Customer experience has long been predicted to overtake both price and product when it comes to why customers choose one business over another – and it makes sense, doesn’t it?
A strong customer experience strategy means you understand customer needs, then build a customer journey that meets those needs, delivering an excellent, seamless experience consistently and making your customer want more. Because loyal customers spend more than new ones – your business and your revenue grow.
When you think about your own experiences as a consumer, is it the price tag that makes you keep shopping somewhere? Or is it how easy it is to shop there? How convenient? How valued do they make you feel?
What is customer experience (CX) in business?
The business world has only woken up to the importance of customer experience in the past ten to fifteen years.
It’s still a relatively new, high-growth area of business, but the great news is that this means it’s still a worthwhile impactful battleground for any business that wants to grow using customer experience.
Customer experience strategies have evolved over that time to include customer feedback (or Voice of the Customer programmes), empathy maps and customer journey maps, advanced voice analytics and other tech solutions like chatbots.
Customer loyalty is now more readily measurable thanks to tried and tested metrics such as Customer Satisfaction Scores, Net Promoter Scores, Customer Effort Scores and more customer experience management measures like average spend per customer and retention.
With 86% of businesses actively working on their customer experience reporting an increase in revenue, it’s clear that any business that prioritises customer success and positive experience across the entire customer journey will see increases in customer activity.
In fact, since the pandemic, those businesses who have used Covid as an excuse, who have failed to make the changes needed to keep up with their customer’s expectations and provide a positive customer experience, have found the hard way that it’s often the quality of your customer experience that drives business growth.
How a great customer experience can grow your bottom line?
A great customer experience improves a lot of aspects of your business growth, and the more positive a customer’s experience is with your brand, the more it will inspire loyalty and drive customer retention, ultimately boosting revenue growth and benefitting business outcomes.
A positive customer experience benefits:
- Profits – Through word of mouth, positive reviews and a great reputation.
- Value proposition – Indicates the position of your brand in the market through ROI.
- Customer Lifetime Value – Indicating how much revenue a customer generates throughout the duration of their relationship with your brand.
How can businesses create a positive customer experience?
There are many ways you can impact a customer’s experience, from offering personalised recommendations to rewarding them for their feedback but to gain the ultimate advantage, you need to be doing more!
Most companies don’t realise this how important it is to keep their current customers happy and satisfied, instead focusing too much on rewarding new customers. This leaves current customers feeling left out and unappreciated – don’t make your customers feel like that!
Check down below for some of our top tips to impress your customers!
Our Top Tips for improving your customer experience
- Don’t forget that your customer journeys start from the first moment they become aware of you and cover every one of your customer touch points until the last interaction they have with you. Whether you are an online business, face-to-face, B2B or B2C, a great experience is the number one brand differentiator.
- Ask for feedback, listen to what your customer is telling you, close the loop with them and make sure that you use the valuable information they offer to take action to improve any pain points. Then let them know what you did! It makes a customer feel more valued to know their time spent feeding back was useful and that your business appreciated it.
- Make a deliberate decision as a business to focus on driving increased customer loyalty. Make sure everyone in the business is brought on the journey, and understands their role in the customer experience and how important a consistently great customer experience is to customer loyalty and winning new customers. Your customer experience strategy should include every team, every employee and every role – regardless of whether they are customer-facing or not.
- Finally, if you’ve read all of this, and you know how important customer experience is, but you’re just not sure where to start when it comes to refining or creating a customer experience strategy, you can take our customer impact scorecard FREE here
How will you know if your customer experience is driving business growth?
Sometimes it can be hard to determine how successful your customer experience efforts are going in terms of business growth. Don’t worry, that’s what this blog is here for and below are some key indicators to look out for!
Business Growth Indicators
We’ve long advocated that our customers use business growth indicators such as increased revenue, reduced customer churn, and market share to track the success of their customer experience strategy. Using CX metrics like NPS, CSAT, CES or other customer relationship management tools alone isn’t usually enough to track whether your customer experience is genuinely meeting customer needs or whether it’s ticking some of the nice to haves, but leaving some customer expectations unmet.
That’s not to say that you can’t also learn a lot from your customer’s feedback and customer metrics like NPS and CSAT, as these often provide valuable context to the more strategic metrics such as customer churn. They allow you to understand why someone left or which section of your experience drives business growth.
Finding a budget for customer experience projects is often one of the biggest hurdles that CX teams face, but why? We know customer experience often holds the key to sales growth and even brand growth, so why the reluctance to invest?
Businesses that recognise the huge untapped potential and the competitive advantage that developing their customer experience strategy can have are likely to increase sales, strengthen brand loyalties and attract more customers.
There are so many statistics emerging on the ROI that a positive customer experience can provide that we now know that when done the right way, customer experience drives business growth. If you have great customer service, then that’s a step in the right direction, but there’s a difference between customer service and customer experience.
For a serious return on your investment, everyone in the business needs to understand the role they play, how important they are to the wider customer experience and what they need to do to help the business achieve its goals through improved customer experience.
Exceptional customer experience doesn’t happen by accident. It’s really important that all businesses recognise that fact. It takes talking to existing customers, looking at customer interaction, actually measuring customer experience and improving customer satisfaction. It takes a deliberate desire to move all the customer metrics in the right direction, supported by the right set of values and behaviours.
If you can get your whole organisation to work together, especially your customer support team, to embody the values and behaviours that it takes to build a truly great customer experience, then you can expect a wide range of benefits that prove the ROI of customer experience and the value of a loyal customer.
Positive reviews you can share in social media posts as social proof, happy customers who become organic brand advocates and shout about your business to everyone they meet, an improved brand reputation, brand loyalty and increased revenue. There are just so many possible benefits.
So how do you know if you need to work on your customer experience? (click here for a link to our customer impact quiz) or if you’d rather take the quiz another day, customer satisfaction can be a great place to start to build a benchmark.
A customer satisfaction score is a score out of five that you can generate by asking your customers for their feedback and asking them to score how satisfied they were. It’s important to limit the number of questions you ask, as often you’ll get a higher volume of results, the simpler the survey is, which enables a better understanding of your entire customer base.
Client retention rate
Another great indicator that your customer experience doesn’t provide customers with what they need is if they leave.
We know that, on average, 91% of unhappy customers leave a business without ever raising a complaint or telling them why, so it’s entirely possible to never receive any complaints but still not provide a great customer experience.
Instead, if you track how many clients you keep and how many you are losing, it can show you whether you need to improve customer experience and drive increased customer loyalty.
We owe it to our customers to provide the best possible customer experiences, whether we are a small business, a solopreneur or a large multinational enterprise. There’s always something we can do to ensure we are improving customer experience, and now you know that improvement will also lead to increased ROI! Happy journey mapping CXers!
Why is it important for businesses to gain customer loyalty?
The reason customer experience drives business is because of loyalty. Your business success is reliant on having satisfied, loyal customers. If you focus on excellent customer service that’s driven by your core values and improving customer satisfaction, then you’ll no doubt be improving the customer’s experience.
Did you know less than half of all companies provide a good customer experience? If you aren’t yet asking for customer feedback, or if your customer feedback indicates that customer loyalty is wavering, then you can’t go wrong by investing in your customer experience.
Get in touch by contacting us today to kick-start your growth through customer experience!