“Customer experience is the next competitive battleground. It’s where business is going to be won or lost.” In today’s era, the customer is the king and the biggest game changer for any business. In fact, companies who deliver an exceptional consumer experience achieve higher customer satisfaction rates, decreased customer churn and enhanced revenues.
So what exactly is customer experience?
Customer experience refers to customers’ perception of how your business treats them. These perceptions affect their behavior, leading to memories and feelings that can drive their loyalty. As per the Walker study, customer experience will surpass price and product as the key brand differentiator by the year 2020.
Why is it important?
Customers wish to be treated well, respected, understood and get what they want. They just want a good experience and an assurance of having the same good experience every time they get in touch with your business. They are empowered like never before, and great experience instills trust and boosts revenues. Leaders in customer experience deliver on an average 17 % of revenue growth as compared to the ones who lag behind in it, delivering just 3% over the same period.
Providing the right customer experience can help you build meaningful relationships with your customers. The experience you provide to your customers is a reflection of your entire business. It is not a single moment when they purchase from you but is a culmination of every interaction they have with your company, contributing to a brand image.
Consumers have the power to choose between the competing businesses, and research shows that 55% of the customers are willing to pay more for a guaranteed good experience.
How will it help your business?
Let’s walk through the benefits your business will be able to derive by offering a superior customer experience.
1. Competitive Advantage
Getting a competitive advantage has become important for all businesses operating in today’s environment as there are myriad of competitors providing the same products and services.
As a business, you will be able to differentiate yourself from the crowd through customer experience as products and services do not suffice to create a brand recognition or get a competitive gain. Customer experience offers a platform where instead of comparing purchases based on price alone, customers consider the experience aspect as well.
You can come out with a customer-centric strategy and stand out from your competitors, ensuring your customers become your brand advocates.
2. Customer Loyalty
Customer loyalty is built through good customer experiences that lead to customer delight, and not through loyalty cards or discounts and schemes.
Customers who feel they are valued by the businesses are more likely to stick to them and exhibit higher brand loyalty than customers who have a poor experience. Consumers with repeated, positive interactions with a business are more satisfied with its services. It makes them feel appreciated and valued, which in turn encourages them to continue doing business with a particular brand. Acquiring a new customer costs seven times more than maintaining an existing one.
A superior customer experience makes customers recognize your business and think that they might not have the same experience with a competitor, therefore not taking the risk of switching over to others. You can deliver an enhanced customer experience by optimizing each interaction and building an engaged customer relationship.
3. Customer Advocacy
Word of mouth is considered to be the most powerful marketing tool and also the most effective form of advertising. It can help you attract new customers, engage the existing ones, and strengthen your brand.
Good customer experience makes for a happy customer, and a happy customer will advocate your brand. By focusing on creating incredible customer experiences and working on taking your business above and beyond, you are creating an advocate out of every customer.
4. Personalized Relationships
Customers want to feel that they matter to the businesses, instead of being a part of nameless and faceless mass of buyers. An excellent customer experience delivered by initiating communications tailored to each individual customer can strengthen relationships with them.
Businesses send personal electronic communications and offers to their customers to ensure that their messages stand out from their competitors and reach their target audience. By offering a personalized customer experience, you have a better chance of building rapport with your customers and increasing their trust. Businesses that can deliver an incredible customer experience exhibit this human touch, which lead to enhanced loyalty and a long-lasting relationship.
5. Customer Satisfaction
Customer experience is a great way to exceed customers’ expectations. Businesses have to be reliable and deliver what they promised. By delivering what you promise and going an extra mile, you can delight your customers, which can lead to increased customer satisfaction.
As per a survey, a totally satisfied customer leads to 2.6 times as much revenue as a somewhat satisfied customer and 14 times as much revenues as a somewhat dissatisfied customer.
Every business imparts a certain message, tone and voice, and expectation to the consumers. It promises a certain experience, directly or indirectly about what customers can expect from the brand, which is important to be met for its success. Observe your customers and live their journey, which can help you to truly understand what would make their experience incredible and delightful.
In this competitive era, customer expectations are continuously rising at a much faster speed than the rate at which customer experience is being improved. Customers expect the best experience at every interaction they have with your business. So how can you create a great customer experience to make them come back to you again? We are here to help you in these efforts, to understand your customers in a better way to deliver them an amazing experience.
Competitors can easily deliver similar products and services like yours, but it is difficult for them to deliver the experience that you can create for your customers, which reflects everything your brand stands for!