Five reasons why a customer experience strategy is vital for your business

by SmileBack
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2 min read

In “What is a customer experience strategy?”, we revealed that customer experience is already a big opportunity for your business to stand out. Below, we give 5 reasons you should be prioritizing your customer experience strategy.

1. It improves customer satisfaction rates

Customers appreciate companies that listen to feedback, and adjust accordingly to craft a better customer experience overall. Ideally, this involves gathering quantitative and qualitative customer feedback in real-time, and in a streamlined, user-friendly way at each possible interaction. Generating these types of data sets, such as through CSAT surveys, creates valuable and measurable opportunities for improving client satisfaction.

The first step in any effective customer experience strategy, is to simply listen to your customers’ wants, needs, challenges, pain points, and any positive feedback they have for your company.  Find a way to make the process of gathering this feedback in abundance a part of your processes, and make the insights actionable.

2. It reduces customer churn

More than two-thirds of customers name bad experiences with a brand as a primary reason for churn, according to Esteban Kolsky in 2015 “CX for Executives”. A customer experience strategy that regularly collects and analyzes customer feedback can more quickly detect churn risk, determine why it’s happening, and devise solutions to address its cause.

3. Acting on customer feedback increases revenue

By providing a positive and memorable customer experience, your business inches closer toward new sales in the short term, and repeat sales in the long-term. But aside from this obvious potential impact, enhanced customer experience can increase revenue in another, less visible way…

4. Increased customer satisfaction keeps you ahead of your competitors

According to an Econsultancy report, fewer than two-thirds (62%) of companies agree they have “a cohesive plan, long-term view, and executive support for the future of [their] customer.” This signals an opening in the market for organizations that shift their focus to developing standout customer experiences, before other competing businesses in their industry or niche.

5. Great customer service transforms customers into brand advocates

It’s no secret – and it’s often a company’sworst fear – that customers will sometimes take to online forums and reviewsites with negative reviews and complaints. By using feedback software andmaking the most of a customer experience strategy, you can stop that fromhappening. Instead, customers can use those same word-of-mouth and digitalreputation tools to praise, thank, or otherwise publicly support your company.

Ultimately, you play a critical role in shaping your digital reputation, and in making sure that your excellence shines through, rather than the result of a bad day or a slip up here and there. Remember: when someone has a particularly positive experience with your brand, they just might become an unofficial brand advocate for your company.

Here are just a few examples of the brand advocacy and community marketing you could be benefiting from:

• Personal recommendations of your products or services to family members, friends, and coworkers

• Social media follows, shares, and other visible online interactions with – or that mention – your brand

• Positive mentions of your brand, as the customer participates in various online and in-person communities, associations, panels, conferences, or other industry events

Ultimately, customer feedback and brand advocacy can make or break a business, particularly in crowded industries. With a thoughtful strategy behind your overall customer experience strategy, engaged future customer advocates are already out there among your customers.

Transform your customers into your advocates today!

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