That means companies of all sizes are beginning to notice customer experience importance, and how their brand and offerings make people feel. However, although 80% of companies feel that they deliver “super experiences” for customers, only about 8% of customers would agree. That leaves major room for improvement.
How Do We Define Customer Experience?
As HubSpot puts it, “The best way to define customer experience is as the impression you leave with your customer, resulting in how they think of your brand, across every stage of the customer journey.”
Customers begin shaping their impression of you from the second they are exposed to your brand or product/service. That means many different touchpoints will determine the experience they have and how they would rate it. It may begin with a commercial or advertisement, or simply driving by your place of business or seeing your product on the shelf.
Customer Experience Importance
There is an endless list of reasons to convince you why customer experience is so important, but these four represent the primary advantages that will come along with focusing on customer experience at your company.
#1 It’s the best brand differentiator
It doesn’t take long for a new product to come out that the public adores.
Take, for instance, the peel-off charcoal masks that had ads going viral across social media for extreme close-ups that showed them cleaning out thousands of pores. The product began selling almost instantaneously and was reviewed by countless beauty gurus.
Of course, it didn’t take long for plenty of competitors to come along and begin selling a similar face mask. In fact, some even did it better, because they went beyond product and they worked on branding – and that’s where the lesson about customer experience comes into play.
There are two main parts of a customer’s experience: the product and the people. The original peel-off face mask had an appealing product, but there was no branding to it and that made it easy for competitors to move in and do things better.
A product and its features are easy to imitate, at least compared to customer service and branding.
When you create a consistently great customer experience, it becomes part of your branding and marketing strategy, making it a brand differentiator that is extremely hard to imitate. In other words, you should start competing on the basis of service –not just product.
#2 Customers always share great experiences
When customers get what they expect, they tend to stay silent. But, when a company goes above and beyond in delivering a great experience for them, they are quick to become brand advocates and tell everyone about it. Exceeding customers’ expectations means more word of mouth marketing, which is the most effective marketing tactic of them all.
People are quick to take the advice of their friends and loved ones. To put it simply, people trust what they hear from people they know. So much so that it is estimated to drive $6 trillion in consumer spending annually while accounting for 13% of sales.
This only further puts customer experience importance on the pedestal, right?
#3 People always have options
These days, everyone has options–even in very small niches. You have competitors who can someone solve your customer’s pain points, or at least offer a bandaid solution to them. And, while you might believe that you have the best product out there (as you should), customers can choose any company they want–and they’re going to pick the one that offers the best experience.
Customers are always going to shop around and, if they can find a product like yours, why should they pick you over a competitor?
Rather than competing on price or trying to talk up your product’s features, focus on the overall customer experience. Think about it: product quality may be at the center of that experience, but what else can you bring to the table?
#4 Good customer experience boosts revenue
There is no doubt that customer experience directly impacts your bottom line. There are three ways that good customer experience helps to improve your revenue:
By helping you get customers: When great customer experience becomes part of your brand, customers are much more likely to choose you over any competitor.
By helping you keep customers: Customers are less likely to switch if you are providing them with an experience that they feel is unmatched. Always strive to offer the best service and you’ll see increased retention along with repeat sales.
By enabling you to charge more: If you are offering a worthwhile customer experience that beats competitors, you might be able to charge more, even if the product itself is comparable. People put a high value on experience. Ask, what’s it worth to your customer?
According to Convince and Convert, “A moderate increase in customer experience generates an average revenue increase of $823 million over three years for a company with $1 billion in annual revenues.”
Put Experience First
It’s not always easy to find ways to differentiate your brand, but by understanding customer experience importance, you can get a better grip on your market’s wants and needs. Think about how your competitors are working to compete with experience, or perhaps how they’re failing to do so, and then strive to be better.
When given two choices, customers will always opt for the one that offers better experience. How will you improve that experience for them so that you can get the sale?