Introducing User Segmentation — Deliver surveys and feedback forms with precise targeting using powerful User Segments. Learn more ➝

Get it For Free
Request a Demo

Book a Demo with Zonka Feedback


Get Started for Free

Enter primary contact's full name
Enter primary contact's email address
Choose a password (at least 6 characters, no spaces, case-sensitive)
  • Your account is being created in the
By proceeding, you agree to the Terms of Service and Privacy Policy.
Or, sign up with email

user-picsrating-star crowd-logo captera-logo Rated 4.8/5 stars

Benefits of Customer Experience

Customer Experience is a determining factor to the sustained growth of any business. A remarkable customer experience encourages brand advocacy, promotes customer loyalty, retains customers, improves customer acquisition rate, and reduces churn.

The growing digital facilities and internet have given the power to customers to educate themselves about the products, services, or brand and then make purchases. And over the years, customer experience has become the key differentiator for customers when choosing a brand or business.

Elevate CX with Customer Feedback🔥

Collect real-time, in-moment feedback at all touchpoints in customer journey and leverage feedback insights to transform customer experience.

Get Started

Thus, it is important to deliver a remarkable experience and encourage your customers to continue doing business with you

For example, Coca-Cola is arguably one of the biggest experience-based brands of all time. They are striving to create an exceptional brand experience for their customers. Along with the quality and taste, they always try to delight their customers with mind-blowing campaigns.

Coca-Cola plans a hello happiness phone booth campaign in Dubai to ensure an unforgettable experience for their customers. This campaign benefits thousands of South Asian laborers who arrived in Dubai to work and have not heard their family’s voice even for a couple of minutes. Thus, the company has set up a special booth that accepts Coca-Cola bottle caps instead of coins for a free 3-minute international phone call.

In another of their campaign, Coca-Cola installed a hug machine to bring ‘doses of happiness’ to the public of Singapore and has received an ‘amazing reaction. This vending machine says "Hug Me," and on hugging the machine, a free Coke comes out that brings happiness to the customer’s face.

Benefits of Customer Experience

There are a plethora of benefits to customer experience. Let’s explore five key reasons to invest in customer experience.

  1. To ensure sustainable business growth
  2. To strengthen your customer relationship
  3. To increase customer loyalty and retention
  4. To Reduce Customer Churn Rate
  5. To make better business decisions

1. To Ensure Sustainable Business Growth

To earn great revenue and profit, you need to understand how your customer perceives your product/service or brand. For this, you can measure customer experience through customer feedback. It helps you listen to your customers’ voices and prioritize the strategies accordingly to improve products and services. Thus, an improved level of customer experience ultimately improves your customer retention, leading to exponential business growth.

2. To Strengthen your Customer Relationship

A good customer experience augments the relationship of your customers with your brand. When you ask for feedback from your customers, consider their suggestions, and implement them in your business, you care about them and want to improve their experience. This, in turn, improves customer loyalty and enhances your customer relationship. If you treat your customers with exceptional CX, they will spread good word of mouth and levitate your brand image in the market and help you expand the customer base.

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 and the profit rate. Thus, if you want to improve your customer loyalty and retention rate, you should invest in Customer Experience. Usually, customers want quality-grade products/services at an optimal price, but if you provide the same and the extra value, they are willing to pay more for the same products/services. This, in turn, enhances both your conversion and profit rate.

4. To Reduce Customer Churn Rate

Customer Churn Rate is not the happiest measure but a crucial metric 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 an 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.

5. To Make Better Business Decisions

Customer feedback is like killing two birds with one stone. Regularly taking customer feedback will help you keep your eye on 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. It will further help you to make quick and precise business decisions without investing more resources and time. This, in turn, ensures innovation and better branding.

How to Measure Customer Experience?

It is clear that: customers are the best source for growing brand awareness in the market. So, measuring customer experience helps you determine how well you're doing well and the scope of improvement. There are majorly four ways to gauge customer experience.

1. Deploying Customer Satisfaction Survey Results Effectively

Customer Satisfaction or CSAT is the Customer Feedback Metric that enables you to gauge the satisfaction level of your customers. You can effortlessly track and monitor your customers’ experiences after a particular transaction or at touchpoints like post-purchase, post-delivery, or post-a meal.

Customer Satisfaction is calculated from the simple CSAT question - “How satisfied were you with your experience?” Through this metric, customers range their satisfaction level either on the scale ranges 1 – 3, 1 – 5, or 1 – 10 or on the agree/disagree scales, stars, or smileys. CSAT can boost the customer satisfaction rate and provide an opportunity to improve the organizations’ products and services.

The significance of conducting satisfaction surveys depends on how effectively you are deploying CSAT survey results. CSAT survey data clearly understand your customers’ satisfaction level after using your products or services or after specific interaction with you as a brand. This will help you know the strengths, weaknesses, opportunities, and threats associated with your business.

2. Measuring Net Promoter Score (NPS)

Net Promoter Score is a metric first developed in 1993 by Fred Reichheld and later adopted in 2003 by Bain & Company and Satmetrix to measure customer loyalty to your brand by predicting customer purchase and referral behavior.

With a simple NPS Question - “On a scale of 0-10, how likely are you to recommend us to your friends or colleagues?”

In the NPS question, customers rate their willingness to recommend the company and its products and services on a scale of 0-10. Based on their responses, customers will be segregated into three categories:

  • Detractors - These are customers who gave a score of 0-6. They are disloyal to the company and likely to badmouth the organization.

  • Passives - These are customers who gave a score of 7-8. They are moderate towards the company and may switch if a better option is given.

  • Promoters - These are customers who gave a score of 9-10. They are very loyal to the company.

You can calculate NPS easily using a standard formula: % of Promoters - % of Detractors. 

You can effectively use NPS Survey data to approach your customers and deliver an exceptional customer experience. NPS helps you identify and address customer issues and close the feedback loop; identifying promoters helps further your marketing and referral programs. Therefore, NPS is a metric you should continue to measure even if you reach your goal Net Promoter Score as it will help you grow more and grow better.

3. Measure the Customer Churn Rate

Churn rate refers to the number of customers that don't return to your company after purchasing due to a bad customer experience. But your churned customers or disloyal customers are a great source of learning and product or service improvement to spare you from potential blunders. Thus, churn rate is a great indicator to check the performance of your business in the market.

To calculate Churn Rate use simple churn rate formula: Churn Rate % = Number of Churn Customers ÷ Total Number of Customers ✕ 100

Total Number of Customers = Number of existing customers + Number of acquired new customers - Number of churned customers.

4. Analyze Customer support ticket trends

Another very popular way to measure customer experience is CES Surveys. This specifically measures customer experience after a service interaction. For example, post a complaint ticket that has been raised by your customer and resolved by your team members and agents; you can send a CES Survey to ask customers for their feedback about the ease of getting their issue resolved. CES feedback after service interaction, after a ticket has been closed, or a service has been executed, you can get instant feedback about the experience your company is creating for the customer and how easy your staff is making your customers' experiences.


Written by Archit

Oct 11, 2021

Get the latest from Zonka Feedback

Get the best of Feedback and CX News, Tips, and Tricks straight to your inbox.

Request a Demo

You're just a few steps away!
Please share the following details.

Request a Demo

Download your Free NPS eBook