With the competition in the markets intensifying, it has become increasingly tough for a brand to differentiate itself from its competitors. However, there is a solution to this conundrum too. According to a study by Walker, customer experience will overtake price and product as the key brand differentiator by 2020. Further, a research conducted by Forrester demonstrates that 72% of the businesses considered improving customer experience as their priority. This goes to prove that Customer Experience is a key brand differentiator and is the answer for any brand to outshine its competitor.
Customer experience is the practice of providing customers experiences in a manner that exceeds their expectations, increasing the customer satisfaction levels. In today’s ultra-competitive scenario, it has widely been said that customer experience is the next competitive battleground. With more and more customers ready to pay a little extra for an enriched customer experience, we provide you 8 solid reasons why customer experience is important for growth.
The relationship a company holds with its customers is more than just about improved ratings and reduced service wait times. Understanding the customer experience requires doing a careful analysis of the interaction of customers at every touchpoint. Starting from when the customers contemplate purchasing to when they finally purchase a product or a service, everything needs to be paid attention to.
So, customer experience is not just about customer satisfaction or customer service; rather, it is a combination of both of them. Businesses must put the needs of their customer first and ensure that they provide the same experience to the customer across all touchpoints of interaction. When the customers are satisfied, the cost of serving them reduces. Their increased loyalty ensures that they recommend the brand to their acquaintances, increasing a brand’s customer base massively.
One of the most important aspects of providing a great customer experience is making the entire purchase process so engaging that the customer comes back and brings his friends and folks too. A referred customer costs less to the company in terms of acquisition and has a greater potential for staying with it. If a brand is successful in delighting such customers, it will result in a chain reaction of bringing in many more referrals.
In simple terms, customer churn rate is the percentage of the customers that cease or end a relationship with any particular company. It is but obvious that a company may lose some of its customers on a daily basis. However, the key is to keep that rate much less than the number of new customers buying your service. Providing a great experience to customers can help to reduce churn rate.
According to a survey conducted by International Council of shopping centers, 74% of the millennial’s said that they would deflect from a brand if they received a negative customer experience. In today’s intensely competitive world, customers consider loyalty as an archaic concept and do not mind shifting if they are provided with a better experience elsewhere. However, loyal customers are needed for any business to succeed. According to the Temkin Group, loyal customers are 5x as likely to repurchase than others.
Companies that do not focus on improving customer experience eventually lose a customer. Hence, it is imperative that brands provide a great experience for customers. With each positive experience, the customer builds trust in brand he is interacting with, increasing the scope of getting repeat business.
Every business today understands that thriving in an already crowded market is tough. However, one must remember that if the market is heavily occupied, the demand for that service or product is also high. While one way such businesses can differentiate themselves from others is through price regulation, it also means that there will be cutthroat competition to offer the lowest rates to the customer.
In such a scenario, a winning way would be if such brands can offer their customers something that is difficult for others to replicate. Here is where such businesses can successfully use customer experience to their benefit. If a unique and personalized experience is provided, the customer starts considering this brand as an integral part of his or her life.
The most prominent reason for a focus on customer experience is that it results in an increased revenue for businesses. Customers get inclined towards spending more money on a brand that makes it easy for them to do business. When businesses make an effort to make the experience better for them, they return the favor by spending some extra money from their wallets.
The key to high ROI lies in how valuable the customer finds a service or product and the experience associated with using it. An extremely rich and engaging customer experience makes them spend a little extra just to enjoy the convenience associated with it.
A research conducted by Earned Brand proved that the stronger the relationship between a consumer and a brand is, the better able a brand will be to weather marketplace disruptions as well as introduce new disruptions of its own. The proven way for any brand to experience success is by establishing meaningful and robust relationships with their customers. The customers must feel an emotional connection with the brand so that they always come back to make their purchases.
When brands share a positive and conducive symbiotic relationship with your customer, it would result in an increased lifetime value of the customer, which means that the customers generate more revenue for the brand. Consistent enriched customer experiences mean that the customer will keep coming back for more updates from your side.
All businesses today must look at more than just delivering outstanding customer experiences. The focus should be on exceeding the customers’ expectations. Customer experience is the next battleground and those that do not focus on it, are bound to be killed!
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