Why Is Customer Experience Critically Important In Business?

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Customer experience, or CX, refers to how your clients perceive their overall interactions with your company or brand.

Every interaction a consumer has with your company, from using the website to contacting customer care to receiving the goods or services they ordered from you, contributes to your customer experience (CX). 

A great customer experience is your key to success since everything you do has an impact on how your consumers see you and whether they decide to return or not.

Providing excellent customer service is crucial for any organisation. The more satisfied consumers you have, the more repeat business you’ll get, the more raving reviews you’ll get, and the less friction there will be with returns and complaints.

Providing excellent CX has several advantages, including greater client loyalty, better client satisfaction and improved word-of-mouth advertising, favourable comments, and referrals. So how do we create a great customer experience?

customer experience

#1 What is a great customer experience?

No single universal checklist can be followed to ensure a positive customer experience because both your company and your clients are special. 

However, a survey of 2000 CX professionals from a variety of businesses has indicated a number of common guidelines and here are some of the more important conclusions below.

In essence, you will provide excellent customer service if you:

  • Make it a major priority for the entire company to pay attention to customers
  • Utilise consumer feedback to have a thorough understanding of your clients
  • Create a mechanism that helps you to consistently gather input, evaluate it, and take action on it
  • Reduce friction while addressing the unique issues and concerns that your customers have

Asking your customers directly will tell you the answers you need, helping you to improve and this ultimately leads to an excellent customer experience. The only practical way to ensure this is via analysis which you can use specific metrics to measure the customer experience.

#2 Metrics for customer experience

From what we’ve said so far, it may seem like customer experience is a highly subjective and challenging term to quantify. To determine the customer experience in your company, you must rely on a variety of distinct CX indicators that can be utilised separately or in combination.

Having a measurable CX indicator allows you to monitor changes in CX over time and assess the success or failure of any adjustments you make that might have an impact on your customers. Here are the four most important KPIs that CX experts use to monitor client experience over time:

  • Customer Effort Score (CES) 
  • Net Promoter Score (NPS)
  • Customer Satisfaction Score (CSAT)
  • Time To Resolution (TTR)

Customer Effort Score (CES)

Customer Effort Score gauges how “tough” or “easy” an action is for your consumers to perform when using a product or service.

After a customer service encounter, CES questionnaires are typically sent out, including questions like, “How simple was it to have your issue fixed today?” and a rating system with 1 being the most challenging and 7 being the easiest. 

Additionally, they function well whenever clients reach significant turning points in their journey (for example, after they sign up for a free product trial or after they successfully conclude a transaction).

Net Promoter Score (NPS)

A customer’s response to a straightforward closed-ended question, “On a scale of 0 to 10, how likely are you to suggest this product/company to a friend or colleague?” yields the Net Promoter Score, a measure of customer loyalty.

The goal of NPS is to obtain a straightforward numerical score on a scale from 0 to 100 that measures customer experience. You can choose to slightly modify the question to better suit your business and utilise a follow-up NPS inquiry to gain more insight.

Customer Satisfaction Score (CSAT)

Customers’ satisfaction with your goods or services is measured through CSAT surveys. They can be expressed in binary yes/no responses or on a 5- or 7-point scale (1 being very dissatisfied and 7 being very satisfied).

CSAT concentrates the customer’s attention on certain touchpoints they were satisfied or dissatisfied with, as opposed to the Net Promoter Score, which encourages customers to examine their overall feeling towards the company (and consequently, whether they are likely to suggest it or not).

Time To Resolution (TTR)

TTR is the average time it takes customer care representatives to address a problem or ticket once a consumer has opened one. It is computed by summing together all resolution times and dividing the result by the number of cases resolved. It can be expressed in days or business hours.

A lengthy wait or slow response time is the main source of customer annoyance, according to CX statistics and trends. TTR is a critical measure to monitor and improve in this regard because the shorter your TTR, the more likely it is that your clients won’t be frustrated when they contact you for assistance.

In summary, when you can score well in the metrics, most likely you would have succeeded in giving your customers a great customer experience and that naturally results in higher customer satisfaction, better customer loyalty and greater sales turnover.

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