What Impact Does Customer Experience Have on Business? Learn Examples, How to Measure, and Improve It
Customer experience (CX) is not limited to activities and transactions in a business. However, Customer experience is a combination of transactions, feelings, empathy, and consumer trust in a business.
Good CX also helps your business gain loyal customers and increase sales figures.
Therefore, see the explanation of the meaning, examples, how to measure, and improve customer experience in this article.
What is Customer Experience?
Customer experience is a business process of building trust and close relationships with consumers. Starting from the marketing process, sales, to customer service. So, in short, customer experience is the result of your business's interaction with consumers.
The results of these interactions, as explained above, produce actions and feelings. The actions in question include transactions and repeat purchases (repeat orders). While feelings in customer experience mean feelings after using a product, feelings after interacting with a business, consumer trust, and loyalty.
Quoting Oracle, a successful customer experience strategy must consider competitor activities, market and consumer data, and the company's internal targets. In implementing this strategy, all teams, be it sales, marketing, product, IT, and customer service must have the same mindset, which is to provide the best experience for consumers.
Why is Customer Experience Important for Business?
Consumers want to feel connected, respected, and remembered by their favorite brands. Therefore, good CX will differentiate your business from competitors. In the process of building a good customer experience, businesses must create memorable interactions and provide a sense of pleasure and trust in the brand.
There are several factors that make a strategy and effort to build CX successful:
- Does the business marketing campaign strategy represent consumer needs?
- Is the business website easily accessible and usable by consumers?
- How effective and influential is the business strategy in helping consumers, both in terms of sales and service?
- Does the business recognize its consumer profile? Is this information used to make consumers feel known and respected?
However, what do good and bad customer experiences look like? See the explanation below.
Examples of Good and Bad Customer Experiences
Examples of good or successful customer experiences
Consumers who make repeat transactions and give praise to your product can be examples of good customer experiences. Positive CX is usually driven by:
- Relevant marketing campaigns and efforts
- Discounts and promotions that benefit consumers
- Consumer service that is always available and offers solutions
- Shopping sites that are easy to access and use
- Easy purchasing or transaction process
- Consumers can easily contact company representatives
- Product improvements based on consumer feedback
A good customer experience will use various channels and platforms to get to know and listen to consumer complaints and input.
Example of a bad customer experience
Consumers will feel disappointed and frustrated with your products, services, and brand. Consumers will also stop buying and using products, and switch to competitor products.
These various impacts come from feelings of not being considered, not being understood, not being respected, to consumers finding it difficult to transact with your business.
Some forms of bad customer experience include:
- difficult to use site
- product not according to needs
- product not according to expectations
- product breaks easily
- slow and non-solutive customer service
- irrelevant marketing campaign strategies
How to Measure Customer Experience
Reporting from HubSpot, here are four ways to measure customer experience:
Create a customer satisfaction survey
The customer satisfaction survey should contain questions such as:
- Rating 1-10, how easy is our site to use?
- Why did you give that rating?
- Rating 1-10, how satisfied are you with our product?
- Why did you give that rating?
- What is your feedback on our product?
- How long have you been using our product?
- When was the last time you bought and used our product?
- What new features do you need from our product?
These questions are examples and steps to encourage consumers to provide feedback. It is also important for you to understand more deeply the reasons why consumers give these ratings.
If necessary, you can ask for consumer contacts to be contacted if there are further questions regarding the survey results.
Analyze survey results
After the survey has been collected according to target, analyze the results. Read and understand consumer answers. If necessary, group similar answers to find out what kind of input is the most and can be applied by the business. Use this stage to contact consumers regarding the survey results and provide promo coupons as a form of appreciation. This will help improve customer experience.
Identify what percentage and reasons consumers stop buying products
Every business must ensure consumer retention and loyalty. Therefore, if there are consumers who stop buying a product, you must know the reason. By knowing this, the business will get input that can be a change to attract the attention of old consumers.
Analyze complaints and input from various platforms
In addition to surveys, don't forget to read complaints and input from social media platforms. Starting from messages, comments, to content created related to complaints about your product.
How to Improve Customer Experience Quality
- Provide personalized service (example: using the consumer's name when replying to messages).
- Increase the efficiency of problem-solving duration and satisfactory solutions.
- Maintain product consistency and communication to consumers.
- Deepen empathy and sympathy to provide the best customer service experience.
- Follow up after satisfaction surveys or problem solving.
- Increase the customer service team to be able to receive complaints for 24 hours.
Customer experience is an important part of business because of its impact on consumer loyalty to your product.
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