Why Customer Experience Is So Important
Customer Experience will Define the Success of your Brand
Think about the last time you experienced really great service as a customer – remember how and why that experience felt great.
Now do the same the last time you experienced really poor service as a customer.
If you recall the negative experience more vividly than the positive ones, you’re not alone.
On average, customers will tell nine people about a positive experience, but tell 16 people about a negative experience with a brand.
Good customer experiences are critical to the success of your business. Customers today are no longer basing their loyalty on price, product, or brand. Instead, they will stay loyal to brands where they have had a positive experience.
In fact, in a 2017 report, 96% of customers say customer service is essential in their choice of loyalty to a brand. And those companies with a customer service mindset drive revenue 4-8% higher than the rest of their competitors.
Of course, some brands are learning the hard way. Just look at United Airlines a few years ago. When a passenger’s ordeal went viral on social media, $1.4 billion in value was wiped out.
United Airlines brand crisis only goes to show that brands still have a long way to go. Which means there is an incredible opportunity for a brand to grab hold of its market and disrupt their industries.
But customer experience isn’t just about being customer centric.
Everything a brand does- from marketing, advertising, research, branding, using technology and more much more – all play an equal role in shaping a customer personal experience.
The Use of Technology in Customer Experience
The emerging technologies of today will be fuelling the customer experiences of tomorrow. And many of those experiences are empowered using smartphones that consumers carry with them every day.
Indeed, from artificial intelligence and voice to augmented reality and virtual reality and more, there’s no lack of new ways to connect with customers, and the list continues to expand.
A great example is Netflix. The streaming giant mines the data of its subscribers using artificial intelligence to provide hugely personalised experiences to each of their 180 million subscribers worldwide.
Many businesses are also experimenting with augmented (AR) and virtual reality (VR) technology, which turns something as mundane as shopping for new shoes into a sensory experience for customers to virtually try on new shoes.
Lacoste, for example, added augmented reality features to their mobile app- LCST, which lets shoppers virtually try on their shoes. A transaction that would have taken hours can now be accomplished within minutes, thanks to AR.
But technology isn’t just a way for brands to provide new shopping experiences for their customers. It’s also a way to get customers involved in your marketing campaigns, namely through social media.
An innovative example of this was the promotion of Spotify’s #2019Wrapped campaign. You may notice, if you’re a user of the music streaming app, then you know every year Spotify shares data with their users, compiling their most listened to artists, songs, albums in a personalised summary.
For 2019, they decided to go bigger with a summary of the past decade (2010-2019) showing how users’ listening habits have changed throughout the years. These summary snapshots could then be shared across Instagram, Twitter, and Facebook.
By using personalised data to offer users fun and insightful data visualisations to share, Spotify essentially created a winning ad campaign and let their users do the work of promoting it.
The Key to a Successful Customer Experience
A customer’s experience, whether positive or negative, can play a huge role in the success of a business. Whether its repeat business from returning customers or new business from potential customers, research shows the resounding effects that customer experience can have on your bottom line.
And with so many channels through which companies can communicate with their customers, it seems like creating a compelling and memorable customer experience is more complex than ever.
But in truth, nothing has really changed. Customers have always wanted the same thing, and that is to be taken care of. In fact, a study in 2006 discovered 70% of buying experiences are based on how the customer feels they are being treated.
Sure, technology has given us the tools to respond quickly and provide alternate ways of communicating, but customers only care that they can connect with you.
It could be through phone, email, chatbot, social media- whatever communication method that’s easiest and most convenient for them.
Investing in Customer Experience is Essential to the Growth of Your Brand
In this technologically advanced world, its imperative companies focus on improving customer experience. 84% of companies that work on improving their customer experience have seen an increase in revenue.
Other than an increase in revenue, there are other equally important reasons you need to consider investing in customer experience:
- Better Growth
Research from Salesforce found 75% of people expect to have a consistent experience with brands whether it’s through mobile, social media or in person.
Offer your customers exclusive products or services to let them they you care about their experience. A positive experience will help your brand attain growth far easier when you’ve inspired loyalty.
- Improved customer relationships
Several studies have found if you treat customers well, there is a less likely chance of them switching over to a competitor. A study by XM Institute found loyal customers are five times more likely to purchase again. On the other hand, if your customers are feeling unappreciated, they will most likely switch over to your customers.
- Improved branding
Providing extraordinary customer service is a great way to improve your marketing strategy and brand. This is because when a customer has a positive experience, they will very likely share their feedback about your services or products with you.
This, in turn, enables you to use their feedback to your products or services, as well implement new ways to enhance the overall experience.
- Empowered employees
Investing in customer experience starts with your employees. In fact, a study found companies that excel at customer experience have 1.5 times more engaged employees than less customer-focused companies.
Customer experience is vital for any business to succeed. With more than two-thirds of companies competing on customer experience, establishing your brand as the default authority, even in a saturated market can do wonders for your business.
It may seem like an unnecessary cost at a time when many companies are cutting their budgets but investing in the development of a customer experience program is vital to your long-term success.