customer experience strategy

Customer Experience Strategy in Only 7 Steps

Did you know? The companies that focus on customer experience strategy reduce churn and increase revenues — leading to higher profits! According to the 2020 Digital Marketing Trends Report by Econsultancy and Adobe, customer experience is the most exciting business opportunity to invest in 2020.

What is customer experience?

Customer experience refers to the total of all experiences the customer has with the business, based on all interactions and thoughts about the business.

Is the customer experience the same as customer service?

No, but customer service is part of customer experience indeed. 

Imagine you contact an Amazon employee because your order has not been delivered. The employee will reply to you fast, be very helpful, and refund you within three days. This is an example of great customer service. However, Amazon doesn’t stop here. It recommends you different products, based on the last ones you purchased, it gives you vouchers from time to time, sends you reminders about your order and even a photo when it is delivered! Now, this is a GREAT customer experience. The chance that you will leave Amazon after this experience, is very very low. Because great experience means happy customers, and happy customers mean loyalty. And we all know what loyalty means. Profit.

Here are a few customer experience statistics that we found interesting:

  • Customer experience is set to be the number one brand differentiator in 2020 (and beyond)
  • 1 in 3 customers will leave a brand they love after just one bad experience,
  • Customers are willing to pay a price premium of up to 13% (and as high as 18%) for luxury and indulgence services, simply by receiving a great customer experience,
  • 49% of buyers have made impulse purchases after receiving a more personalized customer experience.
  • Customers that rate companies with a high customer experience score (i.e. 10/10) spend 140% more and remain loyal for up to 6 years.

Now that we know the trends and benefits of customer experience, maybe you are asking yourself:

How can we create a better customer experience strategy? 

1. Start from within the company

It is really important that even before trying to provide a great experience to your customers, everyone in the company shares the same vision and core values. For example, Amazon’s core values are customer obsession, frugality, the bias for action, ownership, and high bar for talent. Later Amazon would add a sixth value, innovation. Every employee should know and live by these values. Now ask yourself, what are the core values of your company? What is your vision? How do you want to be remembered by your customers?

2. Understand your customers

In order to create a good customer experience strategy you have to understand who your customers are. Customer segments are very generic. You can’t just group people age 45-55 together just because it makes it easier for you. 53 years old Jake is not similar to 55 years old Kate. One uses technology all day at work and the other doesn’t know how to use a smartphone. That’s why it is really important to create personas, so your employees know and understand each customer’s needs better. Personas are fictional characters, which you create based upon your research in order to represent the different user types that might use your service, product, site, or brand in a similar way.

Buyer Persona: Definition, Types and Examples - Glossary

3. Build relationships with your customers

Serving your customers is just not enough anymore, everybody can do that. What can differentiate you is the relationship you build with your customers. Show that you care about them. This is a very important part of your customer experience strategy. Take the example of Zappos, they respond to every email they receive, even if it’s to the CEO. In the example below, a woman sent a request to Tony Hsieh and even though he was unavailable, his representative sent a humorous and engaging email back. Have a look!

4. Train your Customer Support employees

You probably would think customer service is the last thing you would ever invest in. But honestly, all the best technology and products you are offering would mean nothing if your employees don’t know how to talk and build relationships with your customers. Remember, how you say something is more important than what you say.

Ideas for Better Customer Relationship Management

5. Gather customer feedback

There are many ways you can get feedback from your customers, from live chat tools, follow up email, surveys, reviews, to social media interactions. Your customers talk about you all the time, you just have to listen.

Customer Feedback Illustration by ++hellohello on Dribbble

6. Analyze your customer feedback

Analyzing customer feedback is not easy. Analyzing large amounts of data from different sources can get messy and confusing. That’s why companies nowadays are oriented toward AI-based tools that do all this process automatically. Pyoneer is here to help you listen to your customers, analyze their feedback, and make them happy by providing a better customer experience. 

“AI can help organize and analyze large amounts of data so it can present the right, actionable information to drive better customer experiences, much easier than you and your team could ever do on your own.”

Daniel Newman
Principal Analyst and Founding Partner, Futurum Research

7. If you can’t measure it, you can’t manage it.

Maybe you are thinking right now, “How the heck can I measure something like customers experience?” It seems pretty intangible, right? However, there are three metrics you can use to measure your customer experience. 

  • Net Promoter Score (NPS)

Net Promoter Score (NPS) is a CX metric that surveys customers based on one question: “On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?” Customers who are promoters score 9 or 10. Passives score 7 or 8. Detractors score 6 to 0.

Customer Satisfaction Score (CSAT) is the most popular transactional metric. A CSAT survey asks a customer how satisfied they are with a recent interaction–often a purchase or a customer service call–on a rating scale. CSAT is flexible and highly customizable.

You can also try other survey formats. Here is a smiley-face based CSAT survey embedded in an email:

  • Customer Effort Score (CES)

Customer Effort Score (CES) surveys ask the customer “How much effort did you have to expend to handle your request?” and is scored on a numeric scale. It’s a customer service metric that is used to improve systems that may frustrate customers.

We hope you found this article helpful. By following these steps one by one you will be able to create a great customer experience strategy, make your customers happy, and increase your revenues.

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