Customers love personalization and a seamless customer experience. In fact, 86% of the consumers revealed that a delightful customer experience makes them buy from a brand more. This article will share how to use real-time feedback to power your customer experience strategy.
Brands have been fighting for consumer attention more than ever now. A robust and agile customer experience management strategy is crucial to make customers feel valued and stand out. In fact, enhancing CX is the top priority for 45.9% of businesses in the next five years.
Before we dig deeper, let us look at what is customer experience management strategy in simple terms.
What is a customer experience (CX) management strategy?
Customer experience (CX) is the sum of all the interactions, experiences, and communications a customer (or prospect) has with your business through the entire buyer’s journey.
It is really important that the customer has a delightful and positive experience while interacting with you. Positive customer experience impacts the revenue, loyalty, retention rates, and chances of s customer turning into s brand ambassador.
A customer experience strategy is the sum of all the activities you do to offer a delightful customer experience to each customer at every touchpoint throughout the buyer’s journey.
It involves setting goals, measuring customer sentiment, understanding expectations, and making moves to create high-quality experiences for end customers. This includes:
- Creating a customer-focused vision for the entire company;
- Matching business goals with customer expectations;
- Benchmark customer experience parameters
- Monitor and analyze what customers are saying (or perceiving) about you;
- Prioritizing activities that will positively improve the customer experience.
Why do you need a customer experience management strategy?
Customer experience management strategy helps you dig deeper into trends, patterns, and insights about your customers and harness them for growth. In fact, research by Temkin Group reveals that investing in customer experience can lead to incremental revenue of up to $700 mn for companies earning $1bn or more.
This does not mean CX management strategy is just for large enterprises. Even in the small business domain, retail, eCommerce, and online business models, better customer experience influence 86% of customers to pay more.
Here are some more statistics on why you should get serious about a CX strategy:
- CX is going to be the #1 brand differentiator in the coming years;
- 33% of customers will stop buying from you even after just one bad experience;
- Consumers are likely to pay a premium of 13-18% in the luxury category just for a great customer experience;
- 49% of customers end up buying more when they get a personalized customer experience from a brand;
- Customers of companies with high customer experience scores spend 140% more and stay loyal for up to six years.
Clearly, investing in CX can bring a lot of incremental revenue, enhance customer loyalty, and beat the competition.
Listening to the voice of customers can be your best bet toward building a CX strategy for your business. Let us see how you can do so easily.
How to create a customer experience management strategy?
The core of any customer experience management strategy is measuring the NPS or net promotor score. It is a critical metric, like the product-market fit, that tells if a customer will recommend the product or service to others
The higher percentage of positive NPS scores, the better the customer experience. Here is how you can start building a customer experience strategy:
Step 1: Measure, monitor & analyze.
Every CXM strategy needs base data about how customers perceive the brand. This involves conducting an NPS survey and asking an important question:
How likely are you to recommend the product or service to a colleague or a friend on a scale of 1-10?
This question is similar to the PMF questionnaire in terms of the format, but it tells you how happy a customer is. There are two types of surveys to measure NPS:
- Relationship surveys: measuring your customer sentiment periodically and analyzing it to understand how their relationship is improving (or degrading) with time;
- Transactional survey: conducted right after a transaction, asking them about their experience. These can be conducted at every stage of the buyer’s journey.
Step 2: Act & grow.
Once you gather customer data through surveys or real-time monitoring, it is time to address their concerns and plug the gaps. This involves:
- Optimizing the conversion funnel: You need to understand where you lack at solving their pain point or delighting them during the buyer’s journey. This involves changing your product navigation, landing pages, onboarding flows, and more. You need to improve conversion rate optimization while keeping your customer at the heart of every decision.
- Making changes to improve the customer experience: If your NPS survey brings a lot of negative feedback, you need to reach out to the customers, understand where they are frustrated, and make changes to your entire product or service proposition accordingly. This is an important part of achieving product market fit, which enhances delight and ultimately increases revenues.
You will start seeing customers responding positively or negatively based on the changes you make. At this point, it is really crucial to keep tracking customer sentiment via real-time feedback analysis or NPS surveys.
You will also see conversions and referrals grow if you change your entire customer experience management strategy.
Make sure to tie the NPS scores to revenue-driven KPIs. For example, you can link lower NPS scores with reducing revenues in the short or long run. This will help you identify at-risk revenue (customers who are most likely to drop off), helping you further improve on common customer experience metrics.
Implement customer experience management strategy using GapScout.
A more connected world post-COVID demands keeping an eye on customer feedback in real-time to delight customers. GapScout accelerates tracking customer expectations by monitoring online reviews and feedback.
Use Gapscout to power your customer experience strategy, and never feel lost when it comes to enhancing customer delight.
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