The Value of Customer Experience in today’s world

October 16, 2020 at 5:00 AM
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Managing Customer Experience is a leading priority that every business must consider as there are no doubts that improving customer experience can help you improve your business performance; however, it may not be as easy to see the value of CX as it is to see the ROI of other business investments. Executives often choose not to invest in improving Customer Experience even when there is clear evidence of its benefit. In this article, we make our case that without a proper customer focused strategy, businesses simply can’t survive. In this world, where commodity traps exist, too many similar products and choice crises affect consumer behavior and it becomes important to stand out in order to succeed as a brand. It's glaringly obvious that the only way out of this trap is to exceed customer expectations and improve customer experience! Let’s talk about a few facts that might help you gather insights as to why it is important to work on improving your CX game, according to Forbes.

Companies with a customer experience mindset drive revenue 4-8% higher than the rest of their industries. Customer experience (CX) is the new marketing battlefront. More than two-thirds of marketers responsible for CX say their companies compete mostly on the basis of CX, according to the 2017 Gartner Customer Experience in Marketing Survey. And in two years’ time, 81% say they expect to be competing mostly or completely on the basis of CX.

Platforms like Gartner and Forbes have concluded, according to various published articles, the vitality of implementing strong CX strategies in order to supersede the market competition and win in terms of profit and ROI.

With total retail sales in the United States set to hit $5.68 trillion by 2021, the competition to win customers has never been more intense. Consumers expect highly personalized shopping experiences from retailers and are willing to spend more money when brands deliver targeted recommendations.

A Walker study found that at the end of 2020, customer experience will overtake price and product as the key brand differentiator.

To be precise, customer experience can be described as the perception created by your customers in exchange for your offered product or services. How you treat your consumer base leads them to build perceptions about your brand or company. These perceptions further affect their behaviours which also drives their loyalty. It’s not complicated, the better you treat your customers the more likely they are to leave positive feedback because you have gained their loyalty and trust. Customer satisfaction is the key to a successful business, happy customers give positive feedback and help you build a stronger foundation. It does not matter which industry you belong to or what kind of business you’re involved in: working on personalizing your services or product in order to improve your customers experience leads to increasing customer retention, satisfaction, and ROI.

Brands with superior customer experience bring in 5.7 times more revenue than competitors that lag in customer experience. 73% of consumers say a good experience is key in influencing their brand loyalties. 77% of consumers say inefficient customer experiences detract from their quality of life.

Adding a human touch to your services helps your customers to feel heard and connected with the brand they are investing in. It is easy to feel lost among the infinite choices available in the market. It's the experience that you offer that helps your customers stay grounded and loyal. Brands often face huge losses just because of their lack of empathy towards their consumer base: they may offer better products than their competitors but if their after-sale services or in-store experience is not up-to the mark, they often end up losing more than just business.

In simpler terms, if you are considerate enough to care about your customers they will return the favour one way or the other.

At Dropthought, we believe that to build a sustainable relationship with a customer, we must value their feedback. We believe in building a situation based and feedback centric client engagement plan that will not only help businesses to leverage the data collected abundantly, but also can turn into a long-lasting opportunity to keep your customers intact and keep the revenue bar up and running. Your customers can express their opinions through the surveys and provide suggestions about your CS team, product onboarding, and more throughout their customer journey. By doing this you are better able to retain your current customers, identify key customer experience, and revenue.

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