The Real Value of Good Customer Experience (CX)
When running ads and marketing campaigns, many businesses have one key goal, i.e. “conversions”, to generate a lead or a sale. Unfortunately for their business growth, their efforts end right after that goal is met. Too many managers and marketers believe that these results end their customer’s journey and mistakenly over-simplifies how their marketing funnel works.
However, customer experience goes further and beyond initial conversion, and frankly, what follows is where the real value and revenue comes from. At the very bottom of the funnel sits the most invaluable parts or the business relationship with their customers, namely customer loyalty and advocacy, which carry on following that first purchase.
In fact, as professional marketers, we can launch some of the most successful marketing campaigns, run a variety of high performing ads and sell your products in large quantities. However, if you’re not offering your customers a good experience, they leave out the door just as fast as they came in! Your purpose is to keep them, so they stay with you for further cross and up-sells, or at the very least, keep visiting and remain open to your offers!
With the rise in the cost of advertising and customer acquisitions, it’s becoming ever more important to pay closer attention to your customer experience (CX) management. CX is all the interactions a customer has with your brand, from the very first time they hear about you, through your marketing campaigns to sales, customer service, and every other touchpoint in between and after.
As your customer goes through their journeys, they develop a perception and an opinion of your brand. This perception can lead to lifelong, loyal customers, who will advocate for your brand by turning all their friends and family into becoming your customers too, without further marketing efforts on your part. Unfortunately, however, in most cases, many potential returning leads never come back, ever, leading not only to lost sales revenues, but higher marketing costs longer term!
Win Your Customer’s Heart and Make Your Brand Win
It is important that you understand that every interaction your customer has with your business, throughout their customer journeys, will produce a range of emotions in them. Whether it’s a positive emotion, or a negative and frustrating experience, that is what they will associate with your brand. How they feel and think about you in turn, leads to customers asking themselves the most important questions concerning their relationship with you, whether to buy and return again, or to leave and never come back?
This is why it is crucial for businesses to pay close attention to your customer experience management and continuously improve on this crucial aspect of your business sustainability. This essential aspect of your business operations is founded in strong research from some of the most trusted consultancies in this sector. For instance, PWC has reported that 32% of customers would leave any brand that they had previously loved, even after just one bad experience.
According to Estaban Ekolsky, Founder of ThinkJar, a research think-tank and consultancy in customer strategies 13% of customers will tell 15 or more people about their bad experiences. 72% of customers will tell 6 or more people about their positive experiences. We humans like to tell stories, good or bad, so it’s up to you to make sure that your customer’s experience is the best it can be.
It seems that loyal customers are five times more likely to purchase again and four times more likely to refer a friend to the company they trust.
With information continually going digital, it is easier than ever for your customers to find competitors that treat them better than you do. Don’t let that loss of reputation and ultimately market share happen to your business when it doesn’t have to be this way!
Walking Alongside Your Customer
Investing more in your customer experience can be transformational for your business. Not only it will boost your customer retention, it will also increase sales from your existing customers, as you can more easily up-sell or cross-sell your products to them; they’ll come back to you for their future needs, perhaps spend more with confidence, which altogether leads to higher basket values and customer lifetime value (CLV).
If you keep up with their expectations, they’ll become your brand’s advocates. As your volunteer ambassadors, they will recommend you to their friends and family, so you acquire new customers without any marketing efforts whatsoever. Word of mouth is too powerful a marketing channel to ignore; in fact, ignore this aspect of your communications at your peril if you do not make right any mistakes you make with customers.
Start with Mapping Your Customer Journeys
If you are wondering how you can see into the hearts and minds of your customer, your starting point is mapping out every possible ‘touch point’. Wherever your teams interact with your customers has to be explicitly identified. Each CX opportunity must be systematically mapped and quantified. For many of those points of contact, CX may already be of good quality, but in mapping out the whole customer journey, your teams will be able to recognise where improvements can be made. Your staff must be open and honest about their customer’s perspective of how well they are served.
