Customer Experience

Why Investing in Customer Experience Now Will Make You More Money in the Long Run

June 1, 2023
9:30 am
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Making the first sale isn't enough — your business needs to keep customers returning for more. Retaining customer loyalty drives growth and reduces marketing spend. But how do you hang on to customers in a cutthroat industry rife with competition? The answer lies in improving your customer experience.

Customer experience defines how your brand is viewed. A reputation for long wait times and bored employees can only lead customers to one place: your competitor's doorstep. To build lasting relationships with your customers that turn them into loyal, repeat buyers, you must understand customer behavior and create value.

This blog will provide an overview of improving the customer experience and discuss the benefits of focusing on customer retention rather than acquisition.

What is Customer Experience?

The customer experience definition is the totality of a customer’s journey with your product or service. It encompasses all interactions before, during, and after purchase, from seeing your Facebook ad to writing a Google review.

Customer experience expectations have evolved with technology. In the past, the customer experience was limited to providing a good product or service and having friendly customer service agents. That's no longer enough. Customers now want companies to understand their needs and provide personalized experiences that make them feel valued and respected. They expect convenience, speed, efficiency, and easy access to relevant account information.

Customer Service vs. Customer Experience

Customer service and customer experience are two distinct terms. Customer service is focused on the pre-sale and post-sale process, while customer experience encompasses the entire journey from awareness to loyalty.

Customer service typically involves helping customers with technical issues or offering advice about a product or service. It’s about providing needed support, answering questions, and solving problems.

Customer experience, by contrast, is about creating a positive path. It's an ongoing process that begins long before the customer makes a purchase and continues after they’ve received their product. It includes everything from promotional emails to product packaging, and it's focused on creating an enjoyable experience for the customer so that they become repeat customers.

Customer service is just one part of the overall customer experience.

Customer Experience vs. User Experience

Customer experience and user experience (UX) are often conflated, but they're actually quite different. Customer experience refers to the overall journey a customer takes with your business, while user experience is focused on the interaction between a customer and your product or service.

Good UX design makes interactions as frictionless as possible by simplifying complex processes or eliminating tedious tasks. It also involves anticipating customer needs. Is the product easy to use? Is the interface intuitive?

Customer experience is a more holistic approach that considers all of a customer's interactions with your business.

CX vs. UX isn't a competition. Ultimately, both customer and user experience are essential in maintaining your customer base. They work together to provide a consistently enjoyable and valuable experience when done right.

The Importance of Customer Experience in Today’s Business World

Companies can no longer stand behind their products or services alone. To build confidence with today's consumers, your business needs to build a brand with recognizable values. Develop your image by creating a unique logo or incorporating storytelling into your marketing campaigns.

Your customer experience is part of your company personality. For example, if you want to push a carefree, fun image that appeals to Generation Z, sending robotic-sounding responses to customer queries will interfere with your goals. Instead, the customer experience should be friendly and laid-back.

The rising value of a strong customer experience is linked to changing consumer behavior. Consumers are more likely to look for a company that offers personalized and value-added features. Companies that invest in customer experience are well-positioned to stand out.

Some business owners mistakenly wait to grow their business before the optimize the customer experience. But in today's business world, those reaching the top aren't shying away from investing in customer experience now. There are several key benefits of investing in customer experience:

  • Increased customer retention/customer lifetime value
  • Stronger brand reputation
  • Scalability
  • Team optimization

Taking the time to invest in customer experience now is well worth the resources.

4 Reasons Why You Need To Invest in Customer Experience Today

When you invest in your customer experience strategy, it can pay immediate dividends. Here are four reasons why this investment is a good idea.

1. Retain More of Your Customers and Increase Their Lifetime Value

Depending on new customers cash flow is riskier and more expensive than having a core customer base. New customers are always welcome, but retaining their business is critical. Solid customer experience practices can help them keep your brand in mind.

An estimated 5% increase in customer retention can boost profit by 25%. For most successful businesses, returning customers make up the bulk of purchasers. Those customers already know, trust, and understand your brand. Returning customers spend on average 67% more per purchase. Investing in customer experience is a great way to increase their lifetime value.

Once your customer experience is perfected and current customers are happy, you have more time to go after more prospects and improve your offerings.

2. Build And Maintain Brand Reputation

Your customer experience and how you interact with customers shape how the world sees your brand. If you can build a community, you'll be rewarded with loyal customers who will advocate for your business. Brand recognition and advocacy play a massive role in this.

When the customer experience is poor, it's difficult to recover from the bad press and word of mouth that can build up quickly online. People want brands they trust, so make sure to go above and beyond every single time for your customers.

Brand recognition is crucial because it helps to create a broad customer base. People are more likely to purchase from and recommend brands they recognize. Once your customers become advocates, the impact of your brand can spread further than you'd expect.

3. Scale Your Business Faster

Investing deeply in customer experience can save you the hassle of playing catch-up when scaling your business. Having a well-structured customer experience strategy already in place means you'll be prepared to grow with your customers.

Your customer service team will be better equipped to handle questions and feedback more efficiently. And when you invest in customer experience tools, you can streamline customer service requests and gather data to help inform decisions about product updates or new offerings.

4. Optimize Your Team

With a well-calculated customer experience investment, you can use technology to optimize your team and save time and money while providing a better customer experience overall.

For example, customer experience software can help you automate the more tedious processes, freeing up valuable time for your team. The software can also provide insights allowing you to understand customers’ needs better and act accordingly.

CX technology can also seamlessly match customers with the right response team. That way, customers can get the answers they need quickly and more effectively.

Investing in customer experience does more than just give you a competitive edge — it's essential for long-term success. Improving your customer experience now will help ensure your business is prepared to grow as it gains momentum.

Manage Your Entire Customer Experience With One Unified Platform

Finding a reliable partner is essential when you're ready to invest in customer experience tools and software. You need technology that can support your business goals. You need Acquire.

Acquire's unified platform allows for real-time monitoring of customer interactions and intelligent routing of customer service requests, enabling agents to access customer data easily. Here are three reasons why Acquire is the perfect choice for businesses that want to deliver a great customer experience:

1. Scale

As you scale, Acquire scales with you. You can add more agents and capabilities as needed without any additional effort and extremely beneficial for businesses that experience seasonal fluctuations.

Without fast scalability, you're stuck trying to hire more agents and can easily miss out on potential customers. Business doesn't wait; you need to be ready to grab opportunities as they come. Acquire makes that possible.

2. Unified Platform

The diversity of customer experience software means you can quickly use multiple platforms to accomplish regular tasks. Moving data between these platforms and keeping track of every step can grow tiring.

Acquire solves this problem by offering a unified solution that manages all your customer experience operations from one place. It's easier to manage your team and stay organized when you don't need to mix and match different pieces of software or integrate them all separately.

3. Easy Implementation

Acquire allows for easy implementation in minutes with no coding required. You don't need to wait for engineers or developers to start. As your business evolves, you can add more complex features.

No matter your business size, you can rely on Acquire's unified platform to constantly adapt and provide the necessary tools to keep your customer experience running smoothly. Book a demo to see it in action today.