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Five reasons why customer experience is the pulse of every business

Customer experience can be credited to improve loyalty. It enhances the prospects of customers to stay loyal. A study by Harvard Business Review showed that nearly 75 percent of customers in a subscription-based business will stay committed if they had a good experience. A customer who faced a negative experience will remain for less than a year according to the same study

Niyathi Rao

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In the uncertain business climate of today, customer success and customer experience are becoming key differentiators in the industry. With the coronavirus lockdown being imposed in many countries, all customers have moved their experiences completely online. Customers are coming together, and it is also known that customers’ expectations are at an all-time high. In 2020, customers have faced a situation they never came across earlier. Great customer experiences have become the norm. Customer experience is now becoming important to keep customers from churning. Customer experience is now necessary to drive loyalty and revenue like never before. In difficult times, it is important to keep the customer experience as a priority. The voice of the customer is louder than before, and they are empowered to make other choices when they are unsatisfied. Investing effort into customer experience has become important for 68 percent of marketers due to its sheer mandatory factor.

Reducing customer attrition rate by 5 percent can improve profitability up to 125 percent as per Emmet and Mark Murphy. As per a survey by Forbes, 86 percent of buyers are ready to pay for a good customer experience while only 1 percent of customers feel companies actually live up to their expectations.

As per a study by Harvard Business Review, customers who had great experiences spend more, remain loyal, and aid in cost reduction.

Improves loyalty

Customer experience can be credited to improve loyalty. It enhances the prospects of customers to stay loyal. A study by Harvard Business Review showed that nearly 75 percent of customers in a subscription-based business will stay committed if they had a good experience. A customer who faced a negative experience will remain for less than a year according to the same study. Loyalty is built with time. When companies are able to handle negative feedback with grace and find solutions to address customer problems, customers feel cared for and happy.

Reduces costs

Improving customer experience does have some costs. However, it is worth it. Customer churn is important to any business. Management of churn is necessary to enhance growth. If customer experience is improved, chances of customer service costs reduce by 33 percent. Although customer experience may not sound well with reducing costs, it works better in the long run. When customer feedback and opinion is counted and taken into account, it is possible to improve customer satisfaction. This will allow companies to reduce costs by tracking issues in the best manner.

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Makes standing out easier

It is getting difficult for companies to stand out from others offering the same benefits. When every company is sharing the same content and information, it is necessary to stand out. Customer experience is a great way to stand out from the crowd. “The customer experience is the next competitive battleground,” as per Jerry Gregoire, Dell. Companies now know that customers compare customer experience and service along with products/services, and process. 88 percent of customers check online reviews to decide whether or not they will continue to associate with the business.

Customer advocates are powerful

Word of mouth is a powerful tool. 84 percent of millennial customers do not trust advertisements. They choose word of mouth or online reviews to make their purchase decisions. Customer advocacy is now important to make others trust your company. By focusing on creating better experiences, it is possible to make every customer experience amazing. A great way to do that is by managing customer touchpoints and creating buyer outlines that make customers satisfied.

Improves retention

A strong relationship with customers will help keep them invested in the company. By making every customer feel special and unique, it is possible to retain them. Personalised experiences and content will create a positive image for companies. It shows that they care about the customer. This will enhance the chances of retention improving business results.

Three actionable tips to improve customer experience

Know your customers

The most important aspect is to know your customers well. To focus on improving customer experience, it is necessary to define and list customer problems, needs, wants, desires, and more. Reflect on customer choices- what they consider as good and bad, their emotions with respect to products and services, and more. When you know customers, it is possible to make sure you customize and personalize their experience in the way they like.

Manage customer touchpoints

To make customer experience better, you need to manage customer touchpoints. Outlining how buyers work will help establish customer journey maps. Once that is done, you can outline and create the touchpoints to establish a better experience with the brand. Touchpoints can be both offline and online. Making sure customer experience is seamless and uniform across is important.

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Check for Feedback

The best way to meet customer expectations and offer the best experience is by asking for feedback. Frequently surveying customers to know how they would rate our business and what changes they can suggest will help. Feedback forms, social media reviews, follow up calls and more will offer opportunities to discover issues with the company. This can be considered as a metric to change or improve these elements in the customer experience strategy.

Way Forward

Customer experience is not just a buzzword. It is the most important word in the new information era. It is a tested method to improve brand value, attract and keep customers, improve growth, and raise revenues. However, it is important to know that customer experience is not a one-time initiative. It is a process that requires a long overhaul for uplifting customer experiences. Making customer perception of the product or service should be better to keep up with competitors and maybe stand out. As per Parature, poor customer experience leads to defection, churn, and low usage leading to an estimated loss of $83 billion USD. The business impact of customer experience also states that the revenue impact from a 10 percent increase in CX score can lead to more than $1 billion.

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(Featured image by Andrea Piacquadio via Pexels)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

Niyathi Rao is a content creating specialist at Smartkarrot Inc., a customer success platform. She worked for Univariety and OpenText previously. She majorly writes for SaaS tech products. She is a bibliophile and listens to podcasts and music when she isn’t doing any of these.