Importance of Customer Experience Customer Experience

Importance of Customer Experience

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What is Customer Experience?

Importance of Customer Experience Customer Experience

Customer experience, also generally referred to as CX, refers to a customers’ overall perception of your brand based on their interactions with it throughout their entire customer journey. CX is focused on the relationship between a business and its customers. It is shaped by every interaction a customer has with a company across all its different channels. 

Great CX is integral to businesses for many different reasons. Within, today’s article, we will dissect the wide abilities of CX and will also take a look at a few different practices that can be integrated into organizations to enhance it.   

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The Importance of Customer Experience

Here are the key reasons for the importance of customer experience:

  • Customers will Pay More

Studies have shown that customers are willing to pay higher prices when provided with a good customer experience. CX, therefore, acts as a strategic asset that can be leveraged by businesses to boost revenue. 

  • Increased Customer Retention

Excellent customer experience will make an organization stand out from its competitors. This will result in customers being more loyal to the business and will stay with the business for even longer. 

  • Gives a Competitive Advantage

Customer experience can be used to gain a competitive edge within your industry as customers will prefer purchasing from an organization that provides them with a seamless experience. 

  • Higher Customer Lifetime Value (CLV)

Good customer experience will also contribute to boosting CLV as customers will stay with the brand for a longer amount of time and will make more purchases. 

Statistics on the Power of CX

Let’s take a look at a few statistics that reflect the power of customer experience:

  • According to CallMiner, American Businesses lose 35.3 Billion USD every year due to customer churn caused by avoidable CX issues such as fair treatment. 
  • According to PwC, customers are willing to pay a 16% price premium for a great customer experience.
  • According to Gartner, CX contributes to over two-thirds of customer loyalty, playing a bigger role than ‘price’ and ‘brand’ combined.
  • According to Epsilon, 80% of consumers are more likely to purchase from a brand when personalised experiences are offered to them. 

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Practices that Enhance Customer Experience

Let’s take a look at a few practices that you can incorporate in your organization to elevate customer experience and boost customer retention: 

  • Self-Service Options: When you provide customers with self-service options such as walk-through videos or FAQs pages, they are able to solve their own issues and difficulties without having to go through the process of connecting with a customer service agent or chatbot. 
  • Personalized Experiences: Personalized experiences, such as product recommendations based on past searches, create a stronger emotional bond between customers and brands. 
  • AI and Machine-Learning: AI and machine learning can be used to automate services in a way that enhances CX. For instance, chatbots can be used to provide customers with 24/7 customer service. 
  • Omnichannel Experience: An omnichannel experience is an integral part of great CX. As customers use a range of channels to connect with brands, both digital and non-digital, they want to be able to switch from one channel to another while receiving a consistent and seamless experience throughout. 
  • Great Customer Service: Providing great customer service will ensure that even when customers come across difficulties or issues within their customer journey, they will also receive a quick resolution. Good omnichannel customer service will help an organization to be proactive, addressing pain points before they manifest into larger issues. 

 

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FAQs on Customer Experience

Customer experience, or CX, is a term that refers to customers’ perception of your brand that is influenced by the different touchpoints within their customer journey.

Customer experience has a huge influence on customer satisfaction, loyalty, and retention. Organizations that are able to provide a great customer experience will enjoy high customer retention and loyalty. However, organizations that provide a bad customer experience will struggle to retain customers and will have a high customer churn and decreasing/low sales. 

When organizations provide a good customer experience, they enjoy;

  • Increased customer loyalty
  • Increased customer lifetime value
  • A competitive edge within their industry
  • Customers who are willing to pay more

These are a few practices that help businesses enhance customer experience:

  • Self-service options
  • Personalised experiences
  • Great customer service
  • Omnichannel customer experience
  • AI and machine learning 

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Join 500 + global clients across 40+ countries