What is Customer Experience?

Customer Experience

For a company to prosper, it should be able to provide quality customer experiences. The better they do this, the greater their chances are of gaining new customers, keeping loyal customers, making a profit and ultimately, staying in business. In this article, we will define customer experience, why it's important and how to improve it.

What is customer experience?

Customer experience refers to the interactions between a customer and a company throughout the span of their relationship. Customer experience is made up of two elements—customer perception and their interaction with a brand. When a customer goes to a store, for example, their perception of the brand during their visit will influence how they feel about their overall trip. Also, their interaction with various sales representatives will affect their sentiments, as well.

Why is customer experience important?

A company needs customers to operate, therefore, customer experience is important for several different reasons. The more brands work to create better customer experiences, the greater the growth potential will be for the company. If utilized correctly, customer experience has the potential to make sizable benefits for a company. Here are some reasons why customer experience is important:

Customer retention

Good customer experiences play a large impact on brand loyalty and customer retention. Ultimately, companies want their customers to be happy. The more positive experiences a customer has with a brand, the greater their chances are of coming back. Quality customer service is one way to ensure this. Because customer service involves a customer's interaction with a company, it has the potential to impact their overall customer experience. Oftentimes, it's easier for companies to retain customers than gain new ones, therefore, it's important to continuously meet the needs of current, loyal customers.

Also, loyal customers are more apt to try new company products and services and pardon the company should any problems arise.

Brand advocacy

Customer experience is also important because it could lead to brand advocacy. The more memorable experience a customer has, the greater the likelihood is of them sharing their experience with others. Consumers are so often influenced by word-of-mouth and for businesses providing good customer experiences, this could drive sales at the end of the day.

Added revenue

Customer experiences also have the potential to increase a company's revenue. For one, a loyal customer will likely add to a company's revenue through their increased spending. As mentioned above, if customers have a positive experience, they might share it with others in their circle. Their glowing review could influence others to purchase from the company, thus increasing its sales and revenue.

Customer experience vs. customer service

Though business owners are concerned with both customer experience and customer service, the terms themselves are vastly different. Whereas customer experience deals with the overall journey a customer has with a brand, customer service refers to the support and help a customer receives from company employees. This is oftentimes limited to one interaction whereas a customer experience tends to encompass many.

Customer experience extends far past the scope of customer service itself. In other words, customer service creates interactions that are just one part of the equation that makes up a customer's overall brand experience. This is because their experience with a brand is not solely based on one customer service encounter, but several other factors, as well.

Oftentimes, customer service only occurs when a customer is unhappy or dissatisfied with a product or service. In this case, a business can only remedy the situation once a customer has reached out. In regard to customer experience, companies can take the actions needed far in advance to ensure a customer has a quality experience.

Ultimately, though customer service can impact one's customer experience, the two terms carry far different meanings.

How to improve customer experience

When developing a business strategy, customer experience should be front and center. To have a successful business, companies should create a quality customer experience. Here are some methods for improving customer experience:

1. Know the customer.
2. Inspire employees.
3. Improve efficiency.
4. Improve reachability and customer connection.
5. Get customer feedback.

1. Know the customer

Companies should understand their customer's needs and wants to deliver an experience that will keep them coming back. They can do so by observation or in referring to online reviews of their company. Once they understand their customers, the better they'll be able to fulfill their wants and needs. Understanding the customer also means understanding their ideal customer experience. Companies should put themselves in the customer's shoes and ask themselves how they'd want their brand to be perceived. Based on this answer, they'll be able to develop a strategy to improve customer experience.

2. Inspire employees

One great way to improve the overall customer experience is to inspire employees to deliver great customer service. For example, if a sales representative displays quality customer service, this could positively impact not only a customer's perception of the brand but their decision to return as a customer, as well.

3. Improve efficiency

Improving efficiency in the workplace is a great way to increase a customer's overall experience with a brand. Typically speaking, the more efficient a company's employees are, the happier the customers will be. For example, if someone were to walk into a clothing store but the line was out the door because the employees couldn't keep up with customer needs or demands, this could negatively impact a new customer's perception, make them want to leave and in some cases, purchase from a similar brand in the same industry.

4. Improve reachability and customer connection

Consumers want to feel connected to the businesses they interact with and purchase from, therefore, it's important for customers to provide a genuine connection with them. Companies should work hard to make sure their customers feel like part of their corporate family. This also involves creating an emotional connection with customers. Oftentimes businesses are perceived as only wanting to make a sale. When a company shows it has a heart, this will go a long way in customer retention and admiration.

5. Get customer feedback

A great and easy way to improve customer experiences is by directly asking customers how they feel about the company at hand. This will give business owners clear insight as to how they're being perceived. Depending on the feedback, companies will be able to develop a strategy to improve operations from here forward.