What is the next-generation customer experience, and how to get there?
Just keeping up with customer expectations is no longer enough. Companies today need to exceed expectations and provide exceptional CX to keep their customers happy, loyal, and coming back. Today is about company loyalty, not customer loyalty. Implementing Next-Gen CX solutions will drive value, reduce costs, and increase revenue.
The high-expectations era
We’ve reached a time where people are no longer buying products; they’re buying experiences. And they expect those experiences to be seamless. Expectations are rising primarily due to customer technology development. Today, the new generation of customers want and expect instant solutions, 24/7 availability, omnichannel support (access to both desktop and mobile), online and offline support, flexibility, and efficiency. They quickly adapt to new channels and devices and expect the companies they buy from to do the same. They want multiple touchpoints in their customer journey, making their interaction smooth, effortless, and more accessible. And most of all, they value omnichannel presence, speed, trustworthiness, and responsiveness. Today, it doesn’t matter what you sell. First and foremost, you’re selling an experience!
High-quality over high-quantity
It is common practice in the customer service department to measure success using several KPIs (key performance indicators) such as: call handling time, the number of calls handled, first response time, first contact resolution, and level of customer satisfaction. However, today these KPIs are only a tiny part of the customer service department’s overall success. Previously, agents would send a customer to another department for issue resolution and close the ticket with the shortest handle time, whether the issue was resolved or not. Customers now regard this as an unsatisfactory “bouncing-ball” experience. As a result, today’s customers prefer a longer initial call where they receive high-quality service rather than being transferred between departments. And this is also a part of Next-Gen CX.
Human & machine superintelligence
Without a doubt, the next generation means cutting-edge technology. We can say the same for customer service departments. Companies must leverage well-trained and well-intentioned employees alongside the latest technologies, software superintelligence, and AI to provide a Next Generation Customer Experience. It should ideally be a hybrid of the best of both worlds – human and machine.
The customer-centric strategy
In both life and business, not all experiences are positive and bad experiences are unavoidable. But imagine you’re a customer who had a bad experience with a company. You’ll most likely be frustrated and leave the company without explaining what went wrong. Customers today take immediate actions that harm businesses after a single negative experience (without considering all the previous good ones).
This only emphasizes the importance of companies focusing on becoming customer-centric. Essentially, this means putting customers at the center of the business and organizing around them. Teams, processes, and technologies should be focused on creating a next-generation customer-centric company. That is the only way to provide your customers with the Next-Gen Customer Experience they require.
We’ve already discussed the importance of good customer experience and how to measure it for the best results. This guide will teach you the essential elements of customer experience that businesses must include in their CX strategy.
Reliability is a critical factor that significantly impacts the customer’s experience. The perception of reliability helps to build your company’s brand image and generate positive word of mouth. So, what exactly qualifies?
Providing support for both critical and non-critical business issues;
System and network reliability and providing appropriate resolutions in the shortest time possible;
Reliably integrating different channels to communicate with the customer
Consistently delivering an outstanding customer experience.
In today’s fast-paced world, customers expect to be able to contact a company whenever and however they want. They interact with companies on their terms via email, chat, voice calls, messaging, or social media. But, they also expect to have all inquiries answered quickly (if not immediately). They especially do not want to spend (or waste) their time waiting for answers or repeating their questions. And that’s precisely why availability is among the essential elements of a good customer experience.
Customers, in addition to availability, expect convenience. They do not want to waste their precious time waiting in phone queues or repeating their questions to different representatives. The ability to reduce customers’ non-monetary costs, such as time, energy, and effort when purchasing/using services or products, significantly impacts CX.
4. Personalised Communication
Receiving personalized messages from a company, whether related to previous interaction with the company, offers linked to purchase history, or simply an interactive voice response (IVR) message personalized with a first name, provides the customer with a feeling of being valued. As a result, personalized communication is one of the most important aspects of a customer’s experience and expectations.
Customers expect all business interactions to be simple and seamless at every step of the customer journey. They anticipate being heard while also having their interactions simplified. This means a company should keep the number of jumps from one touchpoint or stage to another at a minimum. Providing and implementing a one-step resolution or access to information through all available channels would be the ideal approach. But even that is insufficient. Besides simplifying the process, businesses must ensure that as much data as possible is collected and stored at each step so that customers do not have to share the same information repeatedly. All of this will make customers’ lives easier at each stage of their customer journey, enhancing their experience significantly.
