Editorial
The Gist
- Experience over price. 72% of U.S. consumers say they’ll pay more for a better customer experience, even during economic uncertainty.
- Industry and demographics matter. Upgrade preferences vary significantly by sector, age, and gender—meaning one-size-fits-all strategies won’t work.
- Moments matter more than frequency. High-impact touchpoints like customer service can swing sentiment more than frequent but shallow perks.
It would seem like a foregone conclusion to maintain or ideally lower prices in a time when the economy is anything but dependable. Yet, new research from the Qualtrics XM Institute show that 72% of US consumers are willing to pay more for a better experience, meaning that despite uncertainty about the future, nearly three-quarters of the market is willing to prioritize CX over cost.
Let’s look at three takeaways from this research and what brands can do to address this need in the market, while not alienating the other 28% of customers.
Table of Contents
- The Experience Upgrade Preference Spans Industries
- Customer Experience Variations by Demographic
- The Right Time Matters More Than the Frequency for Customers
- What Brands Should Do About Customer Service
The Experience Upgrade Preference Spans Industries
While the research supports that a majority of customers seem willing to spend extra to receive special treatment and perks, that willingness varies widely depending on the industry.
The areas where consumers are most enthusiastic are when the stakes—or the pain points—feel particularly high: airline passengers (84%), rideshare users (77%) and investment-management clients (73%) say they would pay extra for an upgraded experience. The share dips to 70% for parcel delivery and 68% for better customer service, though these are still rather substantial numbers.
All of this points to the idea that “luxury” varies by context and the stakes involved from the customer’s perspective. For instance, air travelers face potential delays, cramped cabins and labyrinthine terminals, so even modest improvements feel like a major win. By contrast, paying extra for basic customer service doesn’t have quite the same perceived value, and while it is still valued it has a lower ceiling.
Brands should take these numbers to help them make some potentially tough decisions. While a majority (50% or more) may still be willing to pay a little extra for some added convenience, the tradeoff could be the perception by the rest of their customer base that the company is trying to nickel and dime their customers for every little thing. Thus, it would be better to focus on those items that the vast majority are willing to pay for.
Related Article: What's Behind the Best and Worst Customer Service Strategies?
Customer Experience Variations by Demographic
Just as preferences varied by industry and the types of perks and upgrades provided, there were also some rather large contrasts by age and gender. Brands would do well to pay attention here so they don’t take costly guesses.
As an example, the study notes that 77% of men versus 67% of women are inclined to pay for upgrades. Age amplifies the spread: the 18–24 cohort is the most enthusiastic about paying for upgraded experiences, whereas willingness appears to erode as age increases. That doesn’t mean that older audiences completely tune out upgrade offers, but they are more likely to weigh the cost-benefit and look for some type of “return on investment” rather than justifying it as YOLO (you only live once).
There could be many reasons for this age group being more inclined to upgrade, from “growing up” on in-app purchases, a general tendency to want to customize their digital (and real-world) purchases, and perhaps less experience with managing budgets and the cost of houses, families, and other things that older generations are dealing with.
Older segments that have been through at least one recession as a working adult, and who grew up with a variety of services that had less ability for customization like the early days of television and cable, may be more skeptical about endless upgrade and customization options that all carry a price tag. Thus, marketing messages that promise something is “worth it for the memories” resonate with the former, while the latter want a concrete explanation of value.
To be successful, brands should take note and develop tiered offerings that speak to these segments—both the experience-hungry youth as well as the more seasoned ROI crowd—rather than spray identical benefits across the demographic map.
