“Your most unhappy customers are your greatest source of learning.” – Bill Gates
The above quote clearly signifies the importance of customer experience and how a dissatisfied customer can make or break your brand. Dissatisfaction with a brand is the outcome of various factors. In some cases, it might just be a nominal scenario going wrong while in others it can be a pile of factors leading to unhappy outcomes for your customers. Your customers are the major source of your earnings and it costs 7 times more to acquire a new customer than to retain existing ones. So, it is advisable for businesses to considerably focus on their customer experience strategies in order to survive the stiff competition in the market. If gone wrong, the impact will not be a great one – Customer defecting to your competition will be higher than ever.
Here are few reasons of customers defecting to your competition:
- Inconsistent experience- With the rapid growth in the number of interaction channels, the customers are demanding more consistent and personalized experiences. The legacy platforms have held back organizations from innovating, delivering relevant and seamless experience across channels. What’s more challenging for these organizations is to align communication channels and siloed processes into a single window where customers demand can be met proactively and seamless experiences can be created consistently. Thus, improper and inconsistent customer experience can lead to increased customer defection rate and slow down the growth of the firm.
- Reactive Service– Customers are omnipresent across channels of communication. They might start from one channel researching about a product and end on another channel buying the same product. In such a scenario, it becomes quintessential for organizations to solely focus on the needs of the customers. Understanding customers well in advance will provide organizations with the opportunity to upsell and cross-sell.
- Product Innovation– Being innovative is the need of the hour. Many organizations with traditional and outmoded business models are still focusing on their core product without accessing the needs of their customers. And, with the rising competition in the market, it becomes difficult for these organizations to retain their existing customers.
- Inefficient interactions– The new age technologies have transformed the way in which interactions take place. Customers want quick and real-time interactions on their preferred delivery channel. With the right technology in place, it becomes difficult for organizations to deliver experiences as per the customers need. The untangled communication and resolution process end up being time-consuming which leads to the discontentment of customers.
Winning the battle with great customer experience
Initially, customer experience was considered as an acronym. But with the introduction of new terms like Artificial Intelligence, IOT, Big Data, Virtual Reality, customer experience is now considered as the lifeblood of any organization. Customers are more empowered than ever and with slight inconsistency in the services delivered, organizations can end up losing them. With the right technology, organizations can deliver futuristic experiences along with interactive and dynamic communications.
Here is how great customer experience can uplift your organization:
- Brand consistency– Companies willing to improve their brand image are not just seeing customers as their source of earning but at the same time considering them as growth accelerators. Maintaining brand consistency is one of the important goals for organizations in the ‘new real’ today. By providing differentiated services, organizations can create experiences that “WOW” customer which will ultimately improve the brand consistency.
- Improved ROI– Organizations who cater to their customers need with diligence are the ones that are most successful. By delivering superior and on-time experiences to customers they relatively stand a chance to attract new customers and to retain the existing ones with repeat sales. Also, the chance of upselling and cross-selling increases to a great extent.
- Increased CLV– Customer lifetime value or CLV is considered the net profit accredited to the entire future relationship with a customer. The ideal way to increase CLV is by improving the customer satisfaction levels at every instance. As per Oracle Report “86% of customers were happy to spend more for better customer experience delivered by the company.” Thus, customers can pay more for if offered with differentiating and customized services but at the same time bad experiences would force them to switch to other brands.
What are your thoughts on delivering a great customer experience? Please let us know in the comments section below!
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