You would notice that it takes one bad experience to tarnish the reputation gained by a hundred good experiences, making it one of the most crucial reasons to perfect your customer service!
According to research, improving customer experience can increase revenues up to 8%. This improvement in revenue comes from repeat customers. Happy customers are much more likely to become loyal to your business.
They contribute with positive reviews, which are by far the best marketing you can have. And as we all know, word of mouth spreads like wildfire!
Read on as we elaborate on why it’s vital to prioritize customer experience:
Things To Know About Customer Experience
The term customer experience refers to how consumers receive your product and service. Both things are continuously judged throughout the buying process.
It creates your brand image and also affects the bottom line. And the things that directly impact customer experience (also known as CX) are the product and the people.
Have you ever been astonished by a product when it exceeds expectations? Or have you been overjoyed by the attention offered by a customer support representative when trying to solve your issue?
These are some of the areas that leave a lasting memory for customers.
Why Is It Important To Focus On Customer Experience
According to the Harvard Business Review, here are some reasons why customer experience is essential to improve:
- Great customer experience can lead to higher sales: Customers who had an excellent experience spent on average 140% more than those who had sub-par experiences
- Great customer experiences lead to higher loyalty: Research shows that customers with an excellent experience have a 74% chance of staying a year for subscription-based businesses. In contrast, customers with a sub-par experience only have a 43% chance to remain subscribed to the industry for a year
- Excellent customer experience reduces cost for the business: Initially, a company may require additional investment to improve customer experience, but is it worth it. Customer churn and responding to lousy customer reviews are often more costly than a system set to deliver excellent experiences from the start. Sprint reduced its customer service costs by as much as 33% after shifting to a customer experience mindset.
With that said, it is imperative to improve your customer perception to capture a significant segment of your market, especially if you suffer from tough competition.
Ways To Evaluate Customer Experience
We’ve highlighted some areas to focus on to help you address the problems your customers face, leading to a negative experience:
Derive Insights From Satisfaction Surveys
Using surveys to monitor satisfaction will provide valuable information about customer perception, especially after crucial points in the customer journey – for instance, test driving a car.
Therefore, the two most popular tools to measure customer satisfaction are:
Net Promoter Score (NPS)
This measure is calculated by asking customers how likely are they to recommend you to their network. It is usually done on a scale of zero to ten. An analyst can then break this information into chunks called:
Using these chunks, we can analyze customers’ specific experiences to derive factors that contribute to a better experience.
Customer Satisfaction (CSAT)
The CSAT is measured by simply asking if the customer was satisfied with the product or service. After this, you can calculate the percentage of satisfied customers. Additionally, you can also ask them reasons for their satisfaction or dissatisfaction.
Reasons And Rate At Which Customers Leave
Part of doing business is seeing customers leave. It is imperative to know why customers are leaving so that you can avert it in the future.
We can do this by determining our churn rate, the measure of when customers stop doing business with you.
It would be beneficial for you to regularly look at movements in your churn rate and analyze why it is happening. Upon figuring it out, you can devise strategies to prevent similar cases in the future.
Examining Customer Support Tickets
Every day, customer support representatives work to resolve service issues. If we find reoccurring problems, we can go over the reasons and provide solutions.
This not only helps provide a better customer experience but also reduces the number of support tickets received.
Ways To Improve Customer Experience
Now that we’ve discussed how to find problems with our customer service, let’s look at ways to fix them:
Using Customer Input For Product Improvement
An exciting way to improve customer experience is to involve customers in the process! You can achieve this through various platforms where customers can actively provide suggestions:
- Community pages
- Social media platforms
- Email surveys
However, this does not mean you have to incorporate all those changes/suggestions. Although, it is worth your time looking into it, especially in the event of repeat suggestions.
Omni Channel Strategy For A Superior Customer Experience
An Omni-channel strategy focuses on delivering a seamless experience using an integrated shopping experience online and at brick-and-mortar locations.
Having an Omni-channel system provides you with a critical analysis of how customers interact with your systems at every interval of the customer journey.
Most customers today expect a consistent Omni-channel experience between different customer touch-points such as online and offline.
Using customer analytics
With recent advancements in artificial intelligence (AI) and big data, it has become much easier to acquire customer data and gauge detailed metrics such as demographics, behavior, etc.
Therefore, most modern marketers know the benefits of using all of these tools simultaneously for the best results.
Delivering a great customer experience is not an easy task. Still, we can quantify customer experience using data and AI.
These tools provide a window into how customers interact with your brand; this is where you look for ways to improve customer experience.
Encouraging Customer-Centric Culture
A study conducted by Deloitte and Touche revealed that customer-centric businesses earn an average of 60% more profits.
Prioritizing on it will help you decipher behavior and preferences quickly. Using this information, you can time your offering for the right customer, which would elevate the customer experience.
An example of this would be add-on products such as insurance for a person who just bought a car.
Technology and business have evolved over the past few decades; the days of providing an offering and hoping it would sell are long behind us.
Customer experience keeps you in the game in the modern-day and age, and those who choose to ignore it find out its importance the hard way.