What is the importance of Customer Experience?
There is no shortage of products in the market. Therefore, what are the factors which influence the purchase patterns of customers? There can be many factors such as product quality, price, features of the product, to name a few. However, the one factor which rules them all is customer experience. According to studies by Oracle,
- 86 percent of clients are willing to pay more for better customer experience.
- 89 percent of customers switched to a competitor following a poor customer experience.
Therefore, organizations are investing generously to provide improved customer experience as it brings the following advantages.
Increased customer acquisition:A great customer experience makes the customers happy. When customers are happy, they tell their family & friends about the brand. The best marketing a product can receive is word-of-mouth referrals. Therefore, with excellent customer experience, you can easily acquire new customers effortlessly.
Reduce customer churn rates:
When customers are unhappy, they don’t think twice about switching brands. Therefore, it is essential that organizations focus on customer experience. When the experience is flawless, customers stick around. Consequently, customer churn rates reduce.
Improved customer engagement:
With customer experience, a brand can build long-lasting relationships with their clients. When customers are more than happy with the way you treat them, they stay loyal. Thus, you can effortlessly increase customer engagement with excellent customer experience.
Reduced overall expenses:
Customer experience is the surefire way to get new customers easily, retain existing ones, and reduce the churn rates. Consequently, the costs incurred in customer acquisition and recruitment reduces sharply. In turn, the overall expenditure of a brand also reduces.
When new customers come pouring in, the expenditure for acquisition dips as a result. When you couple this with the steady, increasing number of loyal customers, the brand witnesses exponential growth in revenue. Customer experience can do magic, isn’t it?
Quick resolution to customer distress:
An organization that focuses on customer experience can easily understand the distress of customers. This is because as the customers are loyal and trust the brand, they voice their opinions without hesitations. When the brand listens to the voice of their customers, they can quickly resolve it and manage any crisis efficiently, for that matter.