You keep hearing about Customer Experience, but what does CX actually mean and why should you care? Great questions! This article covers the topic with charts, stats, and quick recommendations to get started.
What is Customer Experience?
Customer Experience (CX) is a relatively new phrase in the business lexicon, one that combines the work of all business departments and refocuses the entire company’s attention on the customer itself.
A loose definition, courtesy of Wikipedia
Customer experience (CX) is the product of an interaction between an organization and a customer over the duration of their relationship.
In a few words, it’s the perception a customer has of a business. Through direct and indirect interactions, customers form strong perceptions about businesses, and over time, they either rise or fall. Let's not let that slip away too easily. CX is now the single most important driver of growth for business, including new and expansion business.
Customer perception is, of course, subjective, but there are numerous ways to quantify CX, and we’ll save this for another article.
CX vs. Customer Service
Often confused with customer experience, but hopefully not for long, customer service (CS) may be as simple as the brief interaction a customer has with a company during or after a purchase. This doesn't take away from the importance of customer service, the point is only to say the it is just one part of many that impacts CX.
Customer experience may take years to form and is a lot more flexible. Fans of businesses who have great CX understand that ‘things happen’ and will be patient, or even constructive, of a bad interaction instead of letting it deteriorate their perception.
Customer Experience is related to the entire customer journey. Customer service is sometimes just a one-time event, but can disproportionately impact overall CX.
Why CX is So Important
Instead of filling this article with commentary and passion, let's let statistics do the talking. In just 7 bullet points, this is why CX is so important and why every business, especially YOUR business, should make it a priority.
- Brands with superior customer experience bring in 5.7 times more revenue than competitors that lag in customer experience
- Satisfied customers are likely to spend 140% more after a positive experience than customers who report negative experiences
- Loyal customers are 5x more likely to purchase again and 4x more likely to refer a friend to the company
- CX-focused businesses are 60% more profitable than those that aren’t
- 81% of businesses know they should prioritize customer experience
- In a survey of CEOs, CX was the most effective method for creating a competitive advantage
- There are so many more stats. Over 50 in this Forbes article alone!
How to ‘Get It’
So now, the why is a little clearer, let’s provide a little how. Since every business is unique, let’s summarize a few actionable items for everyone from our Three Essential Elements to Customer Experience that we released as part of our ebook, Transform Your Customer Experience.
- Offer Immediate Answers
When a customer needs information, most want it within 10 minutes!
- Provide Simple Interactions
Make it easy for a customer to contact you, buy from you, and reward you. There’s no reason to block customers from doing business with you in any way.
- Create Seamless Communications
When a customer communicates with a business, through one channel or many, it should feel like one continuous conversation for the customer.
We’d love to tell you a little more about why CX is important to us at TABLE, and how you can make it a priority in a live demo with our CX Advisors.
Connect with our CX team here to get started.