In this globally competitive era, customer experience is widely discussed and business owners are increasingly focused on building an improved CX. But how does it factor into business growth and sustainability?
Keeping your commercial operations positive and moving forward in the right direction is the key to sustained growth. The one thing that can bring untold damage for a business more than anything is a poor customer experience. Negative customer experience minimizes the conversion rates and drives the customers away. On the contrary, positive customer interactions can stimulate growth in several ways.
Customers are the focal point for every successful business. How an organization treats its customers forms the customer’s perception of the brand. This perception affects the client’s behavior, creates memories and feelings, and drives them to be loyal to a business as a customer.
Industry-leading businesses centralize their strategic planning around their customers. They go the extra mile to create an exceptional CX and ensure that their customers are happy and satisfied. This aids in converting the visitors into the final customer. Around 84% of firms reported an increased revenue because of improving their customer experience.
The Intrinsic Relation Between CX and Brand
Whether it’s customer-care support, product experience and purchase, or digital engagement via emails and calls — Every interaction impacts and influences the customer experience. Thus, every customer interaction is an opportunity for a business to portray the brand as a professional in the field. This encompasses every activity such as influential content, email marketing, promotional campaigns, and social proof. Hence, a brand must remain considerate towards its customers in order to meet and exceed their expectations. By doing so, branding and marketing are rather incorporated into the service provider organization as part of its overall customer experience.
How CX Creates Market and Revenue Differentiation
It’s not a hidden fact now that the business growth is interconnected with the customer experience. As a result, the contact center has become a critical department in improving the entire CX graph for a business. A positive customer experience helps in brand-positioning, strengthening, as well as customers on-boarding and eventually making them brand loyalists. Walker’s study says customer experience is the driving force for businesses as the key brand differentiator with a potential to overtake the price and product. For this verified reason, the customer experience is considered by 81/5 of companies to be a competitive differentiator.
Below are the key benefits that are influenced by a positive customer experience and contribute to business growth:
Retention and Loyalty
Successful businesses know the significance of having a functional system in place for improving customer experience. It begins from customer acquisition to the point of customer repetition, retention, and ultimately building their loyalty towards the brand — All because of an extraordinary CX. 96% of customers are inclined to be loyal when they are served with a quality customer experience. But, how does customer loyalty translate into business growth? The answer lies beneath research that says increasing customer retention by 2% equates to the same profit as cutting costs by 10%.
Communication with the customers is potent when an organization has delivered a great customer experience. A loyal customer wants to listen to the brand. He trusts the brand and is inclined to make purchases from the same seller company. Once a customer is intrigued by the strong experience with a brand, it’s easier for a business to communicate its promotions. Through effective communication, businesses can build an emotional connection with their customer, which is followed by a rapport relationship. These are all factors that can lead a company to surpass its competitors’ sales growth by 85%.
Improved Conversion Rates
Customers tend to become brand loyal due to good personalized customer interaction. A study shows that loyal customers are five times more inclined to repeat their purchase and four times more likely to recommend the brand to a friend. The more the customers are true to the brand, the higher the conversion rates. In such a favorable scenario, companies have greater chances to enjoy the perks such as increased margins, increased customer engagement, increased repeat purchases, higher ROI, and improved cross-selling opportunities. In addition to these benefits, providing a superior customer experience can reduce the cost of serving customers by up to 33%.
When a company puts in the effort to deliver the best quality service to its customers, it earns an intrinsic reward for it — Market Goodwill. The customers begin to consider the brand as a reputed and trusted source to fulfill their needs. Eventually, satisfied customers turn into good word of mouth which is a great marketing tool to set the edge over competitors. According to Estaban Kolsky, as much as 72% of customers will share their positive experiences with 6 or more people. On the contrary, 13% of customers are likely to share their bad experiences with 15 or even more people. -The difference that CX creates for a brand!
The Bottom Line: Customer Experience And Customer Loyalty Are Tied Together
Businesses are supposed to consider the customer experience and customer loyalty as interlinked forces to drive business growth. Utilizing the resources at hand in a righteous way, customer loyalty can be enhanced. Setting up an effective customer journey map, using social proof to solidify brand-positioning, delivering a personalized experience, value-packed content via omnichannel marketing approach, and a lot more naturally falls into this debate. To boost the customer’s loyalty and experience, consult marketing specialists at Gurland today. Aim BIG and achieve it with our assistance at your side.