What Is Customer Experience?
If you ask yourself what you have done in the past after a negative customer experience you would probably remember telling a family member or friend of what you did not like and discourage them from becoming a customer. Perceptions are built through all of our senses and interactions.
Customer Experience, also called CX, is the perception your customer has about every interaction they have with your business. This not only includes face to face interactions, but also:
- Phone calls
- Prices of products
A customer’s experience is extremely valuable, without a good experience you will not have a customer.
“All business models can benefit from improving the customer experience: subscription businesses can increase retention and reduce churn, ecommerce marketplaces can increase repeat custom and reduce returns, and service industries can gain recommendations and reduce complaints” – Hotjar 2020.
Understanding your customers needs and directing them towards the most beneficial products develops credibility and trust between you and your customers. Good customer service begins with the first interaction with an employee. Customer service is only one part of customer experience, as it focuses on specific points of a customer’s needs but lacks the connection and overall improvements that are made in customer experience.
“CX is larger than customer service. It includes every touchpoint a customer ever has with your company, whether it’s the moment they first hear about you in a blog post they found on Google, all the way through to the time they call your customer service team to complain about your product (and hopefully get a prompt response)” – Hotjar 2020.
Bad customer experiences are due to a variety of factors. Some common issues that cause customer experience to suffer are:
- Long wait times
- Uneducated and/or rude employees
- Unresolved issues and concerns
- Unpersonalized service
A customer wants to feel cared for, and like their needs are being heard and attended too. Certain aspects that may affect customer experience are hard to avoid, for example long lines. Companies like Disney have adapted to this challenge “…the company turned the experience into something fun by adding entertainment elements throughout the line-waiting period” – Ghani. To get an overview of your customer experience, good or bad experiences can be measured by NPS scores, or net promoter scores. NPS scores are measured by asking a customer how likely they are to recommend you to someone else.
Customer experience happens across multiple interactions and the lifetime interactions between a customer and a business.
“This interaction is made up of three parts: the customer journey, the brand touchpoints the customer interacts with, and the environments the customer experiences (including digital environment) during their experience” – Wikipedia 2020.
Good CX means listening to your customers and making changes not only to resolve individual concerns but also improve your business operations overall. Using a Experience Management (CXM) platform automatically analyzes data from purchases as well as collecting your customers input and displays it on an easy to understand dashboard. This information is used to continuously make improvements.Though the platform you are also able to directly chat with customers in real time, this creates a personal experience that lets the customer feel understood and improves their experience.
Customer experience benefits both the business and the customer. According to an analysis by Bain & Company, businesses can generate 4% to 8% more revenue than their competitors by providing an excellent customer experience. Approaching your business decisions though your customers perception creates a customized environment that will excite your customers to visit.
Statistics show that customers tell an average of nine people about a positive experience with a brand, but they tell 16 people about a negative experience. The more positive interactions created, it reduces the significant impact a negative experience can have to your business.