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Corey Kogan
Customer Experience Management: Creating An Impactful Experience For Your Customers In 2020
According to a recent study, 57% of customers have abandoned a business because of poor customer experience or they got a better customer experience from a competitor. The success of a business depends largely on not just the awesomeness of your marketing strategy, but also the efforts put into customer service and experiences. Different studies have also revealed that it is more expensive (five times over) to get a new client than to retain one. That’s why it is a great business decision to invest in customer experience management in your company. The better the experience, the higher the chance of retaining that customer. If the experience really blows their minds, they will tell their friends about it, and that means you’ve gotten a new customer by investing in one. We cannot overemphasize the importance of great customer experience. Over time, data has shown us how important it is to any company. In the next phase of this article, we will look at what the stats say about customer experience and why you need to invest in your company’s customer experience management channel.
What the Stats Say
Reports show 54% of customers will expect better customer service today than they did a year ago, and the number is even higher for millennials, 66%. A Gartner reports found out 89% of business competitions will be focused mainly on customers’ experiences. The winner here will position themselves as undisputed market leaders. The same reports suggest 50% of businesses will shift their investments to customer experience innovations in 2020. A recent study by the Microsoft Corporation found out 96% of clients believe customer experience and satisfaction is a major determinant of their loyalty to any brand. The same study also found that 67% of customers believe that customer services and experiences are improving worldwide. This can be attributed to the massive investment being directed towards customer experience innovations in recent years. According to a survey by Zendesk, customers ranked excellent customer service as the number one factor they consider before trusting any company. So if you want a brand trust and loyalty, you know where to invest in. An American Express report says Americans will pay 17% more to do business with a company that offers amazing customer experience, while 52% of customers have made an additional purchase from a company after a wonderful experience when they first patronized the brand.
What is Customer Relationship Management
Before we dive into the benefits of amazing customer experience, it’s only fair we know what it is. In simple terms, customer experience management is an art. It is the art of designing and responding to customer interactions across all channels of communication with the basic aim of meeting or exceeding customers’ expectations. The end game here is to create customer satisfaction, brand loyalty and advocacy with your customers. A business that has mastered the art of managing customer experiences will no doubt lead companies who haven’t, it’s just as simple as ABC. A survey by Zendesk says 90% of customers are swayed and will make a purchase if you have positive reviews and more people focus on positive than negative reviews online. Positive leads negative by 6%. According to Lumua, 99% of customer experience executives believe customer experience management has a positive effect on their business.
Why You Should Invest Heavily in Customer Experience
In this section of the article, we will talk about why you should invest in having a wonderful customer experience for your business. A Temkin group study found out that a minimal improvement in customer experience for a typical $1 billion company will have an impact of $775 million on the company over 3 years. 64% of B2C customers and 74% of B2B customers say they will pay more to get a good customer experience. According to Watermarks Consulting, businesses that dominate customer experiences outperformed the businesses who don’t by 80%, while 84% of businesses will invest more to improve customer experiences and automatically increase their revenue in 2020. What does this tell you? It means customer experience has already taken center stage as the most important business strategy, the earlier you get the memo, the better for your business.
So why should you improve CX?
● Customer retention and loyalty: The best way to retain your customers is to give them a first-time experience they will never forget. Data shows a customer will buy from you again if they had a good experience buying from you the first time. A recent study found out good customer experience improves brand loyalty. 43% of customers in the US will spend more with brands they are loyal to. Loyalty starts with good customer experience. Every business should focus on retaining old customers. It is less expensive to retain an old customer than to acquire a new one. Work on your customer experience and retaining customers will become easier for your business.
● Free advertising: When a customer is truly impressed with the experiences throughout the buying journey, they will surely tell their friends about it. Word of mouth advertising is the best and most effective form of advertising any business can pray for. We already started that 90% of customers base their buying decisions on reviews. If you impress your clients, they will give you a great review, these reviews are more or less advertisement you didn’t have to pay for.
● Improving revenue: Investing heavily in customer experience only means your revenue will improve heavily as well — 43% of clients will spend more on a company with good customer experience. According to a Harvard Business School report, increasing customer retention rate by 5% will improve your profit by 25% to 95%. This is how impactful an amazing customer experience is. Any company serious about increasing revenue should invest first in customer experience innovations and management. When that is achieved, they should relax and watch revenue increase.
● Improve brand value: Did you know that you can improve the value of your brand by improving customer experience? If customers always have a good time interacting with your brand, then your brand will enjoy the benefits. As your brand value increases, so does your revenue.
Over To You
According to a Zendesk report, 95% of customers are likely to tell others about a bad experience, while 87% will tell others about a good experience. Let your business be in the positive statistics by improving customer experiences, you’ll surely benefit positively.
