It is all about customers and their experience. The reason is that there is simply too much competition for you to tell customers to take it or leave it. They will leave it and you and never come back again. Give them a great customer experience (CX) and they will not only return but are also likely to say something good on social media and reviews.
CX is not just about delivering an exceptional experience to new leads; it is also about endearing existing customers to retain them. Forrester’s research shows that one-point improvement in the CX Index score translates to an appreciable revenue increase from existing customers.
Understanding customer experience index
It is all well to talk about great customer experience but how do you measure it. There are metrics and KPI (key performance indicators) commonly used across the world. Numbers are easily understood.
If you go into details there are statistics classified under various key performance indicators such as customer satisfaction, net promoter score, churn rate, retention rate, customer effort score, and customer lifetime value.
About 64.5% of businesses use the NPS score followed by 43.6% who use the customer satisfaction index. 42.75% of businesses make use of churn rate scores and 35% use retention rates to understand customer experience and find out ways to improve it.
The net promoter score sort of simplifies the measurement of customer satisfaction. It is usually on a scale from 1 to 10 that customers are asked to rate their experience once they buy or avail of service. If they assign, for example, 9 out of 10 then they are likely to promote you and your product. If they give you a score below 6 then it shows they are unhappy and will likely leave negative comments elsewhere too.
The customer satisfaction metric lets customers assign a star rating from 1 to 5 stars. 5 stars are excellent. 1 star is bad. Each metric gives you precise information that you can use to improve the customer experience. So, the question is, how do you deliver great customer experience and increase sales?
The lead level
Great CX begins at the leadership level when the customer starts the journey. Most salespeople would assume that the lead may or may not convert. They are likely to be perfunctory with a solid lead and not be meticulous enough to answer all questions. They could choose to be persistently pesty and keep bombarding the lead with phone calls and emails.
Both lead to a negative experience. It is worth putting yourself in the shoes of the prospective buyer and then tries to imagine what they expect. Try to match expectations and you have delivered a great pre-customer experience. You have got yourself a buyer.
Nurturing existing customers
Different types of products could give rise to different customer relationship policies. For instance, you have cars and other consumer durables where a customer is probably a one-off buyer and will not return for years. Isn’t it pointless to pamper such customers? You would be wrong.
Retain a customer, even when your product is not in the category where it is needed regularly. Just a 5% increase in customer retention leads to a 25% increase in profit. Happy customers may not buy consumer durables again but they put in a good word and influence other buyers. You could rope in a loyalty expert to craft strategies.
Feedbacks at every stage
One simple way to deliver a great experience at any stage is to interact and request the customer or customer-to-be to rate that experience and possibly invite suggestions for improvement. People fall for it and are proud to help. It makes them happy and it counts.
More pertinently, you capture data you can use to measure KPIs. Measuring KPIs is good but it should lead to efforts to improve the quality of product and quality of service to see progressive increments in customer delight.
The business owner is not in a position to interact with each possible lead or customer at any stage. Employees do it. Now, if you have empowered motivated employees, you can expect them to put in all efforts to be nice to prospective and existing customers.
To find out the difference you could go to a public sector bank and any of the private sector banks like HDFC or ICICI. There is a world of difference in how the employees interact with you. Empowered and enthusiastic employees who receive rewards for achieving results are likely to be more pro-customer and deliver memorable experiences. You can see results in conversions and loyalty.
It is an axiom in business to try to get the most for the least. If you subscribe to this school of thought then social media can be your road to deliver customer experiences. You can derive metrics too. Social media is where you can open up and put in efforts to build relationships. It starts long before a person becomes a customer; in fact, the happy experience you give is probably what prompts a person to become a customer.
Once you deliver an exemplary experience at this stage you have a potential super promoter who will infect others with enthusiasm and convert them into buyers. And so it goes on. You see, it pays to be nice. Your revenues show a logarithmic growth.
Give a customer a nice experience because it will lead to a 42% retention, 33% satisfaction, and a 32% increase in cross/up-selling. That 86% of customers are ready to pay more for a better experience says it all. If that were not so why would people visit posh restaurants or travel on cruise ships or fly first class? Conversely, 78% are turned off by the negative experience, and 91% such customers will never approach you again. Worse, they may spread a negative impression about you. That does even more damage.
Giving customers a delightful experience does not cost much. You could call in loyalty experts or retain experts in digital marketing. It is worth the effort. Your revenues simply multiply.
About The Author
Rakshit is a content marketer at PeddleWeb, an internet advertising company in India. He holds spectacular skills in digital marketing, branding, lead generation, customer retention and few more.