Customer experience (CX) has emerged in recent years to be one of the key elements and determinant of consumer sustenance and growth. It is defined to be the consumer’s feeling and perception about a company’s products, employees, channels or systems gathered from the one-off and collective interactions of the customer with that company or brand. It is essentially customer interaction and their ensuing perception of a company.
These interactions are crucial as they shape the customer’s perception. They could also occur once, multiple times and anywhere in the customer’s life cycle. Such touchpoints could be during a live chat, self-service situations, or while conversing with a customer support agent.
Companies are beginning to leverage technology to meet the ever growing needs of their customers across various channels. CX is a unified concept as all members of a company are involved in creating this experience for their customers.
A business is nothing without its customers, and customers will not be loyal to a business without positive customer experience. Here are some reasons why customer experience is important:
Reducing Customer Churn Rate
Various researches have established that the cost to acquire a new customer is greater than the cost to retain an existing customer. It is highly unlikely that a happy customer would leave one brand for another. Positive customer experience across all touchpoints in the customer’s journey is a crucial factor in having a loyal customer base.
Reinforcing Brand Preference
When customers are treated courteously or pick up on other personalized experiences, they are more likely to become loyal to that brand. Reinforcing brand preference demands that existing, new and prospective customers are treated with this level of professionalism. Consequently, smart brands and companies focus on enhancing their customer experience at every stage in the customer’s life cycle and with every encounter.
Increasing Revenue
Loyal customers often help a company or brand increase their sales by promoting the products/services through word of mouth. This is one avenue of increasing revenue and generating free publicity that companies can consider. And the more positive the customer experience is, the greater that chances of the brand being promoted by the customer and making more sales.
Promoting Customer Advocacy
There isn’t a better brand ambassador for a company than a satisfied, loyal customer. This customer will go out of their way to put in a good word for companies without requesting for payment. To such persons, the memorable customer experience is enough payment.
Shaping Customer Perception
The customer experience of a client creates a perception of that brand that sticks in their mind. A mental image of the brand is created, and this could be in favor of or against the brand. Smart companies understand the power of first impressions and put efforts into making all customer experiences to be positive and memorable.
The business world is very competitive, and every product or service provider needs loyal customers. The effect that customer experience has on a brand in this regards is so immense that it cannot be taken for granted. CX has proven to be the key differentiator that can make or break a brand.