Key Findings on Experience vs. Price
This table outlines how consumer preferences and behaviors vary across industries, demographics and key moments, based on Qualtrics XM Institute research.
| Theme | Insight | Implication for Brands |
|---|---|---|
| Willingness to Pay for CX | 72% of U.S. consumers are willing to pay more for a better experience—even during economic uncertainty. | Brands can justify selective premium pricing by delivering value-added experiences, not across-the-board perks. |
| Industry-Specific Preferences | Airlines (84%), rideshare (77%), and investment management (73%) top the list of sectors where customers will pay for upgrades. | Focus upgrades on high-pain-point industries where perceived value is highest to avoid backlash over “nickel and diming.” |
| Gender Differences | 77% of men are willing to pay for upgrades vs. 67% of women. | Segment marketing by gender where appropriate, ensuring that value propositions align with varied expectations. |
| Age-Based Willingness | Younger consumers (18–24) are most eager to pay for improved experiences; older segments show more cost-benefit skepticism. | Craft tiered offerings that appeal to younger customers’ desire for personalization, and older users’ focus on ROI. |
| Moment-Based Influence | Key touchpoints like customer service have more influence on NPS than frequency of smaller perks. | Prioritize investment in impactful moments (e.g., problem resolution, service quality) over constant minor enhancements. |
| Customer Service NPS Impact | In banking, there’s a 44-point NPS difference between customers who resolve issues and those who don’t. | Strengthen service capabilities—this is where customer loyalty is often won or lost. |
| Strategic Recommendations | Use journey mapping, break down data silos, build experience tiers, empower staff, and connect CX to financial KPIs. | Brands should shift from generalized efforts to focused CX strategies tied to customer behavior and business outcomes. |
The Right Time Matters More Than the Frequency for Customers
Of course, it’s not always about the upsell. Sometimes knowing when and how to intervene in a meaningful way can make a big difference in the customer experience. Yet it can be costly—and not necessarily provide a direct return on investment—for brands to try to “wow” their customers at every touchpoint. The research shows that there are a few key points where taking an action can have a big impact, for better or worse.
For instance, despite not always being the most frequently cited pain point, the strongest predictor of NPS across industries is getting help from customer service. In banking, for example, there is a 44-point NPS spread between customers who solved their issue and those who did not. Similarly, airline passengers gripe about baggage claim, yet their overall sentiment hinges more on in-flight experience and customer-service responsiveness.
What does this mean for brands, then? Companies that chase every minor annoyance dilute resources and produce superficial wins, while those that focus on the moments that reliably swing sentiment delivers disproportionate returns—especially when those moments overlap with the willingness-to-pay data.
So, before budgeting for grand gestures, companies should ensure they are able to solve some of the fundamental “help me” moments their customers appreciate, remember and reward companies with their loyalties over.
What Brands Should Do About Customer Service
As demonstrated from the research, focusing on every interaction, and even on every customer with costly and sometimes time-consuming upgrades and perks is not likely to move the needle in a meaningful way. Rather, taking a targeted approach and focusing on the right experience with the right audience, and at the right time, will keep customers happy and loyal, while keeping costs contained.
Here are a few things that brands can do to capitalize on this willingness of customers to spend more for a premium customer experience:
- Identify high-impact interaction moments. You can use journey analytics tools to map them, then run price-elasticity tests around reasonable premium variants to see what moves the needle.
- Consolidate customer intelligence. You’ve heard it many times before, but you need to break the silos of customer service, product, and marketing data. A single view of sentiment keeps personalization from turning into guesswork.
- Design experience tiers, not mere upsells. Package speed, personalization or exclusive access—calibrated for the audience segments that will be most eager to pay for an improved experience.
- Equip the frontline with the data and tools they need to be successful. Training, authority and the right tech stack let service agents convert frustrated customers into advocates. Given customer service’s outsized influence on loyalty, skimping here is not optional.
- Tie your customer experience with organizational KPIs. Marry incremental revenue to the cost of enhancements. Your CFO can be an ally when CX is proven to provide returns.
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Many consumers have declared, with their wallets, that an upgraded experience is worth at least a little extra. The brands that listen, target thoughtfully, and reinforce key moments that matter and truly shape sentiment will enjoy happier and more loyal customers in the months to come.
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