Why Customer Experience Is So Important
"Customers remember experiences, not your brand logo."
The customer experience is important because every aspect of your relationship and interactions with the customer spring from it. It's the "big picture" view of this complicated relationship. To drive home just how important it is, here are some things to consider:
- A study by Strativity Group in 2009 found that 860 corporate executives who increased their investment in understanding and managing their customer experience saw higher customer referral rates and rates of customer satisfaction.
- According to Beyond Philosophy, a good customer experience makes acquiring customers easier, drives customer loyalty and helps companies effortlessly improve their customer retention.
- A good customer experience applies the "wow factor", which means that it exceeds customer expectations. This is a proven way to keep customers coming back for more.
- It also keeps your customers from going to one of your competitors to get their needs met. People like to buy from places that make them feel good. Since the customer experience is closely associated with the customer's feelings and psychology, it's effective at retaining customers.
- With a good customer experience, you don't have to try so hard to develop an advantage over your competitors. You don't have to lower your price because customers will gladly pay more for a good customer experience.
- If you offer an outstanding customer experience, this helps to differentiate you from other companies. It's very powerful in branding your company. You can use this point of differentiation to your advantage.
- The investment you make in customer experience research will pay off in real results. Analytics and sales data can help a great deal in developing your strategies, but there's nothing as effective as direct feedback from your customers themselves.
Finally, a nice thing to know about customer experience is that few companies invest in it, which means that if your company does so, you'll have a great advantage over others.
A report by Econsultancy found that only about 20% of companies have a well-developed customer experience strategy. This means it's a huge opportunity for those that choose to invest.