How Customer Experience Drives Business Growth

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.
  • 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.

How Can You Start Improving Your CX Today? 

Now that the business value of customer experience has been established, it’s time to look at actionable strategies for improving yours. Here are 10 to consider.

1. Understand Your Customers

Improving your CX starts with developing a better understanding of what matters to your customers. You can get there by soliciting customer feedback and paying close attention to those who share positive customer experiences.

You can also analyze data to determine where customers tend to encounter the most problems when signing up for your service. This will help you eliminate major issues so they don’t drag down your overall CX quality.

2. Personalize the Experience

86% of consumers say personalization plays a role in their purchasing decisions. To do that, you have to know who your customers are. This may mean collecting more information from them during the sign-up process.

Once you do that, you can group customers by common characteristics like age, industry, or experience. Then, you can customize a user’s CX based on common behaviors among those demographic groups.

You’ll also want to let users change their customer experience based on their preferences. This may mean building customizable dashboards or offering individualized product bundles, among other strategies.

3. Streamline the Customer Journey

Two or three negative interactions are enough to make 92% of consumers abandon a company. To avoid this, you need to identify and remove key friction points in your customer journey.

Back-end data will reveal some of these friction points, but it’s also important to ask your customers directly through surveys.

4. Invest in Technology

Another way to optimize your CX is investing in the right technology. If your competitors have tech you don’t, that alone could make their customer experience better. Customer relationship management (CRM) systems and artificial intelligence (AI) chatbots are two common technologies businesses use to improve CX today. 

That being said, it’s worth holding off on making a serious investment in CX-focused technology until you have some insight into your customers’ habits. Their back-end usage data and survey responses can help you understand which type of customer experience technology will have the biggest impact on your success.

5. Empower Your Employees

It’s also important to note the role employees play in delivering excellent customer experiences. You can make sure they support your efforts by instructing them on how to make customer-centric decisions.

That might mean creating new workflows for customer support agents and changing how you deal with various problems. 

6. Respond Promptly to Feedback

Even if you can’t take action immediately, you should let your customers know you hear them and are working on solutions so they don’t get frustrated and potentially leave for a competitor.

When you do take action, it can also be smart to update customers who have complained. It may not always be possible, but when you can share that kind of update with a customer, they’ll be 100% certain you care about them and their needs.

7. Foster a Customer-Centric Culture

Fostering a customer-centric culture will require first understanding who your customers are and what they care about. Once you have that information, you can adjust your strategies to better suit their unique needs and preferences.

Some of this may require additional investments in customer service. These may be unpleasant, but remember that customer service is a revenue generator — not just the cost of doing business.

8. Enhance Digital Interactions

79% of Americans now shop online. If your company’s digital interactions aren’t top-notch, it may struggle to gain traction with this growing demographic. That’s why it’s essential to create user-friendly, highly accessible digital experiences.

You need these both within the customer journey and after a potential customer turns into an actual client. That means optimizing your digital shopping experience and making sure the platforms customers use are well-suited to their unique needs.

9. Offer Consistent Experiences Across Channels

Today, businesses interact with their customers through more channels than in the past. Part of optimizing your CX is ensuring you deliver excellent customer outcomes no matter which channel someone decides to use.

This will mean replicating your CX across phone, web, email, and social media, among other online and offline channels. The closer you get to uniformity, the better your customer experience will be.

10. Continuously Improve

Finally, it’s crucial to make CX optimization an ongoing priority. Your customers’ needs and preferences can and likely will evolve. If you optimize CX once and then forget about it, you may miss out on emerging trends and see a decline in customer loyalty over time.

The best way to do this is by continuing to track customer feedback and back-end CX data. That way, you’ll see customers’ priorities change in real-time and be able to adapt your customer experience to match those changes as quickly as possible.

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, making this investment today could pay dividends for years to come.

>Zahoree

Zahoree

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