7 Benefits of Successful Customer Experience Management

Having a solid understanding of customer experience will help you create an effective strategy to make your business stronger. It can help to decide what aspects must change to improve your company.

If you run a business and aren’t completely sure what is meant by customer experience, this is the moment to get intimate with the term. Like, best friends for life intimate.  The better you understand it, the easier it will become to create efficient strategies to manage it.

No time to waste, then! Let’s take a look at what customer experience is and the different ways it impacts your business.

What is Customer Experience?

First of all, if you’re going to become familiar with customer experience, you should be able to identify it by its nickname: CX. Not to be confused with the term UX. While both are based on your customers’ interactions with your brand, they’re not the same. UX, or User Experience, focuses on the digital interactions of consumers with your brand. On the other hand, CX is based on all interactions between a consumer and your brand.

Traditionally, every interaction a brand has with customers was defined as “user experience.” More recently, it has changed to mean any digital interaction with a brand. You can take a look at our previous article, where we go more in-depth into everything UX-related.  

Examples of UX: using your app’s interface, reading blog posts on your website, clicking through from one of your marketing emails, reading your brand’s social media posts.- Lionel Valdellon

Another term exists that sometimes gets mistaken for CX. We’re talking about customer service. However, customer service is just one part of the whole customer experience. As we mentioned, customer experience is a customer’s overall perception of your company. In comparison, customer service refers to specific touchpoints when a customer requests and receives assistance. For example, customers calling in for a refund or emailing a service provider.

How, then, can we define CX? Customer Experience is every emotional reaction consumers have when encountering your brand, website, or any content or products. It’s not limited to just one area of your business or based only on your consumers' digital interactions.

CX refers to the customers’ emotions and perceptions when they:

- Discover a brand

- Research, test, or purchase a product/service

- Interact with customer service representatives

Intelligent CX treats the customer as a single person from one interaction to the next. It connects data, systems, and teams to create a consistent customer experience across every brand touchpoint.

The Impact of Customer Experience Management on Your Business

Counting with a great customer experience strategy is crucial for any business. Positive experiences mean less friction with customers and increased customer loyalty.

Managing customer experience isn't just about how people perceive their experience with a brand or the actions a company takes, but rather how customers feel when engaging with a brand. - Griffin LaFleur

There are many benefits of delivering a great CXM strategy (Customer Experience Management). We will focus on 7 benefits that Griffin LaFleur from TechTarget mentions.

1. Higher customer lifetime value

This represents the total amount of money a customer will spend with a business on products or services over a lifetime. When you know this number, you can identify how much you have to spend to retain customers instead of getting new ones.

Repeat business equals strong customer loyalty to a brand. The more the customer spends with a business, the higher the profits.

Additionally, the odds of making a sale on an existing customer often exceed 60%-70%, whereas companies are only 5%-20% likely to sell to a new customer. - Griffin LaFleur

2. Increased brand equity

Brand equity has to do with the emotions a consumer has when thinking about a brand. A company with positive brand equity has loyal fans. These types of customers eagerly post positive reviews and give word-of-mouth referrals. An effective customer experience management plan can also prevent negative reviews.

3. Higher customer retention

High customer retention is connected to high customer loyalty. Customer retention leads to more sales and higher lifetime value. Also, it’s an easier way to increase ROI from that initial conversion.

Companies that are quick to resolve issues, reward loyalty, and thank their customers will strengthen their positive perception.

4. Better customer engagement

For a customer experience strategy to be successful, an omni-channel approach to customer engagement is necessary. This means that companies should check in frequently with customers to understand their needs and reward their loyalty. As a result, there will be return interactions from the customers.

5. Improved crisis management

Businesses can prepare for potential crises by applying effective customer experience management strategies. Avoiding negative perceptions from your customers is always desirable. When customers have trust in a brand, they are more likely to interact with them.

Companies that own up to their mistakes and enforce their customers’ trust can make a difficult situation more positive.

6. Reduced costs of service and marketing

Effective customer experience management requires a customer-centric approach to marketing. It focuses on understanding the needs and wants of the consumer and eliminates the guesswork. Specialized teams can then take this information to be more proactive towards their customers’ needs.

7. Reduced customer churn

Companies with a strong consumer experience strategy benefit from reduced churn or customer turnover. It’s more expensive to get new customers instead of keeping them. Businesses that invest time and resources in their customers’ satisfaction are rewarded with longer engagement.

Improving Customer Experience

In conclusion, everything you do impacts your customers’ perception and their decision to keep coming back or not. Your goal as a business owner should be to manage your customer experience strategy and continually improve it. Achieving this is key to your company’s success.

“So, the next time you think of customer loyalty, think about the level of loyalty that the Chicago Cubs, or any other sports franchise, create with their fans. Can your organization do the same?” - Shep Hyken

Let’s talk.

Reach out to us on Facebook or LinkedIn and let us know how your brand has benefitted from CXM. Or follow us on Instagram for a bite-size version of our blog.

   

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