Importance of Customer Experience

“Businesses are co-created by consumers through shared experiences." - Brain Solis.

Sometimes, the best product doesn’t always win.

I’ll tell you why.

You may have the best product/service in place, but once you miss the importance of customer experience, you’ll be surprised at the level of rejection you’ll face in the market.

Don’t take my words for it, 86% of consumers in a report by Walker said they’ll pay more for excellent customer experience. 

In short, the same research found that customer experience would surpass product quality and price as a key brand differentiator. 

To win in this digital age, you need to apply context, empathy, employ the experience your customers want, and making them co-creators in every phase of the business is vital.

It’s how to win their hearts (and wallets), as well as make them forever loyal to your brand. 

This article will expose the importance of customer experience and how it helps drive exponential growth for your business. 

But first, let’s deal with the ‘big guy’ in question.

What is Customer Experience?

In a broad view, it can include a lot of elements, but it really narrows down to how customers perceive your brand.

Customer experience, or CX for short, comprises the interactions between a customer and an organization throughout their business relationship, which can include awareness, discovery, cultivation, advocacy, purchases, and after-sales-services. 

And you have to note, perceptions change.

You may feel you have high-quality products, better winning strategies, and strong customer experience, but if a customer’s complaint is left unanswered for days, their perception of your business changes.

Which might lead them to seek alternatives.

Think of this.

The business environment is changing faster, becoming more uncertain and complicated by the day.

Standing out is no longer a question, it is a necessity for your survival.

How do you do this?

The ultimate answer lies in these words by Sam Walton.

“There is only one boss. The customer” – and putting them first will save you from lots of headaches.

This is why: 

Deep down, you know that attracting the right customers online for your business can be difficult.

Right?   

But the question now is, how do you treat the ones you already have?

You need to understand the ripple effect a great customer experience provides for your business.

People buy from people they trust.

Customers talk to other people (online or offline) about your product, whether good or bad - which in most cases you can’t influence.

You need to make it count - every encounter one makes with your business should create an emotional affiliation. (good ones)

Statistics Proving the Importance of Customer Experience

You already read that 86% of customers said they’ll shell out more money on a product packaged with excellent customer experience. 

As if that wasn’t enough, the following stats, according to research by Acquire.io further proves the importance of customer experience. 

  • 74% of senior executives said customer experience impacted customers' enthusiasm for being brand advocates, according to an Oracle survey.
  • 60% of participants were willing to pay more for better customer experience in a study by American Express.
  • 80% of companies participating in research conducted by Bain & Company believed their customer experience was great. Only 8% of customers agreed.

The last statistics above revealed that while you may think your customer experience is okay, your customers (who it’s intended for, after all) think otherwise. 

Hence, before we delve into the critical importance of customer experience, you should also take some time to improve your customer experience always. 

7 Key Importance of  Customer Experience (that Drives Growth)

1.  Increases Customer Attraction and Conversion

Do you consider word-of-mouth marketing as an integral part of customer acquisition?

Good. 

Then, having a customer experience strategy to maximize its use is ideal.

As per Nielsen's study in 56 countries, up to 92% of consumers rely on recommendations from friends and families.

What this spells for your business is simple:

‘Have a process that creates the ‘wow’ factor for your customers and which every employer can relate with easily.

It’ll ensure that when customers encounter you at every touchpoint, they’ll find you appealing enough to talk about.

Download our FREE Customer Experience (CX) Strategy Checklist and tick the steps you need to excite and activate customers

2. Increases Customer Acquisition and Engagement 

Research reveals that over two-thirds of a company's competitive edge in the market depends on the experience they deliver to their customers. 

Not only can companies not grow without good customer relations–they can’t even compete. 

Believe me, a CX strategy that empathizes with her customers will not only win but dominate the hearts and conversations of her customers.

Your business needs engaged conversations with its ideal audience.

In fact, it has been proven that engaging content that puts the customers first leads to an increase in sales and revenue generation.

3. Increases Customer Loyalty and Retention

More engagement births trust and trust brings loyalty.

A well developed and executed CX Strategy serves as the gateway to acquiring customers that would be loyal to your brand.

Ask yourself this question:

Why do preachers have cult followings of people ready to die to defend them?

Is it their message or how the message helps their audience get to the place they desire?

It is. 

Psychological wiring is what gets you to always love anyone who puts you first, helps you solve pressing problems, and makes life easy for you.

In return, they will do anything to help you grow whether you ask them or not.

That’s the magic of CX.

4. Less Churn and Improved Crisis Management

Trust is of great importance in every customer experience.

This is so because:

When customers trust your business, they are many times more likely to communicate any complaints directly without drawing any bad PR for you.

Bad reviews online never go away, you have to know this.

And in this digital age, before people buy from you, they visit places where you are reviewed.

Guess what?

Decisions are made instantly once they see, on average, just two bad reviews on the product.

So having a good CX strategy helps you deliver on your promises well enough to keep bad reviews out of the press.

Also, it helps your company manage its brand reputation when in crisis because you are already dealing with people who love you.

5. Increased Brand Value and Perception

By defining and executing a differentiated customer experience strategy that puts your customers first, you improve the way your customers see you.

When the unique value your brand proposes is in conformity with your CX strategy, brand value, and perception increases, it helps you beat competitions and stay consistently in the hearts of your customers.

6. Increases Customer Feedback on Product Improvement

Customer feedback is key to product improvement.

Yes. 

But what if this feedback is given off online as a bad customer review. 

You’ll agree that in this consumer-centric internet generation, it takes just one viral negative review to destroy a product.

But with a customer experience that understands and puts its audience first, you’ll kill two birds with one stone.

Firstly, they’ll love you.

And secondly, be on the lookout for anything that would hurt you - including giving you feedback for improvements.

7. Reduces Marketing and Service Costs

A customer experience-focused approach help companies understand their customers better, leading to less guesswork about what customers want, how and when they want it.

With the guesswork out, potential savings in marketing costs are increased.

In traditional marketing, companies spend a lot calling customers to add new products or services without having any clue of their particular requirements.

According to research by Stratford Managers:

"a CX-centric approach can have built-in checkpoints helping companies take a more customer-centric approach to marketing.
Companies collect data, create business analytics, and understand market dynamics. It lowers costs while increasing sales and customer satisfaction."

Wrapping up

One of the most significant impacts your business can make on her customers, might not necessarily come from the product you are offering. 

Because, check this, you are not the only one offering the product and service.

The key differentiator then is, on how you deliver the experience of your product or service to your customers.

A well planned and executed CX strategy understands and incorporates this key ingredient to create that ‘wow’ experience.

And if you are wondering ‘how’ to create one, worry no more, with our done-for-you guide, you can start right now to create that unique experience for your customers.

Download our FREE Customer Experience (CX) Strategy Checklist and tick the steps you need to excite and activate customers

 

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Nonso Emetoh

Nonso holds has a B.A in Human Psychology -- a prowess he uses to help businesses create contents to move the minds, hearts, and wallets of customers.

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