How CX strategy can help to improve customer loyalty

Improving Customer Loyalty: How an impactful Customer Experience Strategy can help?

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Despite an emphasis on creating an exceptional customer experience, 70% of leaders struggle to develop innovative projects that boost customer loyalty. This sounds surprising as CX (being the key differentiator for business success) is known to drive over two-thirds of customer loyalty, surpassing factors like brand and prices. So, how can brands build lasting customer loyalty in today’s complex business environment? Let’s find out:

Build customer loyalty through salient customer experiences

Develop an impactful CX Strategy

Intending to uncover customers’ perceptions and determine their pain points, it gets tough for the CX teams to allocate their resources and they end up targeting issues that aren’t important much to the customers. Thus, there is a limited impact on customer loyalty behavior. It’s difficult to decipher emotional drivers and impressions with standard surveys or VoC data, and conventional methods of prioritizing customer concerns aren’t sufficient enough to uncover the salient customer experiences.
As customer behaviors are driven by their previous experiences, so brands need to seamlessly identify these impactful experiences for drafting their improvement initiatives. By transforming their way of listening to customers, CX teams can identify projects that can deliver a differentiated customer experience.

  • Adopting an agile listening strategy

    To determine the indicators of salient issues effortlessly, CX leaders need to set up a criterion that prioritizes issues with greater importance (which affect customers’ loyalty behavior) and ignores the ones with lesser importance (which do not affect customers’ loyalty behavior). Soliciting feedback through quantitative surveys is one of the most preferred ways of gaining insights into customer experiences and behaviors. But to understand the importance of certain experiences in detail, CX teams need to make use of certain clues. In such a case, key filters like issue durability and issue polarization can help to identify salience indicators. Issue durability is a metric used to unveil the positive as well as negative issues that a customer will remember over a period of time. Issue polarization uncovers the opinions and impressions that have a strong emotional resonance with a customer’s memory. Both of these filters empower CX teams to identify salient customer issues and lay the foundation for your CX project design.

  • Follow a minimalistic redesign approach

    Once you explore customers’ salient experiences, you’ll come across various suboptimal touchpoints that contribute to your customers’ perceptions in some way. This will prove to be challenging for companies concentrating on the right experiences too! So, it’s imperative to focus your redesign efforts only on the touchpoints having a lasting impression on your customers! Leveraging salience as a design screen helps to minimize the overall effort required for shifting long-term customer behavior and plays a key role in determining if the specific changes can improve loyalty. 

Promoting customer self-affirmation to improve customer loyalty

Create opportunities that foster customer self-affirmation – A salience-based CX strategy shifts gears from Once you identify high-impactful customer pain points through a salience-based CX strategy, it’s time to create touchpoint innovations that fortify customers’ belief in their purchasing decisions. Discovering opportunities that enable customer self-affirmation and designing projects that capitalize on such crucial points can be challenging for the CX leaders. Here are some touchpoint innovations that CX teams can leverage to help customers self-affirm their choices and minimize their tendency for considering alternative options:

  • Show my accomplishments – It provides an opportunity to strengthen customers’ confidence in their purchase decisions by revealing the value they get through it. It is usually done by commemorating significant landmarks like when a buying journey gets completed. This ensures customers that they’re making progress and heading towards their goals. 

  • Enable my exploration – It entails a group of touchpoint innovations that occur at the prepurchase stage where customers are busy considering the options they have. In today’s world where there are limitless options for consumer goods & services, enabling customers to compare different products or services can boost their confidence in the purchase and reduce the chances of buying remorse.
  • Guide me to success – It includes enriching customers with a clear and user-friendly plan that is easy to follow in pursuit of their objectives. It helps to bolster the self-confidence of customers by decreasing complexities in usage processes as well as multistage buying journeys.

  • Free up my time – This empowers businesses to deliver value by being considerate of customers’ time and requirements. This category of touchpoint innovations allows customers to invest their time in meaningful things that matter to them instead of low-value tasks.

  • Allow me to control my schedule – This gives customers the authority to use the specific product or service as per their choice, i.e. on their own terms. By offering extreme flexibility and adjustments, businesses can indicate they value their customers and pay full attention to their needs. This reinforces customers’ feeling of choosing the right company and ensures customer loyalty in the long run.


Build self-sustaining practices that scale innovation

Self-sustaining practices to improve customer loyalty

There are 2 ways for approaching CX innovation which include: ad hoc approach and routinized approach. The ad hoc approach includes a random procedure of determining opportunities and ideating solutions depending on the customers’ needs to make them feel better about the brand. The project prioritization is driven by the inclination to outstand the competition while focusing on building & testing to check if a given idea works or not. 

The routinized approach focuses on surfacing the salient needs of the customers that are often left unstated and ideating solutions that help them feel better about themselves & the choices they make. The desire to be different from competitors guides project prioritization whereas building & testing experiences highlight iterative learning according to customers’ responses. 

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Identifying opportunities for CX innovation

To uncover opportunities for CX innovation, most leaders usually rely on statistical techniques that involve root cause analysis for identifying patterns in their VoC data and key factors behind customer issues. While these conventional methods of VoC data collection might miss some salient customers’ experiences. Thus, leveraging in-depth qualitative research methods is a great way of unveiling unstated customers’ needs as well as complementing VOC data.    

The process of ideating solutions is mainly based on the collection & analysis of customer feedback. After gleaning insights from the in-depth qualitative methods and VoC data, companies can effortlessly brainstorm and build solutions that cater to the unstated needs of the customers. However, there are some parameters that you definitely need to consider for generating innovative CX ideas: 

  • Who — The customer or persona
  • What — The benefit that your intended persona will realize
  • When — The specific moment of the journey when your persona will achieve the result

To seamlessly identify opportunities for CX innovation, it’s important for CX leaders to prioritize new ideas and projects. Start by modeling new ideas over projects and experiences that were earlier implemented by brands outside their industry. It’s essential to advance new projects that enable customers’ self-affirmation. As testing of the project’s minimum viable version is critical, so testing the basic idea should not include any significant investment. Also, the company should be able to leverage its existing financial as well as operational capabilities to execute its intended project. 

CX teams are striving hard to create innovative customer experiences that can help to build customer loyalty. Voxco offers robust omnichannel CX solutions that empower brands to adopt an impactful strategy to primarily focus on salient customer experiences.

Voxco is trusted by Top 50 Market Research firms, Global Brands & Universities in 40 countries. Voxco offers full omnichannel capability including CATI, Predictive Dialler, Online surveys, offline CAPI, and Panel Management.
Sahaj Sharma

Sahaj Sharma

Sahaj Sharma is a content marketer at Voxco. Owning a bachelor’s degree in computer science engineering, he loves exploring digital industry trends and creating content to help businesses shape their market presence. Apart from content creation, the other three things that vie his mind share are fashion, food, and travel.

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