The customer experience can be defined as the way a customer and business interact throughout their entire relationship. Having a positive customer experience can mean the difference between a successful business and failure. Customer experience is a hot buzzword in business circles right now but why is it important? Here are 4 ways of how understanding the customer experience can improve your business.
One of the biggest reasons a company should prioritize customer experience is to improve customer retention rates. Customers that have a positive opinion on the process of doing business are much more likely to do business again. Additionally, keeping current customers happy is far less expensive than the cost of customer acquisition. Much like bad service at a restaurant would turn a customer off forever, the same concept applies to any business.
Many of the most successful companies have built their brand on positive word of mouth. For example, when most people think of Chick Fil A they think of the employees who go out of their way to accommodate their guests with a smile. E-commerce brands like Zappos are known for offering useful contact centers and simple return policies that make the shoe buying process as pleasant as possible for their customers. A positive customer experience can be an important differentiator for a business looking to position themselves in a market full of competition.
Word of mouth
Word of mouth is an important free marketing engine for a business. When a company has a strong reputation amongst its customers for a great customer experience, they are more likely to become advocates on the company’s behalf and according to Nielsen, a global measurement and data analytics company, 84% of consumers say they either completely or somewhat trust recommendations from family, colleagues, and friends - making these recommendations the highest ranked source for trustworthiness.
In today’s workplace employees need to feel that they are making a positive impact on the world. For this reason, it is important to empower employees to please customers. Allowing employees to proactively manage and improve customer experience can lead to improved employee retention rates. Companies like Sewell auto dealers that establish a culture of service see results from this in their sales, employee happiness, and retention rates.
Customer experience management is one of the most fundamental aspects of any business and companies who want to succeed should always be on the lookout for ways to improve it. This can include hiring an outside customer experience specialist to provide a fresh outlook on the customer journey and how it can be improved. LEH Strategic Partners has 30 years of experience in customer experience consulting helping companies of all sizes to improve customer experience and their operations processes.
Contact LEH today to find out how customer experience consulting can help your business.