In carrying out this CX mapping process, be aware that customers create their own relationship journeys, they move from one platform or channel to another, or retrace their steps which may not necessarily match your staff’s expectations.
Measure Your Customer Experience
There are several common ways to systematise measurement of your CX, which often rely on surveying your customers on an on-going basis.
Assessing a customer effort score (CES) involves surveying customers to establish how easy it was for them to complete any action with your company, or how easy it was for them to overcome obstacles and issues.
Your then becomes your measurable insight into the level of effort that your customer puts into interactions with your brand. This then becomes a short-term, baseline metric for subsequent analysis of customer experiences in transactions with your teams to be measured against for progress.
Net Promoter Score (NPS) helps to establish how likely your customers are to recommend your product or services to a friend. This is another metric established following customer surveys.
This NPS score is a useful metric measuring long-term customer satisfaction and loyalty. NPS gives managers an overview of CX.
NPS is not without its detractors; of course there are limitations to many qualitative metrics, but as a snapshot, it has value. Your teams will need to agree what the limitations of this score are in order to establish how it is best used for recommending changes. For instance, cultural differences can make for differences in CX interpretation. Also, if a customer rates you 6/10 here, is this a criticism overall, or are they just expressing that you have room for improvement?
A key driver of longevity of positive customer relationships is how satisfied they are with your product or services. It may seem obvious, but getting a handle on how your customers feel towards your business is a must. Establishing a customer satisfaction (CSAT) score for each interaction your customer has with you will help you develop an overview of how successfully your business operates and where you can make improvements to make customers happier after key events in your sales funnel. While this will be a short-term satisfaction metric, at scale, you can measure your overall performance in relation to your audiences, as well as their perceptions of specific services or products.
How quickly your company resolves complaints and issues has a direct bearing upon customer experience. Tracking your ‘time to resolution’, as a metric will help you identify problem areas and allocate resources to resolve sticking points faster. The clock starts at the point of interaction with a customer, to the point at which the customer experiences resolution of their problem. Some businesses refer to this simple metric to implement as ‘mean time to resolution’ (MTTR), or ‘time to resolve’ (TTR).
Build The Right Customer Experience With ADSRUNNER
Establishing new performance metrics around customer experience can be a simple process when outsourced to a customer experience consultant with the expertise of working with diverse business sectors. Having an overview of sectors helps you leverage your metrics to achieve stronger competitiveness.
It’s a simple process to outsource your set up and on-going reporting on CX to AdsRunner, who have the experience to help you implement improvements quickly, based on objective analysis.
With our metrics, precision and commitment to helping you work smarter and faster in the sphere of CX, we can help you build a culture that understands customer experience better and can measurably improve performance. Let AdsRunner’s analysts undertake the heavy lifting, so you can focus on embedding an organisational culture that cares about CX, where staff can gain meaningful insights that action can be taken on in real time.
We believe that CX isn’t just about producing metrics for reports, but offers a practical set of tools to understand where problems lie and where identification of low-hanging fruit can help you gain instant shifts in customer perception, as you build and mainstream best practice in your organisation.
We will work with you to establish short and longer term programs for improved customer journeys. Meaningful metrics help you achieve cultural changes with more objective benchmarking that your customers will benefit from, as will your bottom line too. Make your staff’s learning curve easier and more enjoyable, as they gain trust in managers who are judging their performance more objectively, so you can work better to achieve tangible improvements.
As your teams learn and grow capacity, so your increasingly consistent, day-to-day delivery of better quality products and service engenders trust from your customers, that essential basis for customer retention. You can better target those aspects of your brand that customers value and compete more easily with the strongest marketing asset available to every business: word of mouth.
Let AdsRunner’s specialist CX consultants help you stay focussed on those day to day operations valued by your audience, so you stay relevant and move closer to leadership in your given sector.