Technological growth, globalization, and access to information have transformed the way we conduct business. When a company develops a new product or business idea, it doesn’t take long for competitors to catch-up. To address the market competition, a business has to go beyond product quality and attractive prices to meet market demands. Customer experience is increasingly becoming the differentiating factor between businesses and it taps into the psychological and emotional aspects of customers to build a strong relationship between customers and the company.
What is Customer Experience?
Some organizations interchangeably use interactions between customers and customer service representatives and intelligent marketing as customer experience. However, the scope of customer experience is wider. There are various channels of interaction between customers and companies; all of which determine the customer experience. Customer experience is a customer’s end-to-end journey with a company, as defined by the Harvard Business Review. This includes all the touch-points and the relationship built with customers throughout the sales cycle. In other words, customer experience is not restricted to interactions between customers and customer service representatives.
Focusing on a holistic customer experience can benefit a company in the following ways
Generate sales: Sales is a vital source of revenue for any business organization. Good customer experience generates sales through a positive influence on customers’ buying decisions.
Satisfy customers: A well-designed customer experience increases customer satisfaction and thereby keeps company employees satisfied as well.
Retain loyal customers: A company can retain loyal customers to drive sales and revenues. As we have illustrated in our previous post, retaining customer is vital for any business.
Encourage referrals: A satisfied loyal customer can increase prospects by giving referrals in their network and contribute to increase the customer-base.
An IBM study indicates that well over 60% of CEOs of major companies see the economic environment becoming more volatile, uncertain, and complex and 95% of the outperforming companies have indicated close relations with customers’ as their top priority for the next 5 years. In today’s competitive market and challenging economy, customer experience has become the focal point of companies. The benefits from improved customer experience can sustain a business for the long-term and increase its revenue as well.