Do you remember a time when, from the second you walked into a store, you were greeted by friendly staff, a welcoming atmosphere, and the entire experience left you feeling great? You likely left the store with a huge smile on your face, itching to tell your friends and family about the amazing experience you had and thinking that you need to go back to that store.
Now think back to when you had a terrible experience trying to buy something or order a service. The anger and frustration made your blood boil, and you swore to yourself that you would never use that business again.
These two feelings show the importance of Customer Experience (CX). CX is the result of every interaction a customer has had with your business and the impression your brand leaves in their mind. The entire customer journey determines whether they will return to your business or not, which is why a customer-centric CX strategy is vital to the success of your business.
This blog will discuss three reasons why customer experience is essential to your business success and how a positive CX will drive sales and increase your revenue.
Customer Retention is More Profitable Than Generating New Customers
The business world has a lot of controversy regarding which is better, customer retention or acquisition. However, the fact of the matter is that customer acquisition, while rewarding, can be highly time-consuming and expensive.
As a business, building loyalty and a positive association with a new customer takes time and money. In contrast, the costs associated with repeat business are considerably lower, from both a sales and a marketing standpoint. With repeat business, your ad spend is lower because you have already built a connection with these customers, so you have a better chance of making a sale. The book Marketing Metrics explains that the sales conversion rate for an existing customer sits at around 60 – 70%, whereas an entirely new prospect has a conversion rate of only 5-20%.
It is vital to build a CX strategy that is centred around long-term customer loyalty. Repeat customers are statistically far more likely to make a purchase when they visit your business. They are also generally willing to spend much more because they are satisfied with their customer experiences and know the level of quality and service they will receive.
Customer Experience is Free Word-of-Mouth Marketing
The impression that your customers have of your business is now far more likely to be shared thanks to the help of social media platforms and the internet. If your customer experience is positive, loyal customers will become advocates for your business and share their experiences with others, helping attract new customers at no extra cost to you. When your customers share their positive experiences, it piques the curiosity of others, so people are encouraged to interact with your brand to see the top-notch service for themselves.
While a negative online review can deter prospective customers, positive online reviews strengthen the online presence of your business, increasing the visibility of your brand and attracting new clientele.
A Better Customer Experience Sets Your Brand Apart from Your Competitors
When your business provides a customer experience that exceeds expectations, you take your customers on a journey that breeds an emotional connection and loyalty. You won’t need to ‘remind’ customers why they should use your services or buy your products because they will already know.
A review conducted by SuperOffice determined that 86% of buyers are willing to pay more for better customer service. So even if your competitors may have lower prices, if your customer experience surpasses theirs, customers will be more likely to use your business. When developing your CX strategy, consider rewards programs like coupons, free shipping offers, and lower prices for repeat customers, especially if your company operates in the e-commerce sector. It will set your brand apart and increase the positive perception of your business even more.
Customer Experience is a foundational element of the success of your business. If you need assistance improving your strategy or are curious about how you can improve your customer experience, contact Customer Perceptions today or visit our website to view our list of expert services.