By now, virtually all companies agree that customers are the lifebloods of their operations. They are the ones that provide revenues and allow them to thrive and grow. The problem is some have a wrong impression about a crucial component of customer management: customer experience.
Because missing this out may be catastrophic for the business, it’s time to deliver more data about it beginning with these:
1. Businesses Can Track and Improve Customer Experience
For some, the concept and practice of “customer experience” may be far-fetched or even abstract. Because of this, they find it hard to quantify or assign a numerical value that helps generate data.
In reality, different customer experience tools exist. They can be as simple as surveys or as complex as R software, which “calculates” text-based customer reviews. Companies may customize these platforms depending on the departments that need such information.
Note, though, that data can only go so far in enhancing experience. It’s always about what the company does with such information.
2. Customer Experience Is Different from Customer Care and Service and UX
Many tend to use the terms “customer service,” “customer care,” and “customer experience” interchangeably. It is understandable since they sound alike. However, they don’t have the same meanings.
- Customer service is the kind of assistance the business provides. It may be in every part of the sales funnel, such as inquiries to after-sales.
- Customer care helps establish a more profound and even more emotional connection with the market. In this process, the relationship between the company and the customers doesn’t end after a sale.
- Customer experience is the level of satisfaction (or the lack thereof) the market feels in every step of the buying journey.
Though they have different meanings, they relate to one another. Both customer service and customer care are a part of customer experience. For a business to retain the market, generate loyalty, and make clients happy, they need to have all three.
Some may also confuse customer experience with user experience design. The latter is an expression of the former. When done right, it can dramatically improve satisfaction, and that may translate to sales.
3. Customer Experience Generates Revenue
One of the biggest contentions among industries and even businesses is whether spending on customer experience is worth it. Based on available data, the answer is yes.
Writing for Forbes, author Blake Morgan shared the following information:
- More than 80% of companies that focus on customer experience boosted their revenue.
- They are also more likely to generate revenues up to 8% higher than the others.
- They may also outperform the laggards by a whopping 80%.
- These businesses are also at least 60% more profitable than companies that don’t invest in customer experience or even service.
But why? First, some studies already showed that retaining customers may be less costly than acquiring new ones. Repeat clients are also more receptive to new products. Happy customers can also bring in more people through recommendations or reviews.
The term “customer experience” is a buzzword for a reason. The market is trying to take more control over how companies do business. After all, they are beginning to understand the immense value they have in the economy.
For businesses, customer experience is an opportunity to show appreciation to the market and that they deserve their loyalty.