Accountability is yet another vital factor in providing a positive customer experience. Customers always assess whether a company has delivered on its promises. This evaluation occurs at every stage, often before they make a purchase. Once the customer makes a purchase, the review does not end. Whether the solution or product is delivered on time and whether the provided experience, solution, or resolution is straightforward and honest is essential. Of course, doing business can sometimes be unpredictable, and situations may arise where the promised resolution is challenging to deliver. Customers must be informed of why and adequately compensated if such scenarios occur.
Because the digital world is rapidly changing, customers (particularly younger generations) are likelier to experiment with newer technologies and commit to newer engagement channels. This simply means that companies must consider the changing consumer environment and be ready to adapt and change quickly and smoothly. Adaptability in a technological environment is critical for a company to provide exceptional customer services in speed, data security, data accuracy, and so on. Because each customer is unique, a company’s solutions should be adaptable, scalable, and tailored to the customer’s specific needs.
Anticipation is also closely related to the rapidly changing technological environment. To be able to adapt quickly and smoothly, companies must be able to anticipate changes before they occur to stay ahead of both their customers and the competition. To provide an exceptional customer experience, every company must be a digital innovator in their respective fields and industries.
Allowing customers to provide feedback is another essential aspect of providing a good customer experience. Customer feedback can be advantageous to both parties:
Customers will appreciate it because it demonstrates that the company cares about what they think
It shows the company which aspects of their business are most valuable to customers and which could benefit from improvement
Responding to customer complaints or inquiries consistently and promptly is crucial to providing excellent customer experience. A responsive CX team can contribute to success by assisting as many customers as possible and finding solutions quickly.
When customers provide positive feedback, responsiveness is also critical. Customers will be satisfied with their experience if their suggestions prompt change.
Excellent internal and external communication is another critical component of the customer experience. All customer experience interactions revolve around communication. Knowing how to communicate, regardless of the situation, can assist the CX team in being ready for any type of interaction.
Being an effective listener is an integral part of communication. Employees and managers must try to hear what customers say, respond with relevant information, and contribute to a satisfactory solution.
Customers appreciate it when brands and companies they purchase from are transparent, open, and honest. Transparency is demonstrated through honesty. Even in cases when employees do not have all the necessary information or all the required answers, customers will appreciate a transparent and honest response rather than a generic one.
Another crucial aspect of transparency is the service/product descriptions and prices. Customers appreciate it when they can find sufficient and accurate information.
13. Exceeding expectations
Exceeding expectations simply means going above and beyond for your customers! This is another essential aspect of the customer experience because it increases customer satisfaction and contributes to credibility. Going the extra mile will undoubtedly result in long-term, positive customer relationships. It will also encourage customers to return, renew, or re-subscribe. Return customers are more likely to recommend the brand to their peers, which leads to acquiring new customers. As a result, a company must not pass up any opportunity to go above and beyond to engage and delight existing customers.
14. Balancing CX and Profitability
Creating a great customer experience is much easier if you’re willing to spend a lot of money and effort. Many companies cannot afford this in the long run. That is why balance is so important. The best customer experiences provide customers with recognizable and prominent value at a low cost to the organization. This is precisely why companies choose to outsource their customer experience.
We’ve identified 14 key triggers that we believe are crucial to delivering a superior customer experience. Building a successful customer experience strategy requires balancing these factors. Most are codependent and need to be implemented as a whole to provide better results.
A company should carefully consider all the above aspects to provide an exceptional customer experience. Furthermore, businesses should evaluate all touchpoints in the customer journey, carefully design content for each channel, and personalize it for each customer.
Finally, to provide a truly memorable experience, the team in charge of the customer experience must be well-trained, enthusiastic, and compassionate. FrontLogix has highly trained, experienced, and skilled employees that are reliable, accountable, available, responsive, and provide exceptional, transparent, straightforward, and highly personalized communication.
