What is customer experience and why is it important?

What is customer experience and why is it important?

TLDR

  • Customers expect more from companies now, and customer experience (CX) is what helps companies deliver on those expectations.
  • While customer success, customer experience, and customer service are often used interchangeably, they differ in what they focus on.
  • Customer experience centers around a customer's journey with the company, while customer success is focused on proactively helping customers achieve their desired outcomes. Customer support focuses on offering help and assistance with customer inquiries.
  • By focusing on the customer experience, brands can foster positive relationships with their customers, providing an enjoyable experience that leads to loyalty and trust.

As customer expectations, competition, and technology evolve, businesses know that focusing on customer experience is becoming increasingly important. In fact, 73% of consumers say that customer experience is a deciding factor when making purchase decisions, which is why understanding what customer experience is and the role that customer success plays in it can be critical for businesses.

So, what exactly is customer experience? And in what ways does customer success contribute to it?

In this article, we'll share an overview of what customer experience is and the role that customer success plays in creating an excellent CX.

What is customer experience?

Simply put, customer experience or CX is the overall impression a person has when interacting with a company's brand, product, or service.

This includes all aspects of the customer journey from awareness to purchase and beyond — how customers feel while they interact with your business, what kind of interactions they have with your team, what their experience was like using your product, and what kind of follow-up customer service they receive. 

In order to measure a customer's experience, you can use surveys, customer feedback forms, customer support tickets, and other CX metrics to gain insights into what your customers think of their experience.

Customer experience vs. customer support 

It is important to note that customer experience is not the same as customer support. While both are important, they should be considered separately. Customer experience focuses on how the customer feels throughout their journey, while customer support focuses on what kind of help they receive when experiencing issues with your product or service. 

For example, a customer might have a great experience using your product, but if they face technical issues and the customer service team doesn't help them resolve the issue quickly, then their overall experience may be negative.

Customer success vs. customer experience 

customer success vs customer experience

Customer success is what keeps customers satisfied and engaged while they are using your product or service. It's all about anticipating questions or issues that customers may have and proactively providing them with the support they need. It also involves tracking customer data, monitoring usage patterns, and giving personalized recommendations to help drive sales and engagement. 

While this is an essential part of CX, customer success should not be confused with customer experience as it's more limited in scope.

The most common customer experience roles

In order to create a great customer experience, there are typically multiple team members needed.

Here are the most common customer experience roles:

  • Customer support specialists
  • Customer service representative
  • Call center agent
  • Customer support engineer
  • Customer journey manager
  • Customer success manager
  • Customer experience manager
  • CX operations
  • CX admin
  • Digital Strategist
  • Chief Customer Officer (CCO)

10 reasons why customer experience is crucial to your business

Now that you have an understanding of what customer experience is, let's look at why it is so important. Here are the ten key reasons why customer experience should be a priority for any business:

why is cx so important?

Reduces customer churn

Did you know that it costs between 6 to 7 times more to get a new customer vs. keeping the customers you already have? By focusing on customer experience, you can ensure that your customer retention rate is high, leading to increased revenue and cost savings.

Improves employee retention

One of the most important parts of customer experience is that it helps to create a positive work environment for employees. No one wants to work for a company that mistreats its customers or provides a poor customer experience. When employees feel supported to help customers and have the proper tools to do so, they will be more likely to stay with the company.

Increases referrals

Word of mouth remains one of the most effective forms of advertising, so getting customers to talk about your business can be a great way to acquire new leads. Research has found that satisfied customers are likely to share their experiences with up to nine people, while dissatisfied customers may tell twenty or more. Therefore, every effort should be made to ensure that customer experiences are positive, as this will improve the chances of gaining organic referrals from those who have had positive interactions with the company.

Adds brand value

When customers have a great experience with your business, it can create a strong emotional connection to the brand that translates into loyalty. Customers who feel valued and appreciated will be more likely to recommend your company to others as well as seek out what else you offer.

Results in a positive brand image

Creating an excellent customer experience not only increases the value of your brand, it also provides a positive image to potential customers. People are more likely to trust businesses that focus on providing great experiences and will be more likely to buy from them in the future. This is especially true in today's digital age, as people rely heavily on online reviews and customer feedback to make purchasing decisions.

Builds customer loyalty

When customers have a great experience, they will be more likely to return for future purchases. Customer loyalty and brand loyalty go hand-in-hand as customers feel that their needs are being met by your company, which encourages them to stay loyal. This can lead to repeat business and even referrals from those satisfied customers.

Sets you apart from your competitors

Consumers today have more options than ever before when it comes to what companies they choose to buy from. This means that businesses must prioritize customer experience in order to stand out from the competition and create a unique experience for their customers. By focusing on CX, a business can differentiate itself and set itself apart by offering something special that others don't have.

Increases customer lifetime value

When customers are loyal and return to purchase more products or services, the customer lifetime value (CLV) increases. The value of a customer over their lifetime can be calculated by taking into account all aspects of what they buy, how often they buy it, and what they pay. By having loyal customers who purchase from the company regularly, this value will become more significant, which in turn leads to increased revenue for the business.

Helps identify what customers value

By focusing on customer experience, businesses can better understand what their customers value most. This helps to identify what areas need improvement and what changes may be necessary in order to provide the best possible customer experience. Companies can then use this information to more effectively create experiences that meet customers' needs, leading to higher satisfaction and loyalty levels.

Improves your products and services

When customers have a great experience, businesses can use the feedback to continually improve products and services. By listening to what customers are saying about their experiences and what they would like to see improved, companies can continuously strive for betterment. This not only helps to create better customer experiences in the future but also shows that the company values what its customers have to say.

Conclusion

Customer experience is essential in creating a strong brand and increasing customer loyalty. By focusing on providing an exceptional customer experience, businesses can create positive brand awareness, set themselves apart from competitors, increase customer lifetime value and improve their offerings.

Author

Shifa Rahaman

Content Marketing Manager

Contributor