Here we list nine ways CX impacts business and drives growth.
Great CX improves customer satisfaction and loyalty, leading to higher sales, increased revenue, and improved brand reputation. A growing body of evidence shows that companies can increase their revenue 5-10% by improving their customer experience strategy. Still not convinced how a great CX can impact your bottom line? Here are nine more reasons:
9 ways Customer Experience impact business
1. CX improves relationships with your customers
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 customers and persuading them to come back is even more challenging. This challenge is called customer retention.
Retaining a customer means that your company’s brand, product, or service is more valuable than your competitors’. This is precisely why customer retention is a critical key performance indicator (KPI) to be tracked, observed, and improved over time.An excellent Customer Experience shows your buyers how valuable they are, which helps retain them and drives business growth. If you want to learn more about how CX enhances customer retention, download our guide.
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 do you keep them on board? By keeping them happy, valued, and heard by providing an outstanding Customer Experience. Improved CLV also means improving customer retention and avoiding customer attrition (churn). It drives repeat buys and encourages high-value sales, increasing profitability and growth.
4. CX reduces customer churn
Customer churn is inevitable. At some point, your buyers will stop using certain products or services. And there can be many reasons for this, like fierce competition, price, product quality, and most pertinent to this post, poor support and customer service.
More than 80% of customers are likely to churn if not given a good CX. While you may be unable to control what your competitors are doing, you have complete control over how your customers are treated. Lowering churn is the same as increasing revenue.
5. CX improves CSAT scores
CSAT is one of the most important KPIs for you to watch. Short for Customer Satisfaction Score, CSAT determines if a customer believes a company’s products or services have met their expectations.
And how do you improve that percentage? By making more of your customers happy and satisfied. You can do this by improving the Customer Experience through care and support of customer needs.
6. CX boosts sales
Great CX and improved sales are linked. Delighting your customers during their journey results in higher sales and more revenue.
The cycle is quite simple. Customers that feel heard, understood, and valued will be happy. Happy customers will always ask for more and, even better, will spread the word to new customers.
7. CX increases brand loyalty
We would argue that brand loyalty is among the most important (and hardest to achieve) aspects of your business. Why? It reflects the image your customers have of your business. It’s the reason they have chosen you in the first place and why they’ve stayed with you.
Loyal customers are the ones who keep purchasing. Loyal customers are repeat customers, even when the competition offers something cheaper or better.
Loyalty is gained through amazing CX. Personal communication, dedicated onboarding, assistance during purchase, post-purchase care, and attention make your customers feel like they belong.
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8. CX creates strong brand advocacy
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 not surprisingly, most of the customers recommend a brand based on their Customer Experience.
Word of mouth is one of the most trustworthy kinds of advertising. To be precise, 92% trust the word-of-mouth recommendations. So, by having an exceptional CX, you’ll quickly gain the 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 CX is one of the most critical competitive advantages. Customers care that you care. To show you value your customers more than the competitors do is something every company is now fighting for.
The big conclusion
Business growth comes from various areas. But Customer Experience is always at the core of it.
Outstanding Customer Experience will help you attract customers, introduce them to your brand, hook them, and keep them in your ecosystem.
Satisfied customers will become your advocates, make you stand taller than the competition, and help your business grow. So it’s not a question of whether Customer Experience supports business growth.
The biggest question is: When will you start improving your Customer Experience and, more importantly, how?
How FrontLogix can help:
Front Logix offers personalized solutions to build stronger customer relationships, increase sales, and improve retention rates. Here you can read more about the services we offer.