While customer experience, service, and care might be seen as interchangeable, there is a distinct difference in the way they are implemented. One thing is certain, companies are investing more resources in creating a seamless experience, resulting in a significant shift in business from profit-centric to customer-centric. The competition is also shifting away from price and toward experience. There is no doubt that companies are beginning to prioritize Customer Experience. What about Customer Service and Customer Care?
The difference between Customer Experience, Customer Service, and Customer care
There is a considerable difference between Customer Experience, Customer Service, and Customer Care. It’s essential to define these terms, be aware of the areas they cover, and distinguish between the means of interaction they use.
The primary responsibility of Customer Service is to advise customers and provide them with help and assistance. The main focus of Customer Service is customer satisfaction, with the ultimate goal of increasing the Customer Satisfaction Score (CSAT). So, what exactly does Customer Service include?
Responding to product/service inquiries
Assisting customers in making the best purchasing decision
After-purchase assistance for customers
Advising the customer on the best way to use the product/service
Troubleshooting a problem
Providing a superior purchasing experience for customers
Customer Care is exactly what it sounds like: caring for customers while interacting with the brand. Genuine care entails listening to customers’ needs and desires and developing appropriate solutions. Customer Care, while similar to Customer Service, entails deeper interactions and the development of personal and emotional connections with customers. While both contribute to customer satisfaction, another significant difference is that Customer Care cannot be easily quantified. Each company’s Customer Service strategy will be unique (even within the same industry). Common examples include:
Targeted and unique messaging (like sending suggestions based on their behavior)
Customer convenience benefits (like a money-back guarantee or free delivery)
Customer Experience encompasses the entire customer journey, including all brand interactions along the way. CX refers to the entire customer lifecycle and every touchpoint a customer has with a product or service. It also considers how customers feel about a company, including their emotional, physical, and psychological attachments to the brand. The purchasing process can be lengthy, from discovering the brand to researching a product or service, making a purchase decision, purchasing, using, and following up with the brand. All of this contributes to the overall Customer Experience.
We wouldn’t be surprised if the three concepts of Customer Service, Customer Care, and Customer Experience sound familiar. They help a company keep its commitments while creating loyal, satisfied, and returning customers. While Customer Experience is the sum of all interactions, Customer Service and Customer Care are also critical components of the equation.
Customer Service and Care are equally essential, and businesses can not overlook them in favor of a better Customer Experience. Customer Service and Customer Care are necessary because no matter how hard a brand works to provide a flawless experience, not every customer will be delighted at all times. This is precisely why all three segments should be equally incorporated and always collaborate closely. Only then will a company be able to maintain a large, satisfied, loyal customer base. And, as we’ve previously stated, loyal customers are return customers and will refer and recommend others.
So, while Customer Experience should be at the heart of everything a business does, incorporating Customer Service and Customer Care will result in exceeding expectations and keeping customers delighted. However, if you are having difficulty with any of these services, FrontLogix can undoubtedly assist you. We provide Customer Service and Customer Care outsourcing services and improve all touchpoints of the Customer Journey for a better overall Customer Experience.
In the “How to measure customer experience” series, we have tried to help you understand the importance of measuring CX and the most important key performance indicators (KPIs). We have previously covered the most widely used customer satisfaction and loyalty KPIs, and in this guide, we’ll look at the KPIs for tracking customer lifetime value, churn, and retention.
The longer a customer stays with a company, the more valuable that customer becomes. Long-term customers mean more repeat purchases, which means more revenue. This guide will teach you how to measure and calculate the most important performance indicators for retaining customers, their value to the company, and the consequences of losing them. Customer Lifetime Value (CLV), Customer Retention Rate (CRR), and Customer Churn Rate are the three most important customer value metrics.
Customer Lifetime Value (CLV)
As the name suggests, the CLV is a metric that measures the total customer value in terms of company revenue. The metric compares the customer’s revenue value to the company’s predicted customer lifespan. So basically, the more customers buy from a company, the greater their lifetime value.
The importance and why use CLV?
Increasing CLV has the potential to increase revenue over time.
It helps identify issues to increase customer loyalty and retention
Enables targeting ideal customers
Increasing CLV can assist in lowering customer acquisition costs.
How to calculate CLV?
