5 reasons why customer experience is the pulse of every business

5 crucial reasons to prioritise your customer experience

Published by Flora Frichou on Jun 1, 2017

Editor's note: This is a guest post by Flora Fichou, a Content Strategist at Trustpilot Berlin. You can find the original article in German here

Customer experience is how customers perceive their interactions with your company. A successful strategy should be useful, practical, and enjoyable to the customer.

So why has customer experience become such a hot topic today? Consumer expectations today are higher, word of mouth travels faster.

Purchasers are empowered like never before and great customer experience drives loyalty and revenue. Leaders in customer experience reach an average of 17% on revenue growth within 5 years, whereas poorer customer experience attain only 3% over the same period.

Downplaying its importance is no longer an option for businesses, as the voice of the customer continues to get louder and louder.

Building a great online reputation and investing in customer experience is now the main focus for 68% of marketers, so we’ve put together a list of reasons why looking after your company’s customer experience is important.

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1. Improves customer satisfaction

Companies across the world have an average customer satisfaction rate of 86%.

Customer experience is key to exceeding your customers’ expectations. Brands have to be accurate, dependable, and provide the service they guaranteed. The opportunity lies in the ability to deliver what you promised and surprise your customer with extra care and support.

A totally satisfied customer contributes 2.6 times as much revenue as a somewhat satisfied customer, and contributes 14 times as much revenue as a somewhat dissatisfied customer.

The main goal is to create a consistent customer experience across all touchpoints to exceed you and your customers’ standards. By keeping an eye on the entire customer journey, you’re making sure that the promise of a positive experience is kept and that you’re offering a superior service.

 

2. Turns new customers into loyal customers

Creating an experience that really impresses purchasers ensures that they will continue doing business with you in the future. A superior experience becomes a valued and unique asset for any type of business.

Acquiring a new customer costs 7 times more than maintaining an existing one. Investing in your existing customers will pay off and it’s only a matter of time until you see positive results.

What if your customer is unhappy?

There are a few things that impact a brand’s reputation more than the way it responds to complaints. Customer service is an important part of developing brand loyalty, and the way you respond to unhappy consumers will determine what they say about you afterwards.

Ideally, every business would rather have exclusively positive feedback, but unfortunately, that’s a pretty unrealistic goal.

The key to handling negative feedback is to respond politely and assure your customers that you’re trying your best to find a solution to their issue.

Make your customer feel heard and cared for and you’ll find it will pay off in the long run.

In fact, did you know that 95% of people who had a bad experience are willing to give the brand another go if they know their issue has been dealt with correctly?

Read more: 7 secrets to delivering customer experience the right way

 

3. Increases customer advocacy

Word of mouth is one of the most powerful marketing tools a company can wish for today. The truth is, 84% of consumers do not trust adverts anymore. People are now seeking third-party validation when making an online purchase.

And that’s why customer advocacy is so important.

By focusing on creating amazing customer experiences and embodying the desire for your business to go above and beyond, you’re creating an advocate out of every consumer.

Kunden aktiv in das Kundenerlebnis miteinbeziehen

Lululemon makes good with their Instagram account by asking customers to share photos of themselves in their outfits. This campaign was a huge success, showing potential customers that the sportswear brand is great for both exercise and casual use, and that existing customers support the brand.

Using advocates and user-generated content is an amazing way to engage customers, reinforce brand loyalty and recommend the brand to other consumers.

 

4. Helps you stand out from competition

It is getting harder and harder to differentiate yourself from other businesses when everyone is sharing the same thing online: great content.

But having a competitive advantage is huge, and customer experience is the perfect tool to help you stand out from your competitors.

As Jerry Gregoire, CIO at Dell, says, “The customer experience is the next competitive battleground.”

This way, your consumer will no longer compare only products and prices, but also service and user experience.

Customer feedback has become another invaluable marketing tool. If potential customers can’t openly access other people’s experiences with a brand, they would need to look elsewhere quickly to build confidence. 88% of consumers read reviews to determine the quality of a business’ customer experience. 

Embrace a customer-centric strategy and stand out from your competitors by making sure today’s customers become tomorrow’s brand advocates.

 

5. Builds trust and create personal relationships

79% of people are more likely to buy from brands who care and understand. In a world where we are being bombarded by hundreds of brands and adverts everyday, how can you build a strong relationship with your consumers?

Personalised content and experiences are key. Making each one of your customers feel special and unique will send a positive message: they are cared for and important to your business.

By doing so, you have a better chance at building trust with them, and therefore at creating a strong, long-lasting relationship.

 

These 35 questions will help you to understand your customers better

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Flora Frichou

Published by Flora Frichou

Flora Frichou is a Content Strategist at Trustpilot Berlin.

Topics: Business advice

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