Why a Good Customer Experience Is Important for Your Business
With the increasing popularity of e-commerce, customer service and customer experience are essential tools for your business to stay relevant and competitive. Customer experience includes your customers’ perceptions about your products and services. People are more inclined towards online shopping now more than ever as the pandemic forced most businesses to move to e-commerce and brought a drastic change in consumption trends. Therefore, the need for a good customer experience intensified as in-person interaction diminished. The lack of in-person interaction among buyers and sellers on e-commerce had to be compensated with improved customer care in order for business to gain the customer’s confidence and build a long-term loyal customer base.
About 68% of marketers have reported that their primary focus is investing their time and effort into enhancing the customer experience. Here is a list of three reasons why focusing on better customer experience is extremely important for your business and its growth:
1. Customer Experience Leads to Customer Satisfaction
Improving your customer experience will enable your business to meet and even exceed your customers’ expectations, leading to high customer satisfaction rates. Your company has to provide accurate information to customers, prove that it is dependable, and provide customers with post-purchase services to build a good brand image and credibility.
A delighted customer is likely to generate fourteen times higher revenue for you than a dissatisfied customer. Therefore focusing on your consistency in providing quality customer experience across all touchpoints should be your primary goal.
2. It Leads to Higher Customer Retention
It is reported that acquiring a new customer for your business will cost seven times more than maintaining one of your existing customers. Not only does improving the customer experience let you build a loyal customer base, it further impresses new purchasers and incentivizes them to continue engaging with your business.
Research shows that if a business manages to get an increase in customer retention by 5%, it can help them increase their overall profitability by upto 25%. A superior customer experience is an asset for a business and can pay off greatly in the long run by improving your customer retention rates. If you are a start-up venturing into a competitive market, customer retention should be your ultimate goal to survive and thrive in the industry.
3. Gains You Competitive Advantage
About 88% of consumers are reported to read reviews in order to assess the quality of a business’s customer experience and choose to purchase. If your business succeeds in building loyal relations with the existing customers and getting their positive feedback online, prospects will be more likely to invest in your product and service. A customer-centric approach with two way communication will enable you to understand change in customer preferences better and respond quickly to changing demands. This in return will gain you competitive advantage and help your business stand out in high competition and saturated markets.
4. It’s Free Marketing
The customer experience that your business offers lets customers trust your product or service and your brand. This increases the word of mouth marketing for your business and builds credibility of your brand among consumers. Customer service that exceeds the expectations of customers is more likely to be talked about by the customers and this will help your business gain more publicity and brand-awareness free of cost. The news of great customer experience provided by your business can reach people who can be your potential customers and this will encourage them to visit your office, shop or website.
Good customer service is way cheaper than most other marketing methods like facebook and instagram ads, and word of mouth marketing is usually considered more credible by consumers. If you focus on your customer service, your business will be well marketed at all times.
Improving your consumer experience is the first and most crucial step in betterment of your businesses performance and accelerating growth. You can do this through creating personalized content for each customer and promoting the product through customized email or advertisements to tailor the experience per their needs. Such personalization can let consumers feel valued, letting you create a customer base for a start-up and ensuring that your business survives and grows well. In addition, your business can invest in customer service solutions, automate customer service processes and benefit the overall customer experience. The benefits of customer service solutions and how they improve businesses are immense, and they will enhance your customer’s experience to a great extent.