Updated: Sep 16, 2020
We now live in a Customer Experience economy
In a world of rapidly evolving omni-channel marketing and demanding customers, no business can afford to stand still. In fact, the pace of digital disruption, innovation, and increasing customer control means your business is either moving forward or falling behind.
80% of companies believe they are delivering a great customer experience but only 8% of customers believe they are receiving a great Customer Experience. Data shows that the experience gap is widening rather than closing. Customer needs and touchpoint considerations are ever evolving. What was correct last year might not be the priority now.
The fact that Customer Experience is essential for a successful market position has been accepted by a large number of companies. Numerous studies in recent years have proven this: As early as 2016, almost 90% of the top 500 companies surveyed (according to Forbes) assumed that improving the Customer Experience was essential for future entrepreneurial success and an improved brand reputation. 80% of companies also assumed in a Gartner survey of 2018 that they would mainly compete on the basis of the Customer Experience in the future.
But not only companies seem to regard the Customer Experience as the Holy Grail. Customers also regard it as essential for their purchasing. In a PwC study, for example, 54% of the participants stated that they would not come back a second time after a bad customer experience. Approximately 32% of customers are prepared to say goodbye to a beloved brand as a whole, even in the case of a single very bad experience.
What is Customer Experience?
In summary CX is not transactional — it’s relational
CX puts you in the shoes of your customer. It is the sum of ALL of customers’ activities in pursuit of solving a problem, including interactions with a brand and its offerings.
In CX we consider and analyse the combined interactions a person has with your brand and others when they are on a mission to solve a problem. We start with the person and their goal/mission. We study the journey a person goes on, mapping each and every interaction they have, what they are experiencing and how they are feeling.
That journey doesn’t just refer to marketing, it includes everything pre, sale and post that they experience whilst on their mission.
Successful Customer Experience is about showing up for the customer when and where they need you, with ease and consistency on their part.
CX gives you a competitive differentiator
Many growth marketers focus on tools and strategies designed to bring customers through doors and onto websites. Only a few, however, realise that an integral part of sustaining growth is avoiding the churn of existing customers.
Many organisations understand that Customer Experience (CX) is important for retention and brand affinity. But, when it comes to investing in tools and services to do this, many businesses fail to see the long-term ROI that CX technology and strategy can deliver — even though the evidence is apparent:
Increasing customer retention rates by 5% increases profits anywhere from 25% to 95%. (Bain & Company, Prescription for cutting costs)
86% of consumers are willing to pay more for a better customer experience. (Walker Customers 2020: A Progress Report)
It costs 6 times more to attract a new customer than it does to keep an old one. (TARP)
68% of customers stop shopping with a brand because of an attitude of indifference towards the customer. (TARP)
Understanding your customer experience has an impact on your bottom line by, “achieving revenue gains of 5% - 10% and reducing costs by 15% - 25% within two or three years”. (McKinsey)
In the digital marketplace, customers are even more demanding than ever before. Over 50% of customers say they’ve switched companies solely because of a poor user experiences. (Clicktale Digital CX Report 2019)
Companies with the strongest omni-channel customer engagement strategies enjoy a 10% Y-O-Y growth, a 10% increase in average order value and a 25% increase in close rates. (Adobe & E-Consultancy, Total Economic Impact Study 2020).
As you can see, Customer Experience is an essential component of growth hacking and can be the difference between increasing year-over-year profits and underperformance. The good news is that it doesn't matter what kind of business you're in - improving the experience for your customers has been proven (time and time again) to increase retention, satisfaction and revenue.
How to become CX orientated
Business leaders should ask themselves if their company is truly set up to effectively manage the Customer Experience. Unfortunately, more often than not, the answer is no, as companies maintain a traditional organisational structure.
Customer Experience is all about listening to your customers and basing many of your business decisions on the feedback collected. While there are many components of Customer Experience, managing the 5 things listed below can kick-start your customer-focused growth efforts.
Ultimately, becoming a customer experience business ensures that a large part of your growth marketing efforts are predicated by the needs of your customers. This helps define many business strategies and can make deciding where to invest resources easy and effective.
Ready to start growing?
It’s time to choose a customer experience program that works for you and, more importantly, your customers.
Remember it is not data that drives CX but the insights from that data.