Advantages of customer experience management

Advantages Of Customer Experience Management

Customer experience management is a strategy for optimizing customer interactions with your company. It is often used to improve customer service and sales, while also reducing costs, but it can be applied in any area of business that has contact with customers. 

The goal of customer experience management is to create an environment where your company's employees are always providing the best possible service by following a set of proven guidelines as well as understanding their role and how they affect the overall customer experience. Customer experience management focuses on making sure that every interaction between each employee and their customers will have no negative impact on those interactions or future ones. 

So why not make your company more attractive by implementing this strategy?

Best practices to achieve a competitive advantage

Customer experience management allows you to create more personalized experiences for each customer. To achieve that, you need three factors: technology, experience and data.

Customer experience technology

Contact centre and customer engagement technology is a foundation that makes customer service possible. You must have the capability to engage customers wherever they are, be it voice, text or social media. Without a variety of service channels supported, you can't engage with customers or create a memorable experience. But this is just the first layer. Creating exceptional experiences requires something above and beyond technology.

Experience with customer experience

It requires knowledge workers that understand customer lifecycle and journey management. These workers can identify various problems or opportunities present in the relationship and predict future behaviours. Having that knowledge and consultation from the right professional team allows you to get ahead of customer needs and offer predictive, prescriptive service to wow the customer before they even know you need to be there.

Using customer data

Using data is key in understanding how your customers want choice, convenience and control. Data shows how they interact and do business with you. And data reveals not only what the general journey looks like. It also reveals where to go and how to tailor specific interactions. 

It lets you demonstrate that you know the customer is on a journey and care about more than the end destination. With data about their past interactions, you make the right decisions at the right time for where the customer is currently at in their journey. 

Benefits of positive customer relations

Positive customer relations can result in various benefits for your company, including more potential leads and higher customer retention rates. Here are the top three benefits that positive customer relations can provide for your company to narrow it down.

Customer retention

Companies that do better manage customer relations are more likely to see higher customer retention rates. In fact, studies show that 61% of customers stop buying from a company if they have a poor customer experience

Customers know when your company is genuine and willing to overlook your mistakes so long as you are dedicated to their success. 

That type of transparency is essential when reducing churn as well as when you're building a positive customer relationship. 

It can also be financially beneficial, as studies show that increasing customer retention rates by just 5% can increase your profits by 25% to 95%.

Customer loyalty

Having a good history with your customers makes it more difficult for your competitors to lure people away from your brand. Customer loyalty is highly valuable for businesses as repeat customers are more likely to buy from you than leads that have not yet converted. Building positive customer relations drives customer loyalty because it creates an intangible incentive for the customer to return to the same business. 

thinkJar Research even shows that 55% of consumers will pay more money for a product or service if it's a guaranteed good experience. While it may cost more for companies to invest in building positive customer relations, the payoff in customer loyalty can be instrumental in generating consistent revenue over time.

Customer satisfaction

Often it can be hard to tell whether your customers are truly happy with your business or not. 91% of unhappy customers who don't complain simply don't return to a company for another purchase. Having strong customer relations can act as your insurance policy for preventing these unidentified customers from churning without warning.

Positive customer relations give companies more insight into their customer's problems because it creates an open communication channel for relaying customer feedback. This leads to better individual interactions with customers, building trust over time and influencing their buying decisions. Studies have even found that consumers believe that a good experience with a company influences their purchase decision more than advertising does. 

So while the commercial of the cute dog may get a smile or two from your target audience, customer satisfaction is the result of your brand creating memorable customer experiences.

Every company should aim at building positive customer relations but hitting your target can be a lot easier said than done. It takes a complete effort from the entire company to build a long-lasting and trustworthy customer relationship. In the next section, we break down some of the important components needed for fostering positive customer relations at any company.

Building positive customer relationships

Since customer relations considers all of your customer interactions, many factors can influence a customer relationship. Therefore, when building positive customer relations, organizations need to take a company-wide approach focused on promoting customer success. To do that, here are three key factors that any business should consider when pursuing positive customer relations.

Invest in employee training.

A great customer experience comes from the product being sold and the employees who interact with the customer. Therefore, your reps must be highly skilled in their trade and motivated by quickly solving customer problems.

Customer service training may include developing some of the "soft" skills such as improving active listening, developing a professional communication style, and how to solve problems efficiently in your organizational framework.

