and to be recognized and understood—no matter which channel they use. But they’re also looking for friendly interactions. Almost every person surveyed for the Happiness Index (91%) said “friendly service” was what made them happy, followed very closely by “quick or seamless” service (90%).

    Providing friendly interactions doesn’t take much effort­. Most customers (97%) feel happy after receiving a simple act of friendly service, big or small. A kind word, empathy, or a welcoming tone can make a customer’s day so much brighter. Being friendly also doesn’t cost companies much, yet it results in substantial benefits. Not only financially, but you’re also helping make your customers’ lives and the world a better place.

    One-fifth of the people surveyed said that when good customer service made them happier, they were more productive that day. Almost a quarter (24%) revealed that receiving good service made them friendlier to others. It’s amazing how much of an impact a friendly gesture can have far beyond a company’s boundaries.

    Happiness Index graphic 1 - open in a new tab

    3. Happy customers help increase revenue and generate loyalty

    According to Barry Cooper, president, CX Division of NICE, “The customer experience is no longer just a part of business; it is the business. A brand can increase their revenue purely through investing in good customer experience.”

    A significant characteristic between a good brand and a successful one is how many loyal customers it attracts. Opportunity abounds for brands who deliver extraordinary experiences that promote happiness. Consumers who suffered a bad experience will avoid brands for up to ten years, yet companies that offer excellent CX will continue to achieve financial benefits through increased revenue and customer loyalty.

    Did you know that 91% of customers are willing to pay more for an experience that makes them happy? How much more? On average, 49% more in the US and 43% more in the UK. Also, over half (52%) of customers are more likely to consider returning to brands that gave them a good experience.

    Ensuring customer happiness is also cost effective with 67% just as happy when receiving friendly interactions as they are with free products or discounts.

    Happiness Index graphic 3 - open in a new tab

    4. Balance AI with a human touch for friendly customer service

    Humans aren’t the only ones that can present a friendly “face” to customers. Artificial intelligence (AI) continues to evolve and be more human-like every day which can result in substantial benefits to consumers and brands. The power of AI will create opportunities for businesses to take customer interactions to the next level as they provide even more personalized – and friendly – service 24/7.

    The Happiness Index states that, “The opportunity for purpose-built AI to enhance customer experience is enormous. 78% of people think using digitization and AI in customer service can make them happier.” When asked for the main ways in which companies could use digitization and Al to make them happier, 41% of surveyed consumers felt that the top benefit is “resolving issues faster,” followed by “not having to repeat myself” (36%), and “giving me consistent information” (31%).

    AI helps businesses create seamless, personalized CX that drives customer happiness and advocacy. Yet keep in mind that AI isn’t a replacement for human agents. Extraordinary experiences are the result of balancing AI with the human touch of agent-assisted interactions.

    It’s important to keep your customers happy, but also your agents. AI helps make agents’ jobs easier and less stressful so that they can help customers more efficiently and successfully. And that ultimately makes companies much happier.

    Happiness Index graphic 2 - open in a new tab

    Be the warm puppy your customers need

    There is no doubt that exceptional, unified customer service is a substantial benefit for your business, whether it’s delivered by a human agent or a very human-like self-service chatbot. It drives results like boosting revenue, fostering loyalty, and lowering costs.

    At the same time, it makes customers dealing with a hectic, complex world much, much happier. Just like a warm puppy. So go be the warm puppy your customers need. Put a smile on their faces—and they’ll put a smile on yours.

    NICE has been dedicated to putting a smile on our own customers’ faces for years. It’s one of our fundamental goals that we take to heart in everything we do. In fact, we even put a smile in our logo to let everyone know.

    Find out more about how happiness is an integral part of a successful CX AI strategy. Explore the NICE International Happiness Index 2024. See how successful everyday interactions with brands affect customer well-being in so many surprising ways.

    Happiness Index cover

    About the Author

    Andy Traba

    Andy Traba is Vice President of Product Marketing at NICE, helping brands create experiences that flow. With nearly 20 years’ experience in product management, data science and business operations, Traba has led startups and large enterprises in driving AI-powered innovation strategies and go-to-market initiatives.

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