Calculate Average Purchase Frequency Rate (APFR)
Calculate Average Purchase Value (APV)
Calculate the Customer Value (CV)
Calculate the Average Customer Lifespan (ACL)
And finally, calculate the Customer Lifetime Value (CLV)
To calculate all of the above, use these formulas:
And finally, calculating the customer lifetime value:
Customer retention rate
Customer retention refers to the process of keeping customers. While obtaining new customers has always been a top priority in business, companies should prioritize retaining existing customers. The retention rate indicates how many customers stick with a company over time.
Why use CRR?
Retaining customers is really important;
Existing customers are five times more likely to purchase and four times more likely to refer than new visitors;
A 5% increase in customer retention can boost a company’s revenue by 25-95 percent;
Repeat customers or customers with the potential to repurchase frequently are critical to a company’s success (especially in a subscription-based business);
It can improve customer experience by tracking specific points in your product’s/services’ life cycle or specific user groups;
Provides insights about how much users value your product over time.
It offers suggestions and opportunities for improvement.
How and calculate CRR?
To calculate the Customer Retention Rate, add the total number of customers at the end of the month, subtract the number of new customers added during the month, and divide by the total number of customers at the start.
Other ways to calculate CRR
There are a few more methods for calculating the retention rate.
Subtract the number of customers who churn over time from those who remain loyal.
90% retention – 10% churn = 80% retention rate
Consider how many customers remain loyal for one period of time versus another.
% of loyal customers in period one / % of loyal customers in period two = retention rate
Customer churn rate (CCR)
Customer churn is the opposite of customer retention. The churn rate will show how many customers stop paying for your services.
Why use CCR?
Low churn is essential because getting new customers (customer acquisition) is far more expensive than keeping existing ones (customer retention);
The lower the churn rate, the more loyal customers;
It measures the impact of various products/services/projects or company initiatives;
Determinates the company’s progress and provides benchmarks to measure against
Some industries are more affected by churn than others: in the United States, online retail has a churn rate of about 22%. However, SaaS companies aim for a yearly 5% or less churn rate.
How to calculate CCR?
You must first define a specific period to calculate your churn rate.
After you’ve defined your time, divide the number of customers who churned by the total number of customers you had at the start of the time period.
The formula is: CCR = total number of customers lost divided by total customers started with.
Another way to calculate CCR
Another possible way to calculate the churn rate is to do a reverse sum of the retention rate.
Churn Rate = % lost customers in period X / % lost customers in period Y
There are so many metrics for measuring the customer experience, and the question of whether you should track and measure all metrics is valid. Well, the answer is no. BUT, you should carefully review your business goals, set the indicators relevant to your business, and measure those. Another essential piece of advice here is before you start sending out surveys and asking for customer feedback, you should know precisely how you will use it. However, we think it’s important to understand the appropriate customer experience metrics for your company’s growth. And if you have difficulty identifying, tracking, and measuring all those metrics, you can always reach out to us. FrontLogix provides strategies for improving your overall customer experience and improving the CLV, CRR, CCR, and other important KPIs.
Providing a positive customer experience is critical to keeping your customers happy and satisfied. They’ll stay longer, and you’ll have better business results. As a result, investing time and money in measuring customer experience metrics is essential. These metrics will not only help you understand how simple your customers find it to use your product or service, but they will also provide you with actionable insights into improving many aspects of your business. This can significantly impact your company by lowering churn or increasing retention.
Simultaneously, these metrics can help you see where your CX team excels and where they can improve. Collecting and analyzing these metrics can also improve your products, services, and procedures. The better you understand how your customers use your offer, the more enjoyable you can make the entire CX for them.
Measuring customer experience can be overwhelming, but it’s crucial for achieving better performance results. The previous guide shared the importance of measuring CX and the most important key performance indicators (KPIs) to understand and track. Now, we’ll dig deeper into those KPIs, and we’ll learn how you should calculate them correctly.