While you might expect your reps to have these skills when you bring them on, continual training helps align the entire team to your organization's brand standards, policies, and procedures, resulting in a more consistent experience across the board.

Create a fulfilling workplace for your customer service reps.

Richard Branson of Virgin Airlines famously said, "If you take care of your employees, they will take care of the clients." This seems intuitive: If a customer service rep is having a bad enough day that the customer perceives this, it can change the tone of the experience.

Studies have also shown that happy workers are also 13% more productive, and in the service world, productive reps and quicker resolution times lead to higher rates of customer satisfaction.

Improve first call resolution rate.

86% of customers will pay more for a better experience, and great customer experiences are becoming the norm in today's marketplace. One of the metrics to look at when creating a frictionless service model is first-call resolution (FCR). FCR refers to the percentage of calls that get resolved with no follow-up or additional touch points needed. 

It's a critical metric that improves satisfaction (no one wants to call multiple times about one issue, and more calls equate to more frustration) and your team's internal efficiency. In addition, the more calls that are resolved completely, the less your system is taxed by call volume. 

Your service and support teams should be equipped and enabled to handle the majority of issues that customers present. 

Leverage software to increase efficiency. 

Speaking of enablement, companies faced with higher volumes of support and service cases should consider adopting customer service tools to help manage customer relations. Adding help desk software can significantly help customer service, support, and success teams monitor customer interactions over time. 

Tools like a customer relationship manager, or CRM, can help your team expand its bandwidth and create satisfying experiences for every person interacting with your business.

Create opportunities for self-service. 

You may not have the bandwidth to provide on-demand one-to-one support at all hours of the day. Instead, ensure that you're providing the tools for your customers to get help when they need it, even without the help of a rep. 

Chatbots can help disseminate information and guide website visitors to the right areas on your website. In addition, knowledge bases can address some of the most common questions customers have. 

Even though some customers will prefer calling in, these simple steps can address the problems of your more self-sufficient customers and increase satisfaction by continuing to solve problems on demand. 

Be accessible. 

That isn't to say that you should replace reps with self-service solutions altogether. To provide an excellent customer experience, your service and support teams need to be readily available to help. A Microsoft survey revealed that over a third of consumers reported that their biggest complaint with a company is not to get help from an agent when needed.

While it helps to have things like self-service help desks, your team still needs to be there when the customer has a problem. Technology can help ease some of the stress for your customer service team, but it can never recreate the memorable experience that a live rep can provide. This human interaction is crucial to creating a meaningful relationship between a company and its customers.

Show appreciation. 

Part of creating a great customer experience is providing small moments of delight where you exceed their expectations. This is particularly important as our culture is shifting away from brand loyalty and toward the brands that provide the best experience. Consider rewarding your best customers with a loyalty program or other small token of your appreciation.

Measure and improve customer satisfaction. 

Making your customers happy doesn't have to be an intangible effort. Ask for feedback from your customers and develop a system for measuring that feedback. This could be in the form of customer satisfaction surveys and NPS scores.

If you do, also ensure that you're committed to acting on the feedback you receive. Then, as you see scores improve and feedback get better, you know you're on the right track. 

Create a customer-first culture.

Companies that want to create positive customer relations need to instil a customer-centric culture into the organization. This culture has to be focused on customer success as well as creating long-term solutions for every customer. Companies can create a customer journey map that outlines the buyer's journey for a target consumer. Employees will be more motivated to help customers as they can see exactly where they play a role in their success. It also helps to hire a customer relations executive who can lead the development of customer relationships.

Why is customer experience important for your brand's success?

Customers pass through several touchpoints when interacting with brands. Many of these before, during, and after purchase, and they are equally important. 

At any touchpoint, a single bad experience can derail all your efforts to deliver a great customer experience (CX). 

While brands make sure they provide a good customer experience to their clients, they miss a few touchpoints or must-dos. 

This blog will look at why CX has to be the topmost priority for your organization. It needs to be the brand's key goal so that all functions and employees can align their goals accordingly. In this post, we look at seven key reasons why customer experience is important for any business.

Increasing revenue

As we have already established, a satisfied customer will keep coming back for more of your products and services. Research shows that loyal customers contribute to a 300 percent revenue increase over a period of three years. That is in sharp contrast with a dissatisfied customer base which can reduce your revenues by up to 14% within a calendar year.

