Basics of Customer Experience Strategy
Customer experience (CX) refers to a customer’s interactions with a company, both during and after a purchase is made. These interactions are made up of three parts: the customer journey, the brand touchpoints the customer interacts with, and the environments the customer experiences (including digital environment) during their experience. Customer experience plays a major role in the success of your business. When existing customers are happy, they will purchase more of your products/services in the future, leave good reviews, and tell all of their friends about you.
According to recent data:
- 49% of buyers have made impulse purchases after receiving a more personalized experience
- $1.6 trillion is lost each year due to poor customer service.
- 73% of companies with above-average customer experience perform better financially than their competitors.
- 84% of companies that work to improve their customer experience report an increase in their revenue.
Data sources: Forbes 2019 & SuperOffice 2020
CX Strategy is the creation and implementation of actionable plans for providing customers with productive, meaningful interactions with your business.They do so by informing the creation and development of products and/or practices that are simple, and exceed the needs of consumers.
But not all CX strategies are created equal. While some are built around extensive market research that thoroughly measures the needs and wants of their specific target audiences, others fail to identify customer needs and/or how to meet them. Developing a strong CX strategy is difficult because there are no universally agreed upon methods or templates for creating them. There is a large amount of variation between businesses and their audiences, so each strategy has to be unique to the company and audience it’s created for. However, there are still common practices business owners should consider using to improve outcomes.
Best Practices for your Customer Experience Strategy
In 2020, 63% of shopping journeys start online and 75% of buyers shop online at least once a month (Statista). Therefore, understanding your digital touchpoints and how they affect consumer perception and loyalty is critical for your business’ CX strategy. You should always be aware of your business’:
- Reachability: What channels are you involved in? How does it use these channels?
- Service convenience: Could consumers become self-serving? What types of channels are used for service provision?
- Purchase convenience: Is there any difficulty in the procurement process?
- Personalization: How well does your company meet individual customer requirements?
- Simplicity and ease of use: Were mobile service / informative channels optimized?
- Channel flexibility: Is the information used and extended across all networks about the customer? Does any customer have a history of behavior, purchases, and interactions through touchpoints?
Improving these factors can be as easy as implementing a few best practices into your CX strategy:
Omnichannel improvements and standardization
- Deliver a uniform and highly personalized experience for customers across platforms and channels.
Research your audience(s) needs and behaviors through tracking tools…
- Digital tracking tools (e.g. Google Tag Manager) can deliver insights from the group you are trying to reach, allowing you to deliver products and services tailored to their individual needs.
Provide users with easy ways to provide feedback…
- Feedback is crucial for your digital experience program, but so is customer ease. To maximize both, make sure that users have a place to easily provide feedback that suits their preferences and takes minimum effort. Meet them where they are.
Track and diagnose potential high-level problems within your digital experience…
- Using a tool such as Amplitude, figure out which elements of the customer journey are working and which aren’t.
Have a uniform mission and vision
- Consumer experience data must be communicated between every company department (e.g. production, research and development, purchasing, marketing, finance, HR, etc.) and not just to the customer-facing positions. This way every department’s employees will (1) be able to contribute their own consumer/market/product knowledge toward the strategy; and (2) will be guided by the same overarching goal/s when they make business decisions. By integrating input and insight across the entire organization, employees will be able to work together more efficiently to deliver an optimal CX.
The Long Term Play
Rome wasn’t built in a day— and your CX plan shouldn’t be either.
Our recommendations? Work to identify and streamline the five best practices above. BUT REMEMBER: the business world, your clients, and your clients’ wants, needs, and pain points are always changing. If your CX plan doesn’t change too, it will be significantly less effective.
Once you incorporate a flexible CX plan, and use it to guide your business decisions, you’ll find it easier to connect with consumers on their terms and make better informed decisions about the direction your business must go in order to be successful.
Learn how Rein can help your business develop a more positive customer experience by using digital CX strategy.
Link to Related Articles