Customers are undoubtedly the top priority of any business, and their satisfaction is as vital in shaping a company’s success. In fact, studies show that 80% of customers believe the overall experience a company provides is just as important—if not more so—than the products or services it offers. This shows the growing importance of customer experience (CX).
So, what is customer experience? Read this blog to learn about customer experience, why it is important, different ways to measure it, CX tools, and more.
What is customer experience?
CX, also known as customer experience, is a broad concept that includes every interaction of the customer with a company, from the first point of contact to the post-purchase experience. It includes everything a customer encounters when interacting with your brand—whether it’s browsing through your website, chatting with customer service agent, making a purchase, or receiving follow-up communication.
Customer Experience is how customers feel about your brand 🌟.
It drives loyalty and growth 🚀!
Customer experience shows how customers think of their relationship with your company over time. Each touchpoint plays a role in shaping their overall experience and satisfaction. Therefore, customer experience is not just about the product or service but about creating positive, seamless, and meaningful interactions that build lasting connections with your audience.
CX is an ongoing process that spans across various channels such as physical stores, e-commerce platforms, social media, call centers, and email communications. In simple terms, CX is the overall experience of your customers with your brand at different touchpoints.
Why is customer experience important?
Customer experience (CX) has become an essential factor for businesses in nearly every industry. According to Gartner research, the top priority for 86% of customer experience leaders in different industries is to enhance customer experience. This might make you wonder, “Why exactly is customer experience so important?”
There are plenty of reasons why customer experience is vital, some of which are listed below:
1. Retain existing customers
Customer experience is important for customer retention. Did you know it costs more to acquire new customers when compared to retaining existing customers? Shocking, right? Positive customer experiences will help you retain existing customers, which is why your primary focus should be on ensuring that your customers are happy with your services.
2. Avoid negative word-of-mouth
Poor customer experience leads to negative word-of-mouth from your customers. Did you know that nearly 91% of buyers in the B2B niche trust word-of-mouth recommendations to purchase a product or service? Word-of-mouth has always been a powerful tool, but in the present tech-first generation, it can spread rapidly across social media and review platforms. Imagine what will happen if your dissatisfied customers start spreading negative word-of-mouth recommendations to others.
3. Enhance brand loyalty
Brand loyalty is deeply tied to customer experience. In fact, Verint revealed that 69% of customers stopped buying from a brand following one poor or bad customer experience. This shows how positive customer experience is directly proportional to brand loyalty. If your customers are happy and satisfied, they are going to purchase from your brand again. This means they are going to be repeat customers and brand advocates, which enhances brand loyalty.
5. Attract new customers
A positive customer experience doesn’t just retain customers—it can also attract new ones. Wondering how? If a customer has a positive customer experience with your company, they are more likely to share their experience with others in the form of reviews, word-of-mouth, recommendations, and more. This means there is a high chance of attracting new customers easily.
6. Improve brand reputation
How a customer perceives your brand impacts your brand image and reputation. A customer’s perception of your brand is shaped by every interaction, whether it’s positive or negative. To put it simply, positive customer experience can enhance your company’s reputation, while poor customer experience can adversely affect your brand image.
What is a CX strategy?
CX strategy is a thoughtful plan that a company designs to provide a positive experience to customers across different touchpoints. The primary objective of a customer experience strategy is to ensure customers are happy and satisfied throughout the customer journey, leading to increased satisfaction, loyalty, and advocacy.
A well-designed CX strategy includes various touchpoints where customers engage with your business—whether through online channels, in-store visits, customer service interactions, or post-purchase follow-ups—and creates a well-coordinated, customer-centric experience across these touchpoints.
What are customer experience metrics?
Customer experience metrics are specific measurements that businesses use to measure the quality of the customer experience at various touchpoints. These metrics help companies understand how their customers think of their brand and how satisfied they are with their products, services, and overall interactions. By tracking customer experience metrics, businesses can identify areas for improvement, make data-driven decisions, and enhance the overall customer journey.
Some of the most widely used customer experience metrics include Net Promoter Score® (NPS®), Customer Satisfaction (CSAT), and Customer Effort Score (CES). Each of these metrics offers valuable insights into different aspects of the customer experience.
- NPS® or Net Promoter Score® is a popular CX metric that helps businesses measure long-term customer loyalty and overall satisfaction with the brand. Example: On a scale of 1 to 10, how likely are you to recommend our company to your friends and family?
- CSAT or customer satisfaction is another metric that typically focuses on short-term customer satisfaction. It measures how satisfied customers are with a specific interaction, product, or service. Example: How satisfied are you with our product?
- CES or Customer Effort Score is another CX metric that is used by businesses to know how much effort customers put in when using their product/service or during interactions. Example: How easy was it to use our product?
How to measure customer experience?
Now that we understand the importance of customer experience, a key question businesses often ask is, “How do we measure customer experience effectively?” We have listed a few effective ways you can use to measure customer experience here:
Surveys
Surveys are one of the most effective ways to measure customer experience because they allow businesses to directly ask customers for their feedback and understand what their customers are thinking. There are different types of surveys you can use to measure the experience of your customers:
- CES – measures how much effort a customer puts in or ease of use
- CSAT – measures short-term customer satisfaction with a certain interaction
- NPS® – measures long-term brand loyalty of the customers
Online reviews and rating
Another valuable tool for measuring customer experience is online reviews and ratings. Customers frequently share their experiences through review platforms, social media, and rating systems on websites. These reviews can provide valuable qualitative and quantitative feedback on your products, services, and overall customer experience.
Customer Support Interactions
Not many people know this, but customer support interactions are an excellent source of information to understand about the experience of your customers with your brand. Tracking customer inquiries, response times, and resolution rates can give you a clear picture of how well your support team is meeting customer needs.
What is a customer experience platform?
A customer experience platform (CX platform) is a software that helps businesses manage and enhance their customer interactions across various touchpoints from one place. It can simplify customer experience management by integrating tools for surveys, feedback collection, analytics, and customer support, making it easier for businesses to deliver personalized and consistent experiences.
Wrapping Up
Customer experience is an ongoing journey that can make or break a business. By designing a thoughtful CX strategy, measuring performance with the right metrics, and continuously improving your customer interactions, you can create a lasting impact on your brand’s reputation.
So, the key takeaway from this blog is “Positive customer experience is essential for retaining existing customers, attracting new customers, and enhancing brand reputation.” For that, it is best to use a customer experience platform like piHappiness to manage and analyze customer experience under one platform.
