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How customer experience drives business growth

There are countless reasons to focus on improving the Customer Experience, but business growth is significant.

A company’s growth is dependent on a variety of factors, the majority of which are interdependent. This guide will introduce you to the most crucial reasons for improving the customer experience and how it will drive business growth.

1.    CX improves customer satisfaction.

Good customer experience and customer satisfaction go hand in hand. The better the customer experience, the higher the customer satisfaction. Therefore,  companies focused on providing seamless, outstanding, and consistent customer experience across all customer journey touchpoints are more likely to increase overall customer satisfaction. And what does it mean to have satisfied customers? It means they will buy more!

2.    CX enhances Customer Retention.

Getting new customers is hard. But keeping the customers and making them come back is even more challenging. Today, customer loyalty is almost the same as winning the gold medal in the Olympics. And losing people in your system is worse than losing the trophy. This challenge is called Customer retention. To retain a customer means that your company’s brand, product, or service is valuable enough to stay with you rather than go to the competitors. This is precisely why customer retention is a critical key performance indicator (KPI) to be tracked, observed, and improved over time. And it goes without saying that excellent Customer experience helps in retaining customers. If you want to learn more about how CX enhances customer retention, download our guide.

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3.    CX improves Customer Lifetime Value

​​Customer lifetime value (CLV) is one of the most important metrics for a company. Essentially, CLV measures the total income a company may expect from a typical customer as long as they remain on board. And how to keep them on board? By keeping them happy, valued, heard, and obtained. Or by providing an outstanding Customer Experience. Improved CLV also means improving customer retention and avoiding customer attrition (churn). It drives repeat sales and encourages high-value sales, increasing profitability and growth.

4.    CX reduces customer churn.

Customers churn a lot. At some point in time, they stop using certain products or services. And there can be many reasons for this, like price, product quality, and most recently, poor support and customer service. As a matter of fact, over 80% of customers are likely to churn if not handled properly or not given enough care and good CX. Therefore, the lower the churn, the higher the revenue and growth.

5.    CX improves CSAT score.

Like many of the KPIs mentioned earlier, the CSAT is one of the most important. Short for Customer Satisfaction Score, CSAT determines if a customer believes a company’s products or services have met their expectations. In fact, the company’s CSAT score shows how many of the customers are happy with the company. And how do you improve that percentage? By making more of your customers happy and satisfied. You can do this easily by improving the Customer Experience, care, and support.

6.    CX boosts sale

These dots are connected and create one cycle of good standing business. So ultimately, given a  proper, or better yet, a superior customer experience and care will result in more significant sales and higher revenue. The cycle is quite simple, really. You get your customers into your funnel, nourishing them so they stay there. Happy customers will always ask for more and, even better -will bring more customers.

7.    CX increases brand loyalty.

We would argue that brand loyalty is among the most important (and probably hardest to achieve) aspects of your business. Why? Well, because it’s everything! The entire image your customers have about your business. The reason they have chosen you in the first place and why they’ve stayed with you. The positive association they have towards your brand or company. Loyal customers are the ones who keep purchasing. Loyal customers are repeat customers even when the competition offers something cheaper or even better. So once again, gain loyalty by having an amazing CX. Personal communication, dedicated onboarding, assistance during purchase, post-purchase care, and attention. All those details will make your customers feel like part of your family. A family where they belong and should stay for a long time.

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8.    CX creates strong brand advocacy.

And once you have all those happy, loyal returning customers – you have your brand advocates! Satisfied customers stand behind their brand of choice, refer it to others and recommend it constantly. And surprisingly, most of the customers recommend a brand based on their Customer Experience. So, by having an exceptional CX, you’ll quickly get your promoters that will bring you the growth you want and need.

9.    CX creates a competitive advantage.

You can have an advantage in many business areas and stand out from your competitors. Providing a superior customer experience is one of the most critical competitive advantages. To care about your customers more than the competitors do is something every company is now fighting for.

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The big conclusion

Business growth comes from various areas of what and how you do your business. But somehow, Customer Experience is always at the core of it. Outstanding Customer experience will help you get your customers, introduce them to your brand, hook them and keep them in your eco-system. Satisfied customers will become your advocates, make you stand taller than the competition, and help your business grow. So it’s not really a question if Customer Experience is supporting business growth. It’s not even a question of how it does. The biggest question is when you’ll start improving your  Customer Experience and, more importantly, how?