Customer Satisfaction and Loyalty
In this guide, you’ll learn how to measure and calculate the most important performance indicators for customer satisfaction and loyalty. And in terms of Customer Experience, satisfaction and loyalty are the most important factors to consider. Both are closely related to customer repurchases and business growth. We’ll look closely into the three customer experience metrics involving customer input and feedback. Net Promoter Score, Customer Satisfaction, and Customer Effort Score are the most popular customer experience metrics. NPS tracks customer loyalty over time, CES shows how easy it is for customers to get help, and CSAT determines how satisfied customers are after crucial touchpoints in the customer journey.
Net promoter score (NPS)
NPS is the most widely used CX metric, with nearly two-thirds of businesses using it. But why is it so widely used? First, NPS is short and simple for both companies to implement and track and for customers to answer. The NPS survey often has only two questions frequently used to rate a brand, service, or product. NPS is a single, powerful metric for goal setting.
Why use NPS?
It’s quick, simple, and easy for both companies and customers
It calculates how loyal your customers are likely to be
It shows the big picture;
It’s an industry-standard metric: it is widely and well understood, and there are available benchmarks;
An increase or decrease in NPS helps forecast future revenue gains or losses.
It’s also used to evaluate word-of-mouth marketing campaigns.
Calculating NPS is quite simple, really.
Send an email or a store survey with only two questions
Have a scale from 1 to 10 for the customers to rate
It’s quick, simple, and easy for both companies and customers;
You’ll sort the respondents into three groups: Detractors, Neutrals/Passives, and Promoters are the three types of respondents.
Those who answered 1–6 are detractors, 7–8 are passives/neutrals, and those who answered 9–10 are promoters.
Subtract the total number of detractors from the total number of promoters. The formula is: NPS = % Promoters – % Detractors If the results show that 70% of your customers are promoters and 10% are detractors, your NPS score will be 60%.
Customer Satisfaction (CSAT)
CSAT, along with NPS, is one of the most commonly used CX metrics. It comes in various shapes and sizes, but the most common is using a 1 to 5 scale. An excellent example of CSAT is Google or Facebook ratings. CSAT is a perfect tool for determining whether a customer is satisfied with a one-time interaction. . CSAT is also easily adaptable to any specific needs of an organization.
Why use CSAT?
CSAT is simple and efficient to implement;
Accordingly, customers’ responses are typically straightforward and quick;
It’s targeted, and responses help determine which aspects of the product/service customers are most satisfied with or dissatisfied with;
It can be tailored to any specific area or need;
It is frequently requested of a customer following a transaction or support ticket to assess the efficiency of the customer service department;
CSAT is an excellent way to learn what the customers think of a brand at the moment.
How to measure and calculate CSAT?
Send a short survey immediately after customers’ interaction with your brand or their interaction with a specific area of your service or product;
Usually, the survey contains only one question: “How satisfied were you with your experience/our product/service today?”;
Provide a scaling system (on a scale of 1-5 or 1-10) from very satisfied to very dissatisfied.
Measuring Customer experience
Calculating the CSAT can be done differently, depending on what works best for the business.
Use Happy-Neutral-Unhappy Ratings
Use 5-star ratings
Use one of the Two different formulas:
With these formulas, you can:
Take an average of all the results. In this case, the CSAT formula is to add all scores and divide the total by the number of respondents. Then, multiply the result by 10 to get the CSAT score %.
To calculate an average customer satisfaction score, take the number of “Very Satisfied/Satisfied” responses, divide by the total number of respondents, and multiply by 100.
Here are examples for both:
Your CSAT survey had 20 respondents. If the total of their scores is 100, you have a 50% CSAT score.
If you had 20 respondents and ten said “Very Satisfied/Satisfied,” the CSAT score would be 50%. (0,5 times 100).
Customer effort score (CES)
The third most popular customer experience metric that involves the customer’s input is the Customer Effort Score. CES is a transactional metric that evaluates the ease of use of a single solution. The more accessible (and more effortless) you make the customer experience, the more likely your customers will buy from you again.
According to research, 94% of customers who had an easy experience are more likely to buy again. Also, 81% of the customers who felt like buying was too much effort are more likely to share their negative experiences, compared to 1% of those who had an easy time.
CES asks, “How easy was it to solve your problem today?” Usually responding with a 5- or 7-point scale system.
Measuring Customer experience
Why use CES?
