How does customer experience drive business growth?

how does customer experience drive business growth

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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? 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 they make you feel?

A strong customer experience strategy means you understand your customer’s needs, build a customer journey that meets those needs, delivers excellent experiences consistently and makes your customer want more. Because loyal customers spend more than new ones – your business and your revenue grow.

b2b customer experience thinkwow

What is the importance of customer experience in the business world?

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 strategic 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 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 does customer experience create value?

Successful business owners understand that customer experience isn’t just about chasing a positive NPS score (although it is important to have customer feedback metrics in place). It’s about understanding how your customer wants to do business, removing any pain points from their customer journey and really adding value.

Customers who are asked what they think are far more likely to become a loyal customer to your company (instead of to the competition…)

Tools like customer journey mapping and easy feedback mechanisms take away the guesswork from what your customer wants. You don’t need to build an experience based on assumptions, because you can ask your customer how they like to work with you, what they love about your company, and pinpoint any frustrations.

Once you have that insight you can create a customer journey that actually works for your them. You can build an above-average customer experience that helps you stand out as industry leaders, with minimal risk that you’ll invest in delivering a solution that won’t be as well-received your customers as you had expected.

If we again think of our own consumer experiences and what we want from a business, it’s easy to see that if we are able to provide feedback, feel listened to and, as a result, receive excellent customer service, smooth and seamless transactions and a great product, we’ll feel like we’ve received great value.

But – it needs to be consistent across all our interactions, it can’t just be held together by one team or one enthusiastic employee, it has to cover the entire customer journey from end to end . Customer experience is how we make that all come together.

Did you know that 67% of customers would pay more to get a better customer experience? Clearly, customer service matters so much to customers that they would normally pay more to interact with a brand that does it well.

business growth indicators thinkwow

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 or CES 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 customer 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 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 who 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.

ROI

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 it’s 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 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, 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.

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 and increased revenue, there are just so many possible benefits.

Customer satisfaction

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 be providing 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!

In Summary

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.

Here are a few ways you could get started:

Our Top Tips for improving your customer experience

  1. Don’t forget that your customer’s journey starts from the first moment they become aware of you, and covers 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.
  2. 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 up 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.
  3. 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, understand 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.
  4. 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. We’ll ask you a set of quick-fire questions designed to understand your current approach to customer experience, and we’ll give you a score and results that breakdown what you can do as a next step.
Rebecca Brown
Rebecca Brown

Rebecca's intense passion for customer excellence began over a decade ago when she oversaw the opening of several high-end retail art galleries, balancing the need for an exceptional experience with a drive for sales.

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When it comes to strategy, is yours winning loyal customers…
or sending them running into the arms of your competition?