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Customer Experience: Overview

Customer experience has received immense attention and importance in the realm of business. The exponential growth is due to the increasing number of companies who are turning to be ‘customer-centric.’ Ultimately, the products you make and the services you provide are for the customers. If there is a divergence in what you provide and what customer expect, what’s ahead of the organization is not great. Therefore, all the sectors of an organization must be customer-centric and feedback-focussed. When you align the different vectors of your organization towards customers, the impact it can have is profound. So what is customer experience? How can you differentiate a good experience from a bad one? In what way does a great customer experience help an organization? Find out the answers to all these questions right here!

Customer Experience- Beginner’s Handbook

What is Customer Experience?

Why is Customer Experience important?

How do you measure Customer Experience?

How do you improve Customer Experience?

Customer Experience vs Customer Support

Customer Experience FAQs

What is Customer Experience?

Customer experience is defined as the perception of a customer about a product they use/have used or a service they have received, after an interaction(s) with a brand at various touchpoints. Customer experience isn’t about a single touchpoint, rather the entire customer journey right from brand acquaintance till check-out.

The richness of customer experience a brand provides can be traced by evaluating the impression customers have about the brand.

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.

Boost revenue: 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.


The significance of customer experience.

How to improve Customer Experience?

There are different strategies to improve customer experience. But, it all begins at the same point- mapping & identifying all the customer touchpoints. With customer journey maps, you can pinpoint all customer interaction points that are necessary to provide a great customer experience. Identify all the point of interactions and measure customer experience in the different ways we shall discuss in the following section. Let’s have a look at the different strategies to improve customer experience.

Chart-out and map all the customer touch-points.
Map Customer Journey

Identify every single customer interaction points

Identify your target audience and engage with customers.
Identify customers

Understand your target customers are before launching the brand

Collect feedback from your customers and analyze it.
Gather customer feedback

Collect regular customer feedback from all touch-points

Make your employees customer-centric and feedback-focussed.
Equip your team

Make your employees customer-centric and feedback-focussed

Analyze the customer feedback data and take proper actions for improvement.
Act on the feedback

Take proper measures to act on the feedback, without delays

Measure customer experience continually and improve your brand.
Measure CX and improve

Measure overall CX and work every day to improve it

Customer Experience Strategies

Boost the revenue, dip the churn rates, hike the acquisition rates with these foolproof customer experience strategies.

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How do you measure Customer Experience?

Customer experience is easy to measure with the following metrics. They are Customer Satisfaction(CSAT), Net Promoter Score (NPS), Customer Effort Score (CES), Customer churn rate, Average resolution time, Conversion rate, Customer acquisition rate, and Social media. The data that all the metrics mentioned above brings can help organizations understand how good is the customer experience their brand provides. While some of the parameters like CSAT, NPS, and average resolution time gives straightforward numeric data, others like social media help to understand customer perception.

Measure customer satisfaction with CSAT surveys and improve customer experience.
CSAT: Customer Satisfaction

Measures customer satisfaction about product/service using CSAT surveys. Higher CSAT score indicates better CX.

Measure customer loyalty with Net Promoter Score and enhance customer experience.
Net Promoter Score (NPS ®)

Uncovers customer loyalty towards a brand. Higher the NPS score, better is the customer experience.

With Customer Effort Score, find the ease with which customers can do tasks with your brand.
Customer Effort Score (CES)

Ease with which customers can execute a task using your product/service. Lower the effort score; better is the customer experience.

Lower customer churn rates indicate a flawless customer experience.
Customer churn rates

Percentage of customers who opt out of recurring purchases. Lower the rates, better the customer experience.

Make your average resolution time short, respond to customer queries quickly, and improve the customer experience.
Average resolution time

Time taken to resolve a customer distress/query. Faster resolution means better customer experience.

Higher customer Conversion rate implies customers have a great journey with your brand.
Conversion rate

Percentage of prospects who turn into customers. Higher rates imply a great customer exprience.

Can you easily recruit new customers? That's the sign of a great customer experience.
Customer acquisition rate

Ease of getting new customers. Better customer acquisition rates mean an excellent customer experience is what you provide.

Keep a close watch on Social Media and track how good is the customer experience your brand provides.
Social Media

Great social media presence and customer monitoring results in better customer experience.

Customer Experience vs Customer Support

Customer experience and customer support are not the same. Support is a subset of customer experience. It is simply defined as the aid offered by an organization to customers so that they can use the product/service without much hassle. On the other hand, customer experience is the overall journey of a customer with a brand right from acquaintance with the brand to the purchase; if the customer experience journey is exceptional, the brand is sure to have won a customer for a long-lasting period.

  • A great customer support contributes to the overall improved customer experience.
  • Customer support is limited to a single touchpoint while CX encompasses all such interaction points with customers.
  • Customer support focuses on solving customer queries/ issues while customer experience focuses on improving interactions at every point of interaction.
Know the underlying difference between Customer Experience & Customer Support.

Customer Experience- Get started

Here's a customer satisfaction survey template for you to help you take the first step towards flawless customer experience. Measure customer feedback, gauge their happiness and work on the improvements.

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Form

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"SurveySparrow is an awesome survey software when it comes to completion rate. It helped me get 93% of completion rate for my recent survey, which I got below 25% with another tool."

Customer Experience- FAQs

Customer experience is the journey a customer has right from the very first time of interaction until the final purchase with the brand. It is a holistic approach to ensure customers are happy, satisfied, and turn into loyal ambassadors for the brand.
There are different strategies and metrics that’ll help you measure and improve the customer experience your brand provides to customers.
It is defined as a system in place to ensure customer satisfaction, engagement, and happiness at every crucial customer touchpoints. CEM/CXM aims to stay customer-focussed and turn customers into brand evangelists.
With customer journey mapping, you can efficiently pinpoint the points of interaction with customers. Consequently, you can take measures to make sure that the customers face no hassle at all points of contact. Therefore, the overall customer experience improves.

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