Customer loyalty can be improved and sales can be increased with great CX. Discover how to create, carry out, and monitor a successful customer experience strategy.
The term “customer experience,” or CX, has been spoken about a lot in recent years. It differs from other industrial jargon. If customer experience is handled properly, it may boost sales and strengthen brand loyalty. Here, we’ll explain everything to you in more detail. You’ll discover what the term “customer experience” means and why it’s crucial.
In addition, there are four tools to make your life simpler, seven starting pointers, and how to measure it. Don’t be alarmed; that final one does need some arithmetic. You don’t need to be familiar with isosceles triangles, we guarantee. You’re welcome to erase that knowledge from your memory.
What is Customer Experience?
Customer experience (CX) refers to how customers feel they interacted with your business. It is the culmination of how customers feel about your brand after each interaction with it. The experience of a consumer will mostly be shaped by two pillars:
- Your brand
- Your product or service
First, their perception will be shaped by how they experience and engage with your brand. The consumer experience depends heavily on your branding initiatives, particularly how you seem and sound. Avoid seeming disorganised or unprofessional. A consumer will presume you are dirty and unprofessional if you do. It’s unfair, yet appearances are everything.
Nike is a good example. Both in sports and fashion, the Nike swoosh and the slogan “Just Do It” are recognisable symbols. This is the end product of years of meticulous, reliable branding.
What is Customer Service Management?
Customer experience management (CXM) makes ensuring that each time a customer interacts with your company, they have a great experience. Let’s delve more into this word since it can be a little hazy.
Surveying, examining, and enhancing client encounters with your business are all part of customer experience management. CXM is all-inclusive. The range includes everything from how your staff handles clients to how quickly they are recognised to the layout of your website.
Importance of Customer Service
Customer experience is more critical than ever in today’s competitive market. Customers that are happy with your service are more likely to use you again and tell others about you. Social evidence also makes a sale. People are more inclined to believe recommendations from friends and family than from brands. User-generated material is one common type of this social evidence (UGC).
Additionally, satisfied clients frequently spend more money with your company. If they stay as clients for a lifetime, their worth to your company soars. Therefore, you want to create as many loyal clients as you can. Your customer’s lifetime value (CLV) may be calculated. This will demonstrate how much money you should set aside for their transportation. Naturally, increasing their client experience is a component of it.
The following is the formula to determine your CLV: CLV is calculated as (Annual income per customer x Customer Relationship Years) less Customer Acquisition Cost (CAC). Customer experience management has the potential to be an effective instrument for fostering long-term success and growth.
Measuring customer experience
You should include customer experience measurement in your customer experience plan. But how can you gauge another person’s emotions, you ask? with icy, precise figures. Here, we go into further detail on customer service measures. However, we’ve highlighted noteworthy ones below to save you some time. Customer experience measures that are often utilised include:
- Net Promoter Score
- Customer Effort Score
- Customer Satisfaction Score
- Average response time
Net Promoter Score (NPS)
NPS = Percentage of promoters — Percentage of detractors
The Net Promoter Score uses a 0-10 scale that shows how much your customers like and trust you. It is not that complicated as it just comes down to, “on a scale from 0 to 10, how likely are you to recommend this product/company to someone you know?”. If they fall under 6, they’re detractors. 7 to 8 makes them passive, while 9 to 10 makes them promoters.
Customer Effort Score (CES)
CES = (Number of customers who select 4-5 / number of survey responses) * 100
CES tracks the level of effort a client puts out when working with your company. These surveys highlight the customer journey’s pain spots. Customers are asked to rank their effort level on a scale of 1 to 5 in CES surveys. You can ask from your consumers, “It was simple for me to return my merchandise. “Strongly agree” to “Strongly disagree” on a scale.
Customer Satisfaction Score (CSAT)
CSAT is calculated as (Number of survey respondents / Number of pleased customers) x 100
The CSAT and NPS are comparable. It includes a few more questions that may be tailored to fit your company. The experiences of the clients should be the focus of every query. You may, for instance, ask your clients to rank various aspects of your brand from 1-3 or 1-5. How pleased were you with the help you received, perhaps? In your CSAT survey, you may also include open-ended questions such, “How can we better improve your experience?”
Average Response Time
Average response time is calculated as follows:
Total time for initial customer responses / total number of inquiries
Knowing your typical reaction time is important since individuals enjoy receiving acknowledgement. Despite the fact that it’s a bot, it still makes people feel valued and heard. Additionally, businesses are employing bots to speed up response times and boost customer satisfaction.
