CX, also known as customer experience, is one of the essential elements of a business. Yes, it’s just as important as the products and services you provide. That’s because if you provide a bad experience to customers, guess what: they won’t be back.
This is bad news. Statistics suggest a business has a 60%-70% chance of selling to an existing customer, whereas it only has a 5%-20% chance of selling to a new prospect.
Now that it has been established just how important retaining customers is, it’s time to put a plan into action to keep them around. Of course, a strong CX strategy will also help other areas of your business – more on that below.
The main elements of a CX strategy
If you want your CX strategy to be a success, it’s essential you focus your energy and resources in the right places. In general, there are three main elements that you should focus on with your plan:
- Generate an appropriate emotional response: Customers have emotions when they make purchases from a business, and these emotions can differ depending on the type of industry. It’s essential for you to take into account their feelings and respond appropriately. For instance, your interactions with a customer could be done in negative circumstances, like if you operated a funeral home. In this case, empathy is a suitable response.
- Create an easy experience: When a customer is seeking assistance, the last thing they want to do is jump through hoops until they receive a response. The CX has to be streamlined, where customers only need to use minimal effort to find what they’re looking for while receiving maximum impact in the process.
- Efficient at problem-solving: If you want a customer to feel satisfied, it is imperative you provide an efficient CX that delivers a satisfactory resolution. You never want a customer to get back in touch because the initial solution didn’t solve their issue. Although, if that does happen, see if you can adapt or implement a new service to curtail the problem.
The main advantages of a CX strategy
Now that you know what to focus on with your CX strategy, it’s time to explore the benefits you can receive. Here’s a quick list of some of the main advantages:
- Increased customer loyalty: Make no mistake: if you supply an exceptional customer experience, people will remain loyal to your brand. Even if the competition offers the same products and services at a reduced price, customers will often appreciate the extra value your CX delivers.
- Increased acquisitions: What happens when you have loyal customers? They spread the word about your business to their friends and family. Never underestimate this aspect. 92% of customers say they trust recommendations over any other form of advertising. Plus, the better your reputation is, the more newcomers will trust your business.
- A reduction in expenses: When you understand your customers better – which is what CX will inevitably deliver – there’s less guesswork required about what they desire. As a result, you can slash your marketing budget and save on expenses.