Its hard do business with poor customer experience. Companies that earn more than a billion-dollar annually are expected to earn an additional $700 million in 3 years when they invest in customer experience.
A study by Walker found that customer experience will overtake price and product by 2020 and will be more important than any other differentiator.
This means you’ll be competing on the basis of customer experience in the next couple of years and you can’t move forward without the development of customer experience. If you’re not sure how customer experience can help your business grow and why you should strictly focus on the development of customer experience, this article is for you.
Below is a list of common reasons why the development of customer experience should be your business’s top priority in 2021 and beyond.
1. Stay in the Business
Perhaps the most important reason why developing a customer experience is essential for your business is to stay in the business.
To the business.
You can’t do business without having a customer experience strategy. Maybe you can today but you won’t be able to do it after a few years. Customers expect to get an experience from brands they follow that they won’t forget.
As much as 76% of consumers expect businesses to understand their needs and provide them a relevant customer experience. The same study found that 84% of customers say that they prefer to be treated like a human being and not a number – and this is one of the most important elements of doing business with consumers.
Customers expect a lot from businesses these days. If you won’t offer them what they value most, you’ll soon be out of business. According to Gartner, as much as 80% of businesses are expected to compete on the basis of customer experience.
You don’t have to do customer experience just because it is a buzzword rather you should do like to grow your business and to meet customer expectations. You should have a clear understanding of how customer experience relates to your business strategy and how crucial it is.
If it’s not your business’s top priority, you are not heading in the right direction even if your business is doing exceptionally well and has a decent annual turnover.
Because poor customer experience will push you out of the business sooner or later. You can’t compete on the basis of price, product, innovation, or anything else in the future. It has to be nothing but customer experience.
2. Customer Satisfaction
Customer satisfaction is directly related to revenue. Research shows that a fully satisfied customer contributes 2.6x more revenue than somewhat satisfied customer and 14x more than the somewhat dissatisfied customer.
That’s how important customer satisfaction is for your business.
How to make your customers satisfied?
By exceeding their expectations. By improving customer experience.
Here is what happens when you improve customer experience.
Customers get more than what they expect from your business. It makes their life easier and they will stick with your business. It is something natural. Think for a moment, how many times have you purchased from an e-commerce store because it always delivers the same product and if it fails to do so, it will apologize and will compensate you with a discount coupon.
I can’t stop myself from dealing with such an e-commerce store because it knows how to make its customers happy and how to take good care of them.
That’s what customers want.
They don’t care much about price, shipping cost, and other things but they’re more interested in how you treat them. The way how you treat your customers make them feel special (or vice versa). The better you treat them, the more satisfied they will be.
There aren’t any hard and fast rules.
Just do more than what they expect and you’ll get two things in return:
- Exceptional customer experience
- A lot of satisfied customers
Looking for a tool to measure your customer satisfaction? Try Trustmary for free!
3. Customer Loyalty
Loyal customers are the backbone of any business. They’re few but they are much more important than all the other customers. They pay your business more than your ordinary customers.
A loyal customer has up to 70% conversion rate (as opposed to a new customer who converts at 1-3%) and is 9x more likely to convert than a first time customer.
Customer loyalty has everything to do with customer experience. You can’t make customers stick with your brand with poor or mediocre or even average customer experience. It has to be top-notch if you want to convert a decent percentage of customers into loyal customers.
Not all satisfied customers are loyal customers. So a good chunk of satisfied customers will leave your brand for several reasons. The ones who are left behind will stick for an extended duration. And these will be your loyal customers.
What do you need to retain loyal customers?
Exceed their expectations. Give them more than what they need. And improve customer experience across all the channels.
For instance, if your customer support isn’t well-managed and your support team is incompetent, you’ll lose loyal customers. When a loyal customer will contact customer support, he should be treated well. If not, he will switch.
Statistics show that 60% of Americans will switch a company after 2-3 poor customer support interactions. So you’ll get up to 3 chances and if you fail to impress them, they will switch.
Customer experience should be given due respect if you want to have a decent poll of loyal customers.
Development of customer experience is indeed a challenging task. It needs time and tons of resources. You can’t do it overnight. You can’t do it in even months. It takes years to improve customer experience.
And once you’ll be able to develop a superior customer experience strategy, you’ll find yourself leading the industry. Customer experience will be your company’s competitive advantage which nobody can imitate. That’s how businesses are expected to compete in the future.
Start working on customer experience today to secure the future of your business.