7 Tips to enhance customer experience
1) Investing in your brand
Initial impressions matter. If you make investments in your brand, your consumers will notice. Make sure your visual expression, brand identity, and communication plan are all unified. It’s comparable to going to a job interview with a suit and tie as opposed to a pair of worn-out sweatpants. People may mistakenly think you are who you seem like if you appear and voice a specific way.
2) Investing in Customer Service
It’s doubtful that someone would remain loyal to your brand if they have a negative encounter with your customer service staff. On the other side, if a consumer has a poor experience with your goods or services but receives excellent customer service, you may be able to convert them into a repeat client. Your customer service experience has value that goes beyond sales. An excellent customer service encounter can:
- recoup the expenses of client acquisition
- build devoted brand advocates who recommend the business to their friends
- encourage feedback and reviews
3) Customer journey map
It would be simpler for you to envision yourself in their shoes if you have a customer journey map. It is possible pain sites that can be identified by comprehending their path. Customers will return if you make it simple for them to carry out important actions like searching, checking out, or returning. They will appreciate you for making those boring duties enjoyable.
4) Having a buyer persona
Buyer personas assist you in understanding who your consumers are and what they want, just like customer journeys do. You can view every contact point your customers have thanks to customer journeys. You can learn how to make those touchpoints more pleasurable with the help of consumer personas.
5) Understanding customer churn
It’s typical to have some client turnover. Customer experience may be enhanced by knowing the causes of your turnover. Look for the areas where consumers tend to leave and investigate the possible causes.
A simple technique to comprehend customer attrition is to solicit and act upon feedback. A CES survey could be used to acquire data. Alternately, examine patterns in customer service ticket volume. This is especially helpful if you work in the software sector to discover where your product falls short.
6) Asking customers what they want
Assuming they are aware of what their clients want is a typical error made by business owners. Requests for new features or products from your audience may surprise you. If there’s one method to win people over, it’s to listen to their requests before fulfilling them.
You may achieve this by conducting polls or by asking visitors to your contact page’s open comment area what they would like to see more of. Examine discussion boards like Reddit and pay special attention to other review sources. These offer a free glimpse into the viewpoints of your clients.
7) Use chatbots to reduce response time
The creation of a great customer experience may be accomplished quickly, affordably, and largely painlessly by using chatbots or AI-driven technology. Utilize bots for serving consumers who need general customer service, FAQ responses, or assistance with the sales process.
Additionally, you may employ bots with your Instagram and Facebook channels. By doing this, you’ll boost your social media client experience. With the correct software, you can assist your clients in reaching their destinations more quickly. A chatbot can:
- Improve your average response time
- Offer your clients round-the-clock service
- Rerouting your human personnel to more difficult jobs
4 Customer experience tools to try in 2022
If you want to master your customer experience strategy, think about adding some tools to your toolbox. You may automate, evaluate, and take care of chores that directly advance your objectives with the use of customer experience survey software, chatbots, and analytics tools.
Heyday is a simple win for your customer experience strategy since it’s a small chatbot with a lot of potential. You may improve the consumer experience on your website by:
- establishing a connection with your product catalogue to give personalised search results and in-chat suggestions
- only involving your employees when clients are prepared to make a purchase
- making your consumers feel at ease using conversational AI
- increasing your response time on average
2) Hootsuite inbox and analytics
You may browse, react to, or filter messages from several social networks using Hootsuite’s inbox (and even SMS messages). And, it’s all in one vision. It simplifies your life and may speed up your reaction time.
Understanding client attitudes is made extremely easy with the use of the Hootsuite analytics tool. You can see right away what kinds of social media postings are effective so you can choose where your clients want you to concentrate your efforts going forward.
In similar vein, social listening and analytics are available through Hootsuite Insights. Your earned social mentions may be tracked with this tool. The social sentiment of your brand may then be measured. Improve the consumer experience suitably from there.
Most importantly, you can utilise Hootsuite’s brand monitoring features to recognise when irate clients are complaining about you on social media and reply to them right away before things spiral out of control.
3) Google Analytics
A good resource for identifying the causes of client turnover is Google Analytics. Utilize it to keep track of user search requests; doing so will reveal your audience’s constant needs.
Observe your conversion rates. If they’re below the industry standard, you could have a problem that has to be addressed. Pay attention to your bounce rates in a similar vein. These might highlight trouble spots.
A survey software package is called AskNicely. It interacts with other business software like Slack and Zapier. This application can help you comprehend how your customers’ experiences are represented. For your NPS, CES, and CSAT surveys, consider personalising them. It also enables you to, if necessary, include follow-up questions. We really enjoy AskNicely’s expanded staff coaching capabilities.