There are countless metrics that inform your business decisions. Revenue, resource costs, and employee retention are all part of the equation. However, when it comes to your company’s success, your customers are in the driver’s seat.
In 2021, customer experience (CX) is a key ingredient for business success. When customers have positive interactions at every touchpoint, you know you’re doing your job. Here are just some of the ways that CX determines your company’s success.
1. It Leverages Customer Data
You likely have plenty of customer data at your fingertips. But are you actually using it? Integrating customer experience into your business model means that you’re using customer data for good. Many companies will use an experience management platform to analyze data and collect feedback.
With this data, you ensure that every step of your business process is tailored to your target customer. This means that everyone from your sales reps to your web designers is working toward the same goal: to please your customers.
2. It Generates More Leads
Creating a positive customer experience starts before lead conversion. Remember, CX is your strongest sales tool. You need to capture a potential buyer’s attention before they hit “buy” or fill out your contact form.
Successful companies know that CX is a critical part of their website design and social media presence. By helping potential customers feel at ease from the start, you’re incentivizing them to take the next step. Set the right tone, make information accessible, and help site visitors feel important. A social media follower might just become your most loyal customer.
3. It Maintains Customer Loyalty
Research shows that 90% of customers are likely to make a repeat purchase. As a business, your job is to encourage many more purchases after that. Customer experience is part of this equation as well.
By offering a pleasant customer experience, you incentivize customer loyalty. The layout of your store, interactions with your staff, and even your packaging play into CX. Every digital touchpoint makes a difference as well.
The bottom line is that customers who feel taken care of will return (and likely tell their friends!).
4. It Creates a Positive Reputation
Your loyal customers are your most effective advocates. The more customers have a positive experience with your business, the better. Giving all of your customers the same flawless experience builds your reputation over time. And reputable companies become successful companies.
True, your entire reputation won’t hinge on a single review. However, maintaining a positive reputation over time will lessen the power of negative comments. Creating a community on social media, checking in with clients, and optimizing customer service at every level will cement that reputation.
5. It Encourages Continuous Improvements
When you make CX a part of your everyday business practices, you have a reason to do better. Customer experience best practices are always changing. It’s up to your company to rise to the challenge and figure out which improvements to make.
This is another area where an experience management tool will help. As with other parts of business, it’s important to collect feedback about your CX practices. Qualitative and quantitative data from surveys is certainly valuable. However, digital engagement data like clicks, bounce rates, and daily active user counts are important to watch as well.
Using this CX data, you can make tweaks to your website, applications, or processes to create a more pleasant user experience. These improvements aren’t a one-and-done deal. You’ll likely be tracking CX metrics and trying out changes for the entirety of your company’s future.
6. It Informs Product Lines
What do your customers actually want? In business, this is one of the most difficult questions to address. Fortunately, CX can help you answer it. Companies should track customer behavior to see which product lines are drawing the most interest.
It’s possible that you’ll find more engagement around a certain product or service. This might encourage you to expand in that direction or provide an adjacent offering. You may also choose to transform, or even cut, a product line due to lack of engagement.
While you won’t want to make any hasty decisions, it’s worth tracking CX data in relation to your products and services. Noticing customer behavior trending in a certain direction? Ask for feedback. Staying in touch with customers about your offerings ensures that you’re providing what they need.
7. It Fosters a Customer-Centric Culture
Prioritizing CX will contribute toward your company’s success. You can emphasize CX even more effectively by building it into your company’s culture. Customer experience involves every interaction clients have with your products, people, and platforms. So you need everyone to be on the same customer-centric page.
When you create a CX-based culture, your entire company is working for your customers. In contrast, companies without such a culture might only think about CX in relation to their customer service department. This will result in missed opportunities. The key is to make every decision — about product development, marketing, sales, etc. — with your customer in mind.
This mentality provides your employees with a sense of purpose, making them more enthusiastic and productive.
8. It Helps You Set Future Goals
No matter your industry, it can be challenging to plan for the future of your company. Technology and business practices are evolving rapidly, along with customer demands. All this ambiguity makes it difficult to plan products and services, hire strategically, and maintain your brand.
Fortunately, CX can help your company forecast future trends and client expectations. Monitoring your CX data and feedback will clue you into evolving customer preferences. Seeing more traffic on your mobile app versus your website? The time to shift toward mobile is now. Noting a preference for app personalization? Try adding more.
Ultimately, prioritizing CX in the present will inform your future goals. Your business can discuss what you want your customers to gain from their interactions, as well as how you can help them get there.
There’s no question that customer experience will define the future of business. Your customers have more ways to access your company than ever before. It’s your job to make every touchpoint count. Building CX into every part of your business sets your company up for success — now and decades into the future.