Retaining existing customers is a big business priority as they bring more top-line revenue and cost less to acquire than new ones. Customer experience drives this process by building brand trust and loyalty, resulting in repeat purchases and a higher share of wallets.
CX isn’t limited to customer service but marketing efforts, product design and merchandising choices, supply chain decisions, and even branding. It may be challenging to monitor and quantify.
Definition of CX
What is CX? Monitoring and quantifying it took work. A positive perception leads to loyalty and repeat purchases, while a negative one drives customer churn.
Social media and online reviews allow customers to rapidly and extensively communicate their interactions with your business. A positive CX is, therefore, essential. Investing in your CX strategy pays off, according to data that revealed that organizations that prioritize their customers saw increases in sales conversion rates of 15 to 20 percent and decreases in service expenses of 25 to 50 percent.
CX includes all interactions with your company, from when a buyer encounters your brand to when they leave. It encompasses everything from product and website design to shipping and email newsletters. It also includes the way your company handles support requests and customer feedback. For example, a coffee shop’s CX may include how staff members greet regular customers by name or how the store is designed to be intuitive and easy to navigate. Similarly, a healthcare provider’s CX may include patient portals allowing personalized communication and automated processes.
What is CX Strategy?
CX strategy is the plan for achieving your brand’s promise to customers and meeting customer expectations. It outlines how you’ll meet those expectations by improving ticket resolution times, reducing churn, and encouraging customer loyalty.
It also explains how you’ll gather feedback from your target audience to improve the experience. It can be done by deploying post-interaction surveys, listening to recorded phone calls, or using analytics tools. It can also be accomplished by leveraging community forums like Microsoft, where customers are invited to make feature suggestions.
The strategy must be deeply integrated with your CS strategy. While it’s often seen as a marketing function, from a goal perspective, it’s best served by the department that owns the customer relationship. Traditionally, this has been CS teams.
To be successful, the CX strategy must drive tangible ROI for the business. It is achieved by aligning customer metrics with business challenges, implementing systems to track and achieve improvement goals, and demonstrating impact through ROI analysis. It also requires avoiding common pitfalls, including failing to link CX to value and taking a narrow view of the CX journey.
What is CX Metrics?
CX metrics help you identify the specific areas of your business that require improvement. They include a variety of metrics, including Net Promoter Score (NPS), Customer Effort Score (CES), and Customer Satisfaction (CSAT) scores. Typically, these are used for measuring the overall experience of a brand rather than individual interactions.
According to NPS, a measure of customer satisfaction, consumers are asked to rate how likely they are to suggest your product or service to others on a scale of 0 to 10, with 10 being the most likely response. This metric is popular because it’s simple, easy to understand, and highly correlated with revenue and retention.
In addition to NPS, you should consider a range of other CX metrics, including customer effort, first contact resolution, up-sell and cross-sell rates, behavioral analytics, and conversion rates. Take your time with the number of metrics available; start with a handful and expand your list as you gain more experience with your program. Be sure to track and report on your progress regularly so that your team and stakeholders can see the impact of your efforts.
What is CX Analytics?
CX Analytics collects, analyzes, and evaluates customer data to measure and improve the customer experience. This data type predicts what customers will do in the future, enabling businesses to make strategic decisions to drive more business and increase customer loyalty.
When companies gather and utilize CX analytics, they can use predictive models to identify customer segments and create targeted messaging and communication. The analytics can also identify opportunities to reduce churn and attrition by proactively contacting customers who risk leaving the brand.
However, implementing a system of CX analytics requires more than just collecting and analyzing data. Leaders must also ensure the right teams are in place, break down silos across departments, and encourage cross-functional collaboration. Additionally, they must implement a process for validating and cleaning customer data to ensure they have the most accurate Single Customer View (SCV). It allows for more timely decision-making by allowing leaders to spot issues before impacting brand reputation and revenue.
What is CX Measurement?
There are many metrics you can use to measure customer experience. The most popular is the net promoter score (NPS); this simple survey asks customers whether they will recommend your business to others.
Another helpful metric is the customer effort score (CES), which asks customers to rate how easy it was for them to use your product or service. It is a great way to identify areas where you need to improve user-friendliness, such as making your website more intuitive or adding helpful guides for new users.
It’s also vital to track retention, churn rates, and customer trend data to ensure your CX efforts have the desired impact. It would be best to tweak your processes to ensure that support teams get customer feedback quickly enough or that marketing can access customer data to send targeted emails. It will help you make the necessary improvements to grow your business and boost revenue.