Socialbaker's new report highlights how a great customer experience strategy impacts the bottom line.
This is the age of the customer. The changes in the landscape have given more power to the customer than ever before and they're expecting alot more than just great products from brands. That's right, a product-centric business alone won't cut it in today's landscape. Customers are now prioritizing experience above everything else. This is an opportunity and a challenge for brands.
How is it an opportunity? Well, for one, it can help brand stand out and win the loyalty of a consumer. Brands whether small or big tier, if they manage to deliver a great experience for the customer on a consistent basis, then that customer will turn into a loyal follower and advocate for your brand. And therein also lies the challenge- Brands need to heavily invest in CX personnel, strategies and technology in order to deliver that experience on a consistent basis. And this requires time and investment.
Global AI-powered social media marketing company, Socialbakers have shared some CX trends in their latest report to help brands get an idea on how to build an effective CX strategy.
A brands' success is now more dependant on the experience rather than product. Customers are spoiled for choice and if a brand is able to make them feel special through the a great experience, the customer is more than likely to stick with that brand. In the age of the customer, having the measures in place to ensure seamless customer journeys from the start to the end is critical. With 65% of customers saying they would stay with a brand long-term if they provided positive experiences throughout the journey, this should be a top priority for brands in 2021 and beyond.
Brands are also facing immense pressure to find ways to promptly identify and address any pain points on all touchpoints along the customer journey. And also, to make good experiences even better.
Today, a robust CX strategy and design can be the difference that helps a brand stand out from the crowd and be a top choice among customers.
How CX impacts the bottom line
As stated earlier, customers are now prioritizing experience over everything else and they're willing to pay to receive a better experience. Studies from PwC and American Express found that customers are willing to pay a 16-17% premium if it means getting better service. This provides brands with a greater incentive to invest more into this space.
And the impacts of a great experience is long-term. Brands that manage to deliver great experiences on a consistent basis for their customers will be able to redude churn and retain more customers. Customers today want experiences tailored to their every need. Catering to these expectations can have a positive impact on your bottom line, as 35% of consumers are willing to share personal data to brands if it helps improve the online experience, and 40% of US consumers said they are more likely to spend more than they expected when experiences are highly personalized to them.
Forrester and Adobe found that experience-driven businesses saw a 1.5x YoY growth in customer retention, repeat purchase rates, and customer lifetime value, compared to other companies
Brands must embrace technology to meet expectations
Customers are extremely fragile today. What this means is that one bad experience is all it takes for a customer to take their business elsewhere. Plus, the cost of acquiring a new customer today is extremely expensive. Hence why there's an immense pressure from brands to deliver on a consistent basis.
Customers today expect easy, quick, and frictionless experiences. They want the right information at a moment’s notice. Having to wait too long or jumping through too many hoops to get what they want is unacceptable.
Customers are taking the first step to solve their problems by reaching out through digital self-serve channels. 60% of respondents prefer using these channels before having to speak to a customer agent. Brands must invest in the latest in technology to help customers solve their problems before they decide to pick up the phone. According to Forrester, 40% more digital customer service interactions are expected to take place this year.
Chatbots is a growing technology being utilized by many brands to help solve the cusomter's needs and questions. Currently there are over 300,000 active chatbots on Facebook Messenger to help customers get quick answers.
( Read how Rainer Mueller, from Nestle Middle East utilized Facebook Messenger to provide a great brand experience for customers during Ramadan )
According to IDC ( International Data Corporation) 's customer experience spending guide, $641 billion is expected to be spent on CX technologies in 2022. But it's not just about investing in hi-fi technology. Being customer centric is a mindset that needs to be cultivated internally within the organization and in every department, even the departments which are not customer facing. Brands are now ensuring resources are assigned accordingly to inspire a customer-first culture.
A company can only succeed in thier CX initiatives if the customer is at the heart of every decision. To do so, every team in the organization needs to be equipped with the tools and timely insights to meet growing expectations.