These numbers are too compelling for any serious businessperson to ignore, particularly bearing in mind that improving customer experience is a simple thing to do. A simple act of taking feedback from clients and then using them to improve your services is all you need to satisfy the customer. It is more about showing a genuine effort of going a step further in order to solve the customer's problem.

Delivering exceptional customer experiences ensures high customer loyalty and customer retention. The higher the customer loyalty, the more purchases they will make from you. Not only that, but loyal customers also help in spreading your positive word of mouth for your brand and provide new customers through referrals. All these significantly impact your organization's business revenue positively. What company doesn't want to improve its financial performance?

Apple makes for a great example when it comes to customer loyalty. They make great products and provide exceptional customer service. They have some of the fiercest loyal customers on the planet.

Your competitor is keen on poaching your loyal customers.

It doesn't matter how long you have been with a given loyal customer. He or she will be tempted to leave for a better deal elsewhere. Unfortunately, your competitors know that loyal customers form the backbone of your entire business, and if that backbone is destabilized, your business will come crumbling down. You, too, must be breathing on your competitor's neck if you want to win some of their loyal customers over to your side. How, then, do you safeguard your customers from the poachers, and how do you successfully poach customers from competitors? It is only through having the best customer experience.

Great CX = engaged employees

According to a recent survey, organizations that deliver great CX have 1.5 times more engaged employees than organizations that don't. An engaged staff is an asset to any organization. They are loyal, great team players, dedicated, and align themselves with company goals. Studies suggest organizations with highly engaged staff outperform rivals by 147%.

CX and employee experience (EX) are inextricably linked. Highly engaged employees positively influence the customer experience. They proactively look to find new ways and realize them to deliver exceptional customer experience.

Becomes a part of your culture

Customer-centric organizations always have customers in their minds and how they can delight them in different ways. Building a customer-centric culture is not an easy task, nor can it happen overnight. You can start by making it a part of your organizational culture. You need to remember a few things to build a customer-centric culture in your organization:

  • Always empathize with the customer
  • Recruit candidates in accordance with your culture
  • Link employee compensation with customer-centricity
  • Encourage customer interactions

It is the genesis of brand advocacy and community marketing.

Brand advocacy is a case where satisfied customers talk to different social media platforms to praise a business, its customer services, and the quality of its services and products. Others use word of mouth to campaign for a brand to their peers and family members. 

That is a very effective campaign strategy for any business, both local and international. The opposite of this is where dissatisfied customers spread negative reviews about a company and its products to the extent that many prospective customers opt to shop elsewhere.

In either of the two scenarios above, the common denominator is customer experience. And with the increasing internet usage across the world, social standing and age notwithstanding, you cannot downplay the significance of good reviews online. They lead to increased shares and tweets for your social media content, as well as online traffic to your website. This is how your website gets good rankings on Google and other search engines. Good SEO ranking is one of the most effective strategies to acquire customers online.

Putting a human face to your business

Gone are the days when you could run your business behind the curtains and only come out to distribute the final product to the customers. Today, clients want to interact with your business at a personal level each step of the way. 

If you share backstage information with customers as well as give them a glimpse of the personal lives of staff members, you create a unique rapport with those customers. Humanizing your business is key to its future growth.

It makes you a better company.

Brands that build their strategies and initiatives around great CX are companies that do well and innovate constantly. Such brands are great incubators of ideas, marketing campaigns, and initiatives and are better companies. 

They focus on customer pain points, look to resolve them actively, and do so with the easiest and most effective solutions. These needn't always be big solutions that require large sums of money.

Rackspace, a cloud infrastructure company known for its exceptional support, is a great example. One of their employees was on the line with a customer troubleshooting an issue. The call had been going for a lot of time and would have lasted for a considerable time. The support representative, while on the call, heard one of the employees mentioning they were hungry. The support representative put them on hold and ordered them a pizza, much to their delight. That is the power of having a unified goal of delivering outstanding customer experience and support.

Frequently Asked Questions

The CX team comprises the staff that does the critical underlying work to ensure that the customer experience solves problems for customers and meets their needs. Basically, the team keeps the CX engine humming, so to speak.

Great customer service means following best practices like valuing customers' time, having a pleasant attitude, and providing knowledgeable and resourceful resources, but that you also take things a step further to exceed — rather than just meet — expectations.

Marketing (or in some organizations “product”) is the most common set up for CX in brands' corporate organizations. ... At first look, it makes sense to set CX in marketing. After all, the purpose of CX is to deliver on the brand promises that marketing makes.

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