Why Customer Experience Matters More Than Ever
Consumers have more choices than ever before. Conversely, the rise of social media and other dynamic technology-driven platforms have provided companies unprecedented access to customers and prospects. In today’s hyper-competitive marketplace, one negative outcome or slightly unsatisfactory encounter can lead to a customer experience that, in a single “share” or “tweet” can be shared across the globe. Recent research has proven that consumers are two times more likely to share their bad customer experiences than they are to talk about positive experiences. This risk underscores the importance of delivering authentic and consistent customer experiences, particularly in light of emerging new technologies and the social savvy Millennial generation setting the bar for success and failure in the Customer Experience (CX) arena. Companies are no longer defined strictly by price or other tangible product and service characteristics. The perception of your brand is impacted by each and every consumer interaction – across all channels and throughout the lifetime of customer relationship. To remain sustainable and relevant in this new social market, it’s not enough for companies to simply understand this paradigm shift. They must fully embrace Customer Experience so it permeates their corporate culture, consistently fulfills a unified brand promise and authentically delivers a transformational omnichannel experience. While the benefits of delivering a great Customer Experience are wide-ranging, there are several key outcomes that clearly define why Customer Experience matters in today’s consumer-driven world.
Improved Customer Satisfaction
It’s a proven fact there is a strong correlation between Customer Satisfaction Score (CSAT) and an effective Customer Experience. A 2014 report from McKinsey found that companies focused on multi-channel customer experiences have the potential to increase CSAT upwards of 20%. Historically, customer-centric brands have realized improved CSAT scores by creating consistent and authentic experiences at every touchpoint and throughout the entire customer journey. Look no further than Nordstrom. Even as overall retail CSAT scores continue to decline, the company’s score continues to flourish due in large part to their best-in-class omnichannel experience. Much of Nordstrom’s success is the result of seamlessly delivering differentiating experiences. While they have distinct strategies to grow their brick and mortar and online business, Nordstrom’s priority is to link both channels together to provide its customers with a unified experience. This focus is driven by their keen understanding that when customers engage with them across multiple touch points, their satisfaction levels increase and lifetime value and spend increase significantly.
The lesson learned: It’s no longer about focusing on individual customer interactions or a single channel. It’s about thinking broadly of your holistic customer needs and creating a consistently relevant and engaging experience across the entire customer journey. The result will be strengthened customer satisfaction when your intention, design, and actions are customer-focused and consistent.
Enhanced Customer Loyalty and Advocacy
Overall, brands that consistently deliver an authentic and engaging CX also enjoy enhanced customer loyalty. Customers have demonstrated a willingness to spend more money for products and services with brands that engage and resonate with them across all spectrums of the Customer Experience. A lack of consistency in any area could undermine that hard-won loyalty and compromise revenue opportunities, highlighting the importance to have a comprehensive CX strategy that considers all the potential touchpoints an organization has with individual customers.
Additionally, creating an amazing Customer Experience goes beyond just instilling strong loyalty in your customers. Over-deliver on a consistent basis across the CX ecosystem and your customers will become proactive advocates on your behalf in all their spheres of influence. Highly engaged customers become emotionally invested in your brand. They will refer and recommend your product or services to friends, family, and even complete strangers. In the face of someone making negative comments about your brand, these loyal customers will quickly come to your defense and share anecdotal evidence of their own personal experiences to the contrary. Without question, increasing customer loyalty will yield positive results and prove to be of your greatest investments.
Immediate Brand Differentiation
Consumers can quickly and easily compare tangible properties of products and services, but in our commoditized world, it’s all about brand impression. The overall impression of your company’s brand, built on the consumer’s cumulative customer experience to date, will ultimately be the differentiating factor in the vast majority of buying decisions. The perceived value of a brand that delivers a consistently exciting Customer Experience is much greater than that for a brand that does not have an intentional strategy. Remember, consumers have more choices than ever. Customer Experience as a whole is the overriding factor when deciding between brands in the marketplace.
Increased Revenue and Sales
Last but not least. At the end of the day, it’s a business’ bottom line that speaks the loudest. Study after study has proven that customers will spend more with companies that have a customer focus and quite simply make it easier to do business with them. Their experiences, regardless of channel, are authentic, consistent, simple and better than the competition. Customers are willing to pay a premium for good and dependable service.
Customer Experience is not a passing trend. It has moved to the forefront of business strategy and proven to be a key characteristic of successful brands and game-changing influencer to increasing revenues. Across the business landscape are prime examples of brands that have fully embraced CX. It is no small coincidence that these companies are also market share leaders in their respective categories. It is imperative that your organization deliver an amazing Customer Experience on a consistent basis to remain competitive in your industry.
Recognized by CIOReview as one of the Top 20 Most Promising Customer Experience Solutions Companies, PPT Solutions empowers our Clients with transformational business solutions that deliver exceptional performance, outstanding customer experiences and measurable results. Visit pptsolutions.com to learn how we can optimize your business and Customer Experience.
About PPT Solutions
Since 2013, PPT Solutions has served as a premier provider of Client-centric, performance-based Customer Experience and Business Optimization Solutions. Whether a Fortune 50 company or an emerging small business, we passionately deliver a broad range of people, process and technology solutions customized to increase customer advocacy, enhance revenue and optimize operational efficiency. With over 60 years of combined experience and an extensive portfolio of Management Consulting, Professional Services and Partnership Solutions capabilities, our Clients rely on us for advanced insights, adaptive business processes and innovative growth strategies.