- 86% of consumers are willing to pay more for a better CX.
- 70% of buying decisions are based on how customer feel they are being treated.
- Companies that excel in Customer Experience strategies will grow revenues 4-8% above the market average.
- 7 in 10 Australians will spend more with companies they believe to provide a great CX.
- The promise of better Customer Service is a draw for consumers. 59% of surveyed consumers said they would try a new brand for a better service experience.
Source: Bova, Tiffani GROWTH IQ, MACMILLAN
Customers remember the experience they have with a brand longer than they remember the price they paid.
Customer Service vs. Customer experience
Every business I work with prides themselves on having, “Great Customer Service”. Unfortunately, In the current business landscape, having great customer service is an expectation of consumers and evaluating your business on this metric alone doesn’t cut it anymore.
Customer service is defined as, “the assistance & advice provided by a company to those who buy or use its products or services.”
Customer service is reactive, or when requested. For example, answering a client within the same day when they have a question is an example of good customer service.
On the other hand, customer experience can be defined as, “the sum of all of a brands touch points, both on line and off line, through human representatives and now technology.”
Customer experience on the other hand looks proactively at your customer’s complete journey with your company and crafts an experience that is pleasurable all the way through, from the experience they have on your website all the way through to how they pay for your service.
Who does it Best:
For some fantastic case studies on how well known brands have crafted great customer experience strategies check out these well known brands:
“In today’s retail environment, where very little is constant and clients’ expectations are ever evolving, one thing has remained true for SEPHORA: There is no better way to create meaningful connections with clients than through personalised experiences and a customised approach to beauty.” CALVIN MCDONALD – CEO
- Shack Shack
“You may think, as I once did, that I’m primarily in the business of serving good food. Actually. the food is secondary to something that metters way more. In the end, what is most meaningful is creating positive, uplifting outcomes for human experinces and human relationships. Business, like life, is about how you make people feel. Its that simple and that hard.” DANNY MYER – CEO
- KX Pilates and The Fit Space (For something closer to home)
“KX may operate in the Health & Fitness Industry, but we’re definitely in the business of making people feel good, rather than look good. Our value is not primarily within our workout. Our value is in how best we service peoples needs, knowing that not all peoples needs are the same. Our focus is on educating our team, community engagement, culture and value added activities off the Pilates Reformer and outside the four walls of the KX Pilates studio. That’s how we create long lasting, valuable experience for our clients.” JAMES TRENERRY – OWNER KX NORWOOD, UNLEY, MAGILL & THE FIT SPACE
Why is Customer Experience important?
Lets take a look at how the rise of Uber has disrupted the Taxi industry. A taxi, 95% of the time will pick you up on time, drop you off in the right place and may well throw in some small talk along the way.
Uber has taken this service and streamlined the process with a seamless mobile app. A car is ordered at the touch of a button rather than a call to a call centre, cars are tracked in real time so you know when it will arrive, finally payment is automated rather than the awkward 2 minutes it takes for the EFTPOS machine to work. Uber looked at every part of the customer journey and optimised it.
5 Steps for Crafting Great Customer Experience Strategies:
Know your market – If you want to develop a great customer experience, you need to know what makes them tick, what they value, what their pain points are and what their typical customer journey looks like.
Identify the ultimate customer experience – Based on your understanding of your target market and based on their pain points, it’s time to think about what the ultimate customer experience will look like. What feelings do you want your customer to have as they progress through each touch point with your business? How do you create the “Uber” experience for your customers?
Map out all touch points & interactions – Next, it’s important to document every single kind of interaction your clients will have with you. Everything from the way your customers can contact you on your website, to how they receive and accept engagement letters, to how they pay for your services. Every single interaction should be mapped out and then fit into your perfect customer experience described above.
Build your team around the customer experience – In my case, my firm is built around the notion of providing customers with an easy, pain-free experience. In order to deliver that, you need people that are not only customer facing and customer service oriented, but also ones that understand the pain that most business owners have in their finance function. If they can understand that, then everyone is aligned.
Implement the right technology – Finally, you’ll need the right technology in place in order for you to have a fantastic customer experience. Once you know all of your customer’s touchpoints, it’s time to see if there’s any technology out there that can facilitate those interactions to make them easier, smoother and slicker.
How do you keep track of your progress: KPI dashboards
Growth IQ monitors KPI’s that directly reflect how your business is performing when it comes to Customer Experience. What gets measured gets managed and if you think you’re having difficulty with providing a great customer experience contact us for a conversation. Growth %, Churn Rate and Average Lifetime Value are all really insightful metrics to measure and manage.