CES is simple and efficient to implement;
It assists you in analyzing the product/service’s complexity
It evaluates the ability to improve usability. Furthermore, reducing effort may increase customer loyalty. As a result, CES may be the best metric for predicting loyalty.
How to measure and calculate CES?
Send the survey immediately after the customer interaction. Ask your customers to rate the interaction from low to high in the survey. To calculate the score, see the average and distribution of scores.
The formula is: CES = Sum of all customer efforts score / Total number of responses.
Measuring customer experience metrics is essential for a customer-facing business. The most important metrics to measure customer satisfaction and loyalty are the Net Promoter Score (NPS), Customer Satisfaction (CSAT), and Customer Effort Score (CES). These customer experience metrics can tell you how simple or complex it is for customers to use your products, directly impacting whether customers will refer you to their friends and colleagues and continue to do business with you. In the following guide, we’ll help you how to calculate the most important metrics related to customer value.
You have decided to outsource the CX but want to ensure it provides the necessary success and results. How to measure customer experience is a complex matter primarily because experiences include multiple touchpoints across multiple channels and different specific goals. So, how can you know what works and what doesn’t? We have prepared a series of guides to help you learn how to measure customer experience and which are the most important key performance indicators (KPIs) to understand and track.
Every work done gets measured. And when measured properly, it’s done even better.
Customer experience starts with customer satisfaction. And when customers are satisfied, they are willing to provide feedback. Customer feedback is measurable and one of the most important indicators to know if your company meets your customer’s expectations.
Start by measuring your customer journey.
Customer journey is every single step your customers take or make when interacting with your products or service. So, to measure the success of the customer service, you need to measure the customer journey. But first, it would be helpful to have a customer journey map. This map will identify all the journey phases and touchpoints for a more straightforward measurement. Therefore, you’ll be able to measure the journey as a whole, measure the stages of the journey, or measure all individual touchpoints of the entire customer journey.
Measuring the customer journey means measuring customer success during all phases and via all journey touchpoints. The essential metrics for overall success are:
Net promoter score (NPS): measures customer loyalty and advocacy, or how many of your customers are likely to recommend your products/services to a friend. This is usually done on a scale of 1 to 10. It can help you understand how the overall experience works in the journey, including products, pricing, onboarding, retail experience, marketing, touchpoints, brand, and customer service.
Customer Satisfaction (CSAT): determines how satisfied your customers are with your products/services and the customer experience you provide. This measures how happy or unhappy they are with an overall product/service or specific features (for example, returning a product)
Customer effort score (CES): measures the effort customers require to achieve what they want, including placing an order, getting a question answered, resolving an issue, or returning a product. Usually, the higher the customer effort, the lower the customer loyalty.
Measuring customer journey phases means measuring each stage your customers will go into when becoming part of your journey. The most common customer journey phases (for both SaaS and B2B) are Awareness / Evaluation, Consideration / Onboarding, Purchase / Adoption, Retention / Renewal, and Advocacy. You can measure each stage individually with different sets of questions to be addressed and different sets of measures. Here are some examples for each phase:
1. Awareness or Evaluation: Are your customers familiar (aware) with your brand, products/services, and features?
Share of Voice (SOV) in the market: measures your brand’s market share compared to your competitors. SOV measures your brand’s visibility and how much you control the conversation within your industry.
Website visits/website users: measures the number of visits or users created on your website over time.
2. Consideration or Onboarding: Are customers looking for your brand when they know they want to buy the type of product/service you offer?
Organic keyword traffic: measures the volume of a keyword used in search engines to attract free website traffic over time.
Direct website traffic: measures the volume of visitors that arrive at your website directly, without first clicking on a link on another website.
Monthly Active Users (MAU): measures how many users actively engage with your product or service over a specific time. In this case, the number of active users in a month.
Store visits (if physical store available): provides the number of people who have visited your physical store over time.
3. Purchase or Adoption: Are customers completing their purchases once they begin the purchasing process?
Abandoned cart rate: determinates the total number of completed purchases divided by the number of carts created.
Store visits vs. Purchases (if physical store available): measures how many people have visited your store and purchased a product/service you sell.
