Could focusing on customer experience (CX) help your business achieve its growth goals? It’s certainly possible, as 73% of customers say they consider CX when deciding whether to buy from a company. Keep reading to learn how customer experience drives business growth and what you can do to improve yours.
Can Your Business Survive Without Top-Notch CX?
Before exploring CX’s impact on growth, it’s worth considering the downside risk of neglecting it. 90% of businesses say their industry has become more competitive. If you neglect CX and your peers don’t, that could be all it takes to lose market share to them through decreased customer loyalty and negative brand perception.
This shows that the impact of customer experience on business is worth focusing on — even if you ignore the potential growth it can create for your company. You may be falling behind if you aren’t working to improve your CX.
Key Reasons Why CX Catalyzes Business Growth
So, why are CX solutions so important for business growth? Here’s how customer experience and growth go hand-in-hand.
- Fostering Unwavering Customer Loyalty: Acquiring a new customer can cost five times more than retaining an existing one.
- Directly Boosting Revenue Potential: Some research says 86% of buyers will pay more for a great customer experience.
- Creating a Competitive Edge: A well-established brand identity makes it harder for competitors to successfully brand themselves the same way as you do.
- Minimizing Customer Churn: This helps to stabilize your revenue, which should make it easier to forecast.
- Powering Word-of-Mouth Marketing: Research shows that 72% of customers will share a positive brand experience with six or more people.
- Enhancing Acquisition Efficiency: Improving your CX helps you keep the customers you have so you can get more value out of your limited marketing budget when it’s time to bring new customers in.
- Boosting Employee Morale and Performance: This improves your bottom line, as happy employees are proven to be more productive.
- Leveraging Insights for Continuous Improvement: When you have more data to track, you are better guided toward the best ways to spend your CX budget.
- Strengthening Brand Equity: Once you have a strong brand customers like, 76% of them will buy from you instead of a competitor.
- Driving Operational Efficiencies: From reducing time wasted on repeated customer queries to improving on-time service deliveries, focusing on CX can make your company more efficient and profitable.
Exploring Uncharted CX Territories
You’ve learned why customer experience is important for a business and the effect of customer experience on business growth. Now, let’s consider what comes next.
Here are two emerging considerations in the customer experience field that your business may want to keep in mind as it makes its improvements.
Green CX: Merging Sustainability With Customer Wows
As younger generations enter the workforce, sustainability has become a more critical concern. In fact, 78% of U.S. consumers now say maintaining a sustainable lifestyle is important to them. Integrating sustainability into your CX processes will appeal to a broad base of potential customers and likely increase revenue.
The first step in this process is setting your green CX goals. These may involve reducing your energy consumption and waste generation or minimizing your carbon footprint. You can do these things by eliminating paper from your processes, choosing the right partners, and building a sustainability-focused supply chain.
The Ethics of Engagement: CX With a Conscience
New studies show that 86% of Americans are more concerned with digital privacy than the U.S. economy. This highlights just how important data privacy has become to the modern consumer. Ultimately, customers want to know what data you’re collecting and how you’ll use it. Offering that transparency can make them trust you more than the competition.
You may also consider letting customers opt out of your data tracking. This is another smart way to show that you care about their privacy, which could help you increase sales.
Wrapping It Up: The CX Treasure Chest
So why is customer experience important for a business? Customer experience isn’t something your business can afford to ignore. Doing so will result in losing ground to the competition and eliminating a major source of potential growth for your brand.
You can begin your CX transformation by auditing its current state. This will help you understand what you need to improve to create a customer experience that will grow your business.
