What is Customer Experience?
Customer experience is defined as a combination of customers feelings caused by the one-off and cumulative effect of interactions with employees, systems, products or channels. In general, it focuses on the experience a customer has with a company and is essential if you want to get far.
Customer experience is an integral part of Customer Relationship Management (CRM). Thus a customer who has a positive experience with a business is more likely to return and become a loyal customer.
Actually, according to Oracle’s study – 74% of senior executives said that customer experience influences the willingness of a customer to become loyal. So, if you want your customers to be loyal to your brand, invest in their experience.
How is Customer Experience Measured?
For many, customer service and CX are seemingly interchangeable. However, Customer Service is a single touchpoint with a brand, while CX impacts the whole spectrum of feelings and emotions regarding the brand.
How Important is Customer Experience?
The key differentiator for your customers is the quality of CX your brand provides. Let’s imagine you’re an airplane company and your customer wants to request a refund.
Although your customer might have a pleasant experience booking flight tickets on a website or an app, it takes a lot of time to reach a customer service agent about a refund. In this case, the customer experience is not satisfying.
In some similar cases, bad customer experience can cost you a lot of money. Therefore, organizations are investing in improving CX to reap the following benefits of CX management.
Here are some common reasons why Customer Experience is important:
CX reinforces brand preference. Customers are delighted when they witness personalized experiences. Brands that focus on CX have more loyal customers.
CX reduces customer churn. It will cost you more to acquire a new customer than to retain an existing one. A satisfied customer remains with the brand and is unlikely to leave for factors like product price.
CX inspires customer advocacy. Unique customer experience results in a satisfied customer. Happy customers are your best brand advocates.
CX boosts revenue. When your customers are satisfied, they will share the opinion about your company, and add more value in terms of new business sales.
How to Improve Customer Experience?
These are the ways to create a great customer experience strategy:
Create a clear customer experience vision. You should have a clear customer-focused vision that you can communicate with your organization.
Understand who your customers are. In order to really understand your customers’ needs and wants, you need to be able to empathize with the situations that your customers face.
Create an emotional connection with your customers. Customers remember how they feel after using your product or service. They even get emotionally attached to it.
Capture customer feedback in real time. This is the best way you can tell if you are delivering a wow customer experience.
Measure the ROI from delivering great customer experience. Namely, business results tell you if all the investments in your team are paying off.