Today, a major marketing strategy for many businesses is built around the customer experience. It can be a powerful element of your brand, but what exactly is it? And, why is it so important?
What is the Customer Experience?
The customer experience (CX) is a customer’s perception of your brand. It is formed by every experience and interaction that the customer experiences during any encounter with your business. CX is the cumulative effect of every touch-point, what they see, hear, and feel when engaged with your brand.
Customer experience happens in a number of ways, both online and in-person, throughout the buyer’s journey. This includes:
• Visiting a website
• Browsing products
• Going through the check-out process
• Reading an email
• Engaging with a company representative
• Unpacking an order
These are just a few examples. Every interaction contributes to, and defines, the perception a customer has about your business. It builds a lasting impression of your brand.
Why CX Matters
It does take some effort to focus on CX, but it is worth it. A Harvard Business Review study found that customers who have a great experience with a business and brand build loyalty to that brand, and spend as much as 140% more than customers who had a poor experience.
The same study found that customer loyalty was higher the better the CX. It showed that when customers of a subscription-based business had a good experience, there was a 74% chance they would be a member for at least a year. For those who had a bad experience that number dropped to 43%.
How to Create an Excellent Customer Experience
Here are some tips for giving your customers an excellent experience.
• Know Your Customers – Define your target audience, their demographics, needs, wants, and desires.
• List Every Touchpoint – To improve CX, you need to understand everything they come into contact with throughout their buyer’s journey.
• Consider Customer Sense and Emotions – Only after you’ve identified touchpoints, can you improve them. Reflect on each interaction a customer has with your brand and how you can improve it.
• Provide More Value – Consider what your customers value the most, then find a way to provide more of what they care about.
Customer experience isn’t just a buzzword or hot marketing strategy. It’s a proven method for improving brand perception as well as attracting and keeping more customers!