A 2018 report from PWC titled ‘’Experience is everything’’ captured what customer experiences mean to the longevity and profitability of businesses. The importance of CX will not diminish in 2021. In fact, it has become more pronounced.
The customer we have today is worlds apart from the one from a decade back. Customers today are more discerning, have more power, and are more outspoken. This makes stellar customer experiences central to a business’s success. Is this something you need to invest in? Experts say you do. Here are four reasons why CX is more important than ever.
To Gain Customer Loyalty
Loyal customers remain with your businesses over time, make referrals, and are less price-sensitive. Besides this, it costs you five times more to get new customers than to retain old ones. It, therefore, makes sense to adopt strategies to win your customer’s loyalty. Actions like multi-channel marketing automation, loyalty programs, building emotional connections, and so are examples of strategies you can use to enhance customer experience.
They Get You Referrals
84% of consumers do not trust adverts. This is unsurprising considering the fact that companies will always put their best foot forward in ads. What is trusted more is word of mouth, albeit with a twist. Consumers are now looking for third-party validation, especially when making online purchases from reviews and other internet sources.
With the internet being what it is and information going viral in a matter of hours, what your customers think of you can make or break your business. This makes customer advocacy extremely important. By remaining committed to delivering stellar customer experiences, you are creating an advocate out of each customer.
CX Is a Differentiator
Think about when, if you are offering the same products or services as your competitors, at the same price points, with similar after-sales services, what will make customers pick you? It is getting harder and harder for businesses to differentiate themselves in a market where everything seems standardized. Still, a competitive advantage is fundamental.
Customer experience is a perfect tool to help you gain ground with customers. In a sense, consumers will come to you not only for the products or services you offer but also for the experiences your business delivers at every integration.
Increased Brand Equity
Brand equity describes a brand’s value in the customer’s eyes. Part of brand equity has a lot to do with customers’ emotions when they think about your brand. Good products, accessibility, responsiveness, transparency, and so on invoke positive emotions of a brand. A sound customer experience strategy will increase brand equity, and in turn, get you customer loyalty, positive reviews, and increased participation in loyalty programs.