4. Retention or Renewal: Do your customers return to your brand for a second purchase after making the first purchase?
Customer Lifetime Value (CLV): determinates the total value of a customer to a company throughout their relationship
Customer Retention Rate: measures the number of customers who return to your business or continue to pay for your services after a certain period.
Customer Churn Rate: measures how many customers have left your company over time or are no longer paying for your services.
Customer service ticket volume,
The number of return visitors: measures the number of customers that will return to your brand for a possible second or third purchase after their initial one or after they have visited your store within a determined time frame.
5. Loyalty or Advocacy: How likely will customers recommend your brand after shopping with you?
Customer referral rate measures how many people refer and recommend your brand to their friends or colleagues. It is the ratio between referred purchases and total purchases.
Net promoter score (NPS),
sentiment via social listening,
And finally, measuring specific touchpoints means defining all possible touchpoints (how customers act with your brand) and setting particular measures to see how each touchpoint performs. Here are some examples:
Example #1: Digital touchpoint metrics (in case of an Online-store or web-based service placement):
Chat/call/ ticket volume: measures the number of chats, calls, or tickets received over a certain period of time. This shows precisely how many of your customers need help.
First contact resolution: measures how many of your customers resolved their problem in a single interaction.
Average resolution time: measures how long it takes to resolve a customer’s problem, on average.
Average response time: measures how long it takes for the CXR to respond to a customer query.
The number of tickets reopened: measures the number of tickets reopened over a specific period because the customer was dissatisfied with the initial support and must return for the correct solution.
Average handle time (AHT): measures the total amount of time spent in conversation with each customer by each contact center agent – including hold time and time spent completing forms or other tasks as a result of the conversation and the length of the conversation itself.
Customer satisfaction survey: Determines how satisfied your customers are with your customer support, services, or products.
Frequency of up-sells & cross-sells: the number and frequency of up-sells / cross-sells made
Example #2: Physical touchpoint metrics (in case of a Retail-store):
Store visits vs. number of purchases
Total order value / cart size
Overall sales in retail
The number of queries for the staff
Overall cross-sell & up-sell
Drawing a conclusion
Measuring your customer experience is more than necessary. It’s crucial. There are so many factors to consider and so many metrics to follow. Those metrics will tell you different aspects of your customer’s journey with your brand. You’ll know if you meet your customer’s expectations, how easy to use your services or products, and if your customers will refer you to other users. But also, you’ll be able to know how your CX team is performing, whether it’s providing the expected solutions and help and whether your customers are satisfied with them and your company overall. In the next guide, we’ll help you how to calculate the most important metrics so you can have visible results.
If you’ve read previous entries of this blog, you already know the importance of exceptional Customer Experience and its impact on business growth. But reaching Next-Gen Customer Experience is not an easy job! This guide reveals what to do to take your customer experience to the next level!
It’s all about the people.
No matter what the tech companies say about chatbots and AI, you still have to have the right people! No software will help customers as much as talking to a real human will. So, to improve Customer Experience, you need to have a dedicated team of our Customer Experience Representatives (CXRs) who will always be there to take proper care of your customers. This team of skillful, knowledgeable, resourceful, creative, educated, well-trained, and helpful people will be accessible whenever your potential or existing customers need them. They’ll listen to your customers, understand their questions, and keep them happy. Your team needs to prioritize learning everything about your business, its products, competition, strengths, and weaknesses and knowing how to provide solutions best to help your business grow.
Customers hate being on hold, no matter how nice the music is. They just want their questions answered or their issues resolved. Not in minutes, seconds. And at any time, day or night. So, no matter the time zone, business hours, or communications channels – You. Have. To. Be. There.
The Omnichannel experience
Leverage all the channels you have available. This way, your customers will be able to seamlessly connect and pick up where they left off on one channel and continue on another. That’s exactly what customers expect from brands—seamless communication and exceptional care. Delivering the omnichannel experience is challenging but will level up your customer experience and business growth when done right. Here are a few tips on how you can improve the omnichannel experience.
Apart from being informative, stable, and fast, you should make your website mobile-friendly and responsive. Most of your customers will access your site from their smartphones, and the first impression they receive is the most important one.
2. Live chat support
Have a chat ready with quick and instant replies or for connecting with a CXR. Live chats are an excellent tool for immediate response and an appropriate bridge for linking with a CXR.
