Innovation management

Importance of positive customer experience for your business By Deana - 4 min read

Importance of positive customer experience for your business

Even the most amazing innovations sometimes fall short because of the negative customer experience. Paying attention to each and every touchpoint along the journey will not only secure your innovation success but will benefit your business on many different levels.

What is the customer experience?

Customer experience starts way before the purchase of the product or services your business has to offer. It is a holistic understanding that every customer creates of your business. It is a complete picture of your brand and/or business that your customer creates throughout a series of direct or indirect interactions with your business. It is their perception, a subjective and internal response to everything they come across that has to do with your business. And it is one of the most important elements of a successful business.

How does customer experience affect your business?

86% of customers are willing to pay more for a better customer experience. – Hubspot

A positive customer experience results in satisfied and, later on, loyal customers. Word-of-mouth is a powerful and far-fetching “tool” in the customer experience. Negative word-of-mouth has a few times stronger effect than the positive one. Customers like to rely on experiences and reviews of their family members, friends and other customers because they find them to be more honest than typical advertising campaigns.

60% of customers say that they trust the reviews of their family members, friends and other customers when learning about a new product. – Hubspot

The end result of every customer experience should be satisfaction. Satisfied customers are more likely to repeat the purchase and share their positive experiences with others. They are more likely to try out a new product your business has launched. Satisfied customers are the ones who create emotional bonds with your business and become loyal. Customer retention is a direct result of satisfied customers.

73% of customers agree that the customer experience drives their buying decision.  PWC

Positive customer experience increases revenue, fuels innovation and drives business growth. Identifying all touchpoints throughout the customer experience and improving them should be of the essence.

Businesses that focus on customer experience have reported 80% increase in revenue.  Forbes

Customer Relations Management VS. Customer Experience Management

These two are closely linked and intertwined with the ultimately same goal - a happy and loyal customer. Customer Relations Management refers more to a business’ view of the customer- purchase history, personal data, returns, inquiries and so on. On the other hand, Customer Experience Management deals with how the customer perceives the business. CEM is an integral part of CRM. Customer service is yet another different segment, but also a vital part of the overall customer experience and customer relationship management.

Every business should work on improving every touchpoint and interaction their customers are experiencing along their journey in order to create a longer, more prosperous and loyal relationship with them. These touchpoints represent the moments when customer’s expectations matched their experience. If you succeed in exceeding their expectation, you are doing a great job! The customer is more likely to come back because of the positive experience. The only setback that can occur over time, if you do not continue improving these touchpoints and your products and services, is that customers get used to higher standards, and after a while consider them as the norm.

Example:

Free parking, Wi-Fi, minibars and AC, spa centers, were all considered to be the cherry on top that exceeded expectations of a guest. Over time, guests got quite used to these conditions and started considering them the new norm. So now, a hotel must come up with new ways of exceeding guests’ expectations and creating that ‘’WOW’’ experience.


Managing key points of dissatisfaction

The most common problems and the main sources of dissatisfaction are:

  • Waiting too long

  • Negative support

  • Difficult purchase process

  • Customer security concerns

  • Rude personnel at any touchpoint 

  • Neglected feedback/inquiries

  • Too much automation


59% of customers switch brands because of poor customer experience.  – SupperOffice
 
Customers like to know that they matter and that they are being heard. Empathy is an important aspect of their experience. They want to know that you understand their needs and wants and that you are willing to help them out. They create a stronger relationship with your business when they feel appreciated. They also want to know that they can easily reach out to you with any concerns and that they can get all the necessary information they need about you and your products and services. Their feedback is a great source not only for ideas for the improvement of your products and innovations, but also a great way to get to know your customers better. Creating a more personal relationship creates emotional bonds and helps you create a loyal customer base.
 
Innovation is more likely to be accepted
 
Creating a unique and pleasant customer experience is not an easy job. There are many unpredictable factors along the way that are out of your control. What you can do is identify as many touch points as possible along the customer journey and try to improve them as much as you can. Doing so, you will enhance their experience. This will make it easier for you when you decide to launch an innovation because all these customers with positive experiences will more likely and without hesitation try out your new product or service and recommend it to others.



Deana - Content creator
Deana
Content creator

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