Customer experience is a key differentiator that can augment the growth of your business. Well, enhanced customer experience can help you to earn an enviable reputation as a brand across the market.
Thus, Customer experience is a game-changing element that ensures various exciting lucrative opportunities along with the other positive returns.
Simply put, customer experience is an expression through which you come to know that how your customers perceive their interactions with your product/service or brand. Over the years, customer experience has become the key brand differentiator. Positive customers’ perception of the brand has become a crucial factor that determines the success of your business. Customer experience ensures you with an extensive scope of product/service enrichment. Furthermore, customer experience can easily make or break a business. With the growing prevalence of customer experience businesses have started taking Customer Feedback to improve their product/services and their customer experience.
Did you know – US businesses lose up to $62 billion due to poor customer experience.
Source: Vonage Business
Explore 5 key reasons to invest in customer experience. Through these 5 key points, you’ll get to know how CX helps you to augment your customer base along with the conversion rate of your business.
Why Invest in Customer Experience
- To ensure sustainable business growth
- To strengthen your customer relationship
- To increase customer loyalty and retention
- To make better business decisions
- To Reduce Customer Churn Rate
1. To Ensure Sustainable Business Growth
Every business owner commences business with the motive to earn great revenue and profit. Ultimately the business growth comes from customers, so it matters a lot how your customer perceives your product/service or brand. When it comes to customer experience, customers expect something astoundingly exceptional.
According to research, around 75% of customers expect to have a reliable user-experience with the brands through any platform (social media, mobile, or personal).
Enhancing CX has become the need of the hour to survive in the competitive market. If you deliver the out-of-the-box experience in the form of product/service and other customer support services, they are ready to pay you more.
According to the Walker Study, 86% of buyers are likely to pay more for a better CX. In addition to this, it is being predicted that by 2020, CX will be the key differentiator that overtakes the price of the product. As a brand, if you achieve excellence in serving high-end CX, it cannot only leave you with a better conversion rate but also ensure you with sustainable business growth.
Did You Know?
Companies that have systematically been leaders in the customer experience have shown to receive far better results in terms of growth and profitability when compared to those that did not.
Source: Watermark Consulting
2. To Strengthen Your Customer Relationship
Exceptional customer experience can not only bring growth with it but also augment the customer relationship with you as a brand. To enhance your customer relationship, you need to deliver an impeccable product/service that provides high customer satisfaction. If you treat your customers with exceptional CX, they will spread a good word of mouth and levitate your brand image in the market and help you expand the customer base.
Different researchers have claimed that a customer who is satisfied with their experience with a product or a service in one company would rarely prefer to switch to a different brand.
If you want to strengthen your relationship with your customers, then take regular feedback. Taking feedback regularly is the best practice that provides you with the opportunity to stay in touch with your customers.
70% of companies that deliver exceptional customer experience use customer feedback.
If you regularly track customer experience through feedback, it can help you to revamp your product/service according to their requirements and improve your customer relationship.
3. To Increase Customer Loyalty and Retention
Customer retention rate affects the profit potential of the business. If your customer retention rate is high, it will also augment revenue as well as the profit rate. Thus, if you want to improve your customer loyalty and retention rate, then you should for sure invest in Customer Experience. Usually, customers want quality-grade products/services at an optimal price, but if you are providing the same along with the extra value, they are willing to pay more for the same products/services. This, in turn, enhances both your conversion and profit rate.
A 5% rise in customer retention rate increases by 25% to 95% profits. Thus, retaining your lost customers can augment your profit rate drastically.
Source: Frederick Reichheld (inventor of NPS)
The Digital Trends 2018 report by Adobe highlights optimizing customer experience as the single most exciting opportunity for the coming year. So, if you want to improve your CX efficiency, then start taking regular customer feedback because a healthy & positive feedback history ensures high customer loyalty and retention rate.
4. To Make Better Business Decisions
Customer feedback is like killing two birds with one stone. If you regularly take customer feedback, first, it will help you to keep your eye over customers’ customized requirements and fulfill them. Secondly, it helps you to improve the user experience of your customers. The data collected from the feedback is actionable data that can help you track the customized requirements of your customers (promoters, detractors, and passives) and fulfill them quickly without any delay. This will further help you to take quick and precise business decisions without investing more resources and time. This, in turn, ensures innovation and better branding.
5. To Reduce Customer Churn Rate
To achieve the sustainable growth of the business, you need to understand the concept of Customer Churn Rate. It is not the happiest measure, but crucial metrics to evaluate the growing business. Simply put, it refers to the percentage of customers that stopped using your product/service during a certain period. For instance, if you start your quarter with 600 customers and end at 580, your churn rate is 5% because you lost 5% of your customers.
If you deliver your customers with exceptional customer experience, they can pay you more and will not prefer to switch to a different brand. Thus, exceptional CX cannot only reduce the customer churn rate but also elevate overall business growth and success.
Every organization and business-unit should keep one thing in mind that ‘Customer is King’. If you are giving priorities to your customers and their requirements, then you are on the right track. It is only your customers who can help you to earn an enviable reputation across the market. To boost the satisfaction level of your customers always create high-end product/service solutions. This will improve the NPS Score and enables you to deliver exceptional customer experience beyond the level of their imagination.