What is the Value of Good Customer Experience?

A positive customer experience can improve revenue and loyalty while mitigating the cost of negative experiences. 

At its core, customer experience (CX) is about human connection. Connecting an audience member to the value a brand can provide is what CX should do. More than just providing good customer service, customer experience is the totality of all experiences a customer has with your organization. It is every touchpoint and interaction, whether in-person, over the phone, or online, across all channels.

Here is the value of creating positive customer experience:

CX Translates Directly Into Revenue

As PWC reports:

  • 73% point to experience as an important factor in their purchasing decisions
  • 43% would pay more for greater convenience
  • 42% would pay more for a friendly, welcoming experience
  • 65% of U.S. customers find a positive experience with a brand to be more influential than great advertising
  • 49% made impulse purchases after receiving a more personalized experience

CX Reduces The Cost of Negative Experiences

In today's market, providing a positive customer experience is much more efficient and far less expensive than fixing a negative experience. A displeased customer can cost you in product returns/replacement, customer service resources to troubleshoot a problem, and customer churn. Even worse might be providing a bad experience to a customer who's bad review creates a PR issue for your company. Segment Survey reports have shown 71% of customers express some level of frustration when their experience is impersonal.

CX Drives Customer Loyalty

CX is about providing value and a simple journey for your customers, which is vital to your customer retention because of how easy switching to a competitor can be now. Additionally, your audience expects a good experience because the availability of customer data has made personalization common. In fact, as part of the same Segment Survey, 44% of respondents said they have become repeat buyers after personalized experiences.

Forrester's Embrace A New Marketing Era: End Dissonance And Drive Growth quoted 85% of marketers saying improving personalization capabilities is a priority. To achieve these results, you'll have to dive deep into customer data to identify what matters to your audience, and what their needs and pain points are. With that understanding, you can develop a strategy that focuses your organization on the customer to deliver the value they need.

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