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Customer Experience

Customer Experience vs Customer Service: What are they, and how are they different?

March 09, 2023

Customer Experience and Customer Service both are your priorities to keep your customers happy and achieve business growth. Both are part of a customer-centric approach and are considered the same thing. Thus, both the terms are used interchangeably but are they the same things? No, they are different from each other.

Customer Experience refers to the holistic journey that customers take with your brand. At the same time, customer service is a part of an overall customer experience. When customers reach a business for support during their journey is defined as customer service. Thus, both are relatable to each other and can’t be done well without the other. 

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In this post, we’ll take you through Customer Experience vs. Customer Service in detail.

Customer Experience

Customer Experience is the customer's perceptions and reactions caused by interactions with business products and services. Customer Experience constitutes two important elements - Product and Customer Satisfaction. Both go hand in hand when it comes to delivering a next-level customer experience. With superior product quality and overall customer satisfaction, you can deliver an admiring customer experience.

Customer Service

Customer Service refers to the help or support that customers seek from your customer support team or agent to understand your brand or get their queries resolved. According to Salesforce, if the company’s customer service is excellent, 78% of consumers will do business with a company again after a mistake.

Various companies either outsource customer service or establish a strong customer service community that enables the team to stay in touch with your customers through Customer Feedback and help them discover ideas, suggestions to generate a new product and improve customer experience.

Examples of Customer Experience & Customer Service

Ensuring a better experience for your customers is not rocket science. All you need to do is carefully understand their requirements and serve them with what they want. Here is one situation-based example that helps you understand how and what to deliver to your customers to boost their experience.

Customer Experience

AirBnB is a great example to understand how to deliver a personalized customer experience. To ensure a better experience, they’ve segregated the audiences into two segments:

  1. Customers who want to rent out their place
  2. Customers who are looking for a place to stay

AirBnB ensures a simple search experience for both audiences on a single platform. It allows customers to become a host or book a place to stay. Additionally, it connects both buyer and seller quickly and enhances the customer experience.

Customer Service

AirBnB has thousands of customer service agents operating out of 20 physical locations worldwide, serving hosts and guests. Once the lodging has been booked, AirBnB starts offering 24/7 customer service to solve the customer issues. The team connects with customers in real-time via Live Chat, Phone, Email, SMS, and Social Media to listen and solve their issues within 24 hours. AirBnB also provides refunds (whenever required) to improve customer experience.

Importance of Customer Experience & Customer Service

It is clear that: Customer Experience plays a crucial role in your business growth. Let's explore how you need to grow your business:

  1. Helps you to Achieve Customer Loyalty

    A great Customer Experience generates more Customer Loyalty that subsequently leads to more loyal customers. Loyal customers are likely to spread positive word-of-mouth for your brand and recommend you to others. This ultimately gives you more business. Chris Luo, VP of Marketing of a loyalty technology company, states that improving customer loyalty can boost customer lifetime value by up to 30% or more.” It helps you to reduce customer churn and keep profits high to keep your business afloat.

  2. Helps you reduce Customer Churn

    Customer churn refers to when the existing customers (user, subscriber, or client) stop doing business with you due to bad customer experience and satisfaction. Thus, a high churn rate adversely impacts your business growth because on losing existing customers, you will focus on acquiring new customers, which is more expensive than retaining existing customers. Thus, it is important to improve your customer experience and retain your lost customers because 65% of a company's business comes from existing customers.

  3. Helps you increase profit

    Your customers are willing to pay more for a great customer experience. Thus, making your customer experience great can ensure you with the opportunity to increase your profit margin.

Customer Experience VS Customer Service

Since you’ve understood this very well, Customer Experience and Customer service are two different things. Let’s see how these are different from each other:

  1. Measures holistic experience vs specific interaction

    Customer Experience measures the overall customer perceptions of brand and business. It can be measured throughout the initial purchase, post-purchase, to repeated purchases and thus involves numerous touchpoints. Customer Service is a part of customer experience that measures the customers’ perceptions about the specific interactions, like closing a ticket, post-call, and help desk.

  2. Involves reactive vs proactive process

    Measuring Customer Experience can be done effectively by taking customer feedback throughout the customer journey. In comparison, customers can initiate Customer Service to know about the brand or get their queries solved. Customer Service involves various metrics like first-time resolution rate, average response time, etc.

  3.   Boosts ongoing relationship vs specific event

    Customer experience improves the ongoing customer relationship and helps your customers to keep coming back to your business. Whereas, Customer Service improves the customer’s perception of a specific event.

Learn more about the Customer Experience 


Written by Archit

Jul 27, 2021

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