3. Social support
Customers need to find you via social media. Social channels are some of the most powerful review tools where customers refer to and recommend brands. If you have the proper communication and support on social, it will massively add to your CX equation.
4. FAQ knowledge base
While some customers may contact you for an immediate answer, some customers would rather read a FAQ or watch a video. Therefore, having a self-service knowledge base is definitely a good idea.
5. Email support
Have an email dedicated to your customer’s queries, and check it frequently. Reply to their emails immediately, and provide solutions right into their mailboxes. But also, use email as your marketing tool. It all adds up to the funnel.
6. Phone & SMS support
Always have a dedicated support number available for your customers. A line which they’ll be able to reach at any time. And if they prefer to text instead of call, give them that too. They will appreciate the effort.
7. In-app support
Finally, have a prepared solution for all of your customers who don’t text or call and don’t prefer email or live chat. Find out the channel or the app they use and be there. Provide support via Messenger, WhatsApp, and any other platform your customers use and find valuable. Adjust to their communication habits and show up in the right places. You will not believe the satisfaction you’ll get with such a simple step.
Customers will have all sorts of questions. While you can’t predict everyone, you can foresee how customers will try and get in touch to ask them. Make sure you make it easy to contact you in the ways they prefer. They need to feel appreciated and heard because served customers are satisfied customers! We at FrontLogix firmly believe in this cycle. Every situation has a solution, and we are here to provide one. Learn more about FrontLogix services here.
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.
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.
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.
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?
Everybody is talking about customer experience nowadays, but what is CX, and why is it so important?
The customer’s interactions with your company, brand, product, or service are known as the customer journey. How they feel about all those interactions is Customer Experience. As the customer moves from discovering the brand and receiving information about products or services, pricing models, and purchasing options to post-purchase handling, troubleshooting, and support, it shapes the Customer Experience. Whether their interactions are offline (in a physical store) or online (e-commerce or social media, email, etc.), doesn’t matter. Customer Experience = Brand Experience.
Each brand is unique, as is every single one of its customers. Therefore, today it’s all about knowing your customers, asking them the right questions, listening to their responses, and acting on their feedback. All of this adds up to a fantastic Customer Experience. Making your customers feel heard is the key to success, as healthy customer relationships create stable and long-lasting businesses. Excellent customer experience improves Customer Lifetime Value (CLV), customer retention, and CSAT score, increasing loyalty and brand advocacy. And this is precisely why Customer Experience is so important.
The power is in the customers, not in the brands.
If you and your company fail to meet a customer’s need – you’re doomed. They sit on the throne today. Customers have the power to shape how business is done like never before. Because at the end of the day, every business exists to serve its customers.
Customer Experience has become a top priority for almost every company today. If you want your brand to remain in good standing in the eyes of your customers, you ought to thoroughly evaluate CX. If your customers like your brand and the experience, they WILL tell people. They will share on social media, spread word of mouth, review, refer and bring new customers in. BUT they will do the same if they’re unsatisfied. Likely even louder and more aggressively. Few forces in nature equal an unsatisfied customer.
The shift from a profit-centric to a customer-centric business model
As Customer Experience has become a real game-changer, businesses have become obsessed with delivering mind-blowing customer experiences. The latest trends show a shift from a profit-centric to a customer-centric business model. However, building a customer-centric business and excellent Customer Experience requires company-wide commitment and trustworthy partners. Many times this is easier said than done. And as much as companies want to make this shift, many fail to deliver.
Getting your business to the next level
Today, an average customer uses at least three devices for communication. In their ideal world, they want a seamless transition from tablet to smartphone to desktop to person. This should be the foundation for Next-Generation Customer Experience. But all of this is an exhausting and overwhelming process, and not all companies can do it well. Especially when “well” is not good enough anymore. CX needs to be amazing! That’s why many businesses decide to outsource Customer Experience to BPO providers and contact centers. By outsourcing CX, you ensure your customers are handled professionally and promptly. Create satisfied customers, keep them coming back, and elevate your brand to another level. Frontlogix takes your success and customers seriously. We provide dedicated CX and many other outsourced business solutions.