Separating your customers and dominating their feelings sounds like a sinister plan to take over the world, but no. Today we’re about customer experience management, customer experience strategy, and you don’t need villainous tendencies to do that.
Seriously though, well-structured customer experience management can increase customer satisfaction and loyalty, reduce churn, and help increase revenue for your business. Sounds great, doesn’t it?
What is customer experience?
Let’s start with the basics. A customer experience is a collection of interactions between a customer and a company. Company discovery, interaction initiation, payment, brand use, and protection are all part of this process.
Each stage of the customer experience strategy affects customer loyalty., and how actively the customer engages in interaction with the company. For example, if you delight users by exceeding their expectations (for example, delivering packages ahead of time or providing personalized content), they are more likely to share their admiration and gratitude.
What factors shape the customer experience service?
User experience and customer service are two dimensions of a customer experience. User experience refers to the interactions between visitors to your website / application and the software, whereas customer service relates to the assistance that businesses provide to consumers who have issues. Customer experience management, then, is a strategy for improving the total customer experience at all levels of interaction with an organization.
Why is customer experience management important?
Fewer words, more data. Take a look at the statistics:
- According to an Oracle study, 74% of high-level executives believe that customer experience influenced how actively customers became brand advocates;
- A study by American Express found that 60% of participants were willing to pay more for a better customer experience;
- 80% of companies surveyed by Bain & Company believe their customer experience is great, while only 8% of their customers agreed.
Customers may be won over and your brand image anchored in their minds with the correct customer experience approach.
Customer Experience Management – Whose Responsibility?
Who is responsible for the customer experience in your company? Of course, this can be a separate customer experience management team, it can be top managers, or even an accountant – anyone. But in reality, all teams should work together to make an impact on the customer experience possible.
Three metrics for customer experience management
Let’s get down to business and take a look at metrics that will show you how you are doing with customer experience management. Here are three pillars of your customer experience management analytics: Customer Loyalty Index (NPS), Customer Satisfaction Score (CSAT), and User Effort Score (CES).
Consumer Loyalty Index (NPS)
NPS is an easy and quick way to measure your customers’ loyalty. NPS polls are quick and easy to conduct: they usually consist of just one question, such as “How willing are you to suggest our firm to friends or acquaintances?” a ten-point scale, and a place for customer feedback.
Another benefit: NPS survey results are easy to collect and analyze by segment to understand which segment of customer experience you are doing well with and which segment needs more work.
User Satisfaction Index (CSAT)
CSAT is an equally simple and effective way to tell the user how satisfied they are with your work at any given stage. CSAT surveys are often used after a transaction has been completed or a support call has been made.
User Effort Assessment (CES)
Another popular metric related to customer experience is User Effort Score (CES). The form of the user effort assessment is similar to the CSAT, but it has a different purpose – to find out how easy it was for a user to take an action on your service.
As a rule, the easier it is for a user to solve their problems using your service, the better their customer experience. CES is a metric that will help you see the factors that repel users from working with you.
Customer Experience Management: An Action Plan
In order for your customer experience management work to delight with the results that sparkled your eyes at the beginning of this article, it is important to map out the right course of action. It may include the following items:
Find weaknesses in customer experience using metrics
You may think that you are doing absolutely everything right, and all your customers are happy with one mention of your brand. We are sincerely glad if this is true: but check the metrics just in case so you don’t face the harsh reality of high churn.
Include success managers in the work
Once you have identified your weaknesses, including success managers – people who are interested in the success of customers, this is likely to improve the customer experience.
Improve the product taking into account customer feedback
If a significant portion of your customers get stuck at some point, we have bad news. Something is wrong with your product and not with your customers. Metrics and customer feedback will help you set the right direction for your future product development.
Improve LTV rates, decrease churn rates
In addition to those metrics that we talked about before, there are two more very important for any business. In part, the customer experience influences them too, and the better your customer experience management strategy, the better the LTV and the less likely a customer will decide to abandon your product for reasons specific to your product.
Analytics and improvement
At the stage of measuring efficiency, the circle is not open. We have already written about metrics that is important to assess how productive your work on customer experience management is. Now take a look at the approaches that are often used to measure customer experience performance:
- Periodic survey of overall customer satisfaction – deep dive into specific customer experiences.
- Regularly polling randomly selected customers, tracking their brand perception and key metrics.
This data will be useful for improving the customer experience for individual customers. Especially it is so important in the B2B sector. This data will be useful for improving also in the Customer groups (segments that are most important to you), or for all customers in general.
That’s all. We do not distract you with long parting words, because great things await you in managing customer experience!