When you make your customers happy, they’ll keep coming back for more.
We live in a time when customers are always willing to pay for something that provides a great experience. We’re not the only ones saying this: Numbers are backing this claim as well. American Express found that 86% of customers are willing to pay more for a better customer experience (CX). Another report stated that a business that earns over US$1 billion each year could expect to earn an additional US$700 million on average within three years of investing in customer experience. What a big number!
To be successful, companies need to implement customer experience strategies that increase customer satisfaction rates and decrease churn (that a customer stops using your products or services). A company’s customer experience strategy encompasses everything from designing an eye-catching website and training your employees to handle customer inquiries swiftly. In short, it’s the sum of all the interactions a customer has with your brand. In this article, we discuss how customer experience strategy can help your business grow.
It improves customer acquisition and retention
If your business is experiencing low customer retention, it could be because you’re not giving them a compelling enough brand experience. If you provide excellent customer service, you’ll be able to retain the ones you already have while acquiring new customers, bringing about a big return on investment (ROI).
As per a report by global management consulting firm Bain & Company, companies who work to retain their customers have an increase in profits of over 25%, which can rise to 95% in some cases.
Amazon is a good example of demonstrating what an outstanding customer experience strategy can offer. The tech giant has shown that a customer-centric attitude and taking the time to deliver genuine value to the customer are worth it. They’ve spent years creating a culture that “puts the customer at the center of everything they do”. As per Bezos, Amazon spends much of its profit on projects that bring the company closer to its customers. It is no surprise that Amazon is a leader in digital commerce today.
Referrals and testimonials from retained customers can also help you appeal to other potential buyers and acquire new leads. When your customers are happy, they’ll tell others. Studies show that 93% of people trust brand and service recommendations from friends and family. Take Tesla as an example; it has built a robust customer-centric referral program, from which it generated a 40x ROI with no marketing budget at all!
Your teams can better fulfill the expectations of customers
Most companies fail to meet customer expectations, leading buyers to leave for their competitors. As such, it’s important first to determine what the customer expects from you and how you can meet their needs while creating a seamless experience. It’s not rocket science: a good customer experience comes from asking your customers questions, listening to their responses and taking action on their feedback.
To achieve this, you need a well-run customer experience operation to better understand your target market and what motivates them to become your paying customers. Your team can then use this information in product design, marketing campaigns and the overall direction of the business. In other words, customer experience provides valuable insights that help companies to stay ahead of the competition and fulfill the ever-changing expectations of customers.
So, what is a good client experience?
Creating a positive customer experience should be a top priority for any business. However, many business owners are at a loss in this aspect, failing to understand that every customer has unique needs. Here are some pointers to help you build a seamless customer experience.
First—a no-brainer—you have to make sure that you provide high-quality products and services. Being transparent and direct about your offerings and keeping your website up-to-date is essential to acquiring and retaining customers. If your customers are not happy with what they receive, they will not return.
Second, you must quickly respond to any concerns or problems that customers may have. By being responsive and taking care of any issues right away, you can show that they care about their customers and their experience.
To do that, you need to ensure that your employees are properly trained to handle customer inquiries and complaints. This includes helping them learn as much about the company and its products as possible. They should all know the best practices when providing support through each service channel, such as email, live chat and social media. Also, give them the authority to provide independent advice without seeking your approval every single time.
Besides, you need a good customer relationship management (CRM) system. Having one will give you more control over how your brand interacts with customers and help you better calculate customer lifetime values (how much a customer is worth to your business over the entire period of your relationship). This feedback and reviews are crucial to help you reflect on your current strategies and design new ones when needed.
A great customer experience strategy will positively impact your business in many ways. It will help you attract and retain more customers, boost your sales and profits and improve your overall brand reputation. If you’re not already focusing on delivering an exceptional customer experience, now is the time to start.
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