What is Customer Experience?
The concept of Customer Experience (CX) is becoming more and more popular. But what does it actually mean? There are many definitions of Customer Experience. One of them says that Customer Experience is a total of all emotions and experiences that are associated with a certain brand or company. The company as a team of cooperating systems, processes and people generates specific actions that the customer experiences. All of customer interaction related to the company or brand builds relations based on the mentioned experiences and emotions. This is how the Customer Experience is created.
Customer Experience may be related to:
- Sales process
- Marketing activities
- Previous experience with certain company or brand
- Product or service
- All other customer experience, which customer gains during the Customer Journey.
Why designing Customer Experience is becoming so popular?
For a long time, more and more sources and authorities indicate that the main field of competition for companies in the coming years will be Customer Experience.
Three main reasons for the growing popularity of Customer Experience are:
Increased customer expectations – As customers, we expect more from customer service. A few years ago, if we were not too irritated after leaving the bank or office, we could already say that we were satisfied. Today, we want more than just get something done. We expect professional and friendly service (preferably personalized), no queues, transparent forms and understandable messages.
Macroeconomic change – Over the past 170 years the service sector in global GDP has grown from 20% to over 70%. Currently, approx. 64% of global GDP comes from the services sector. As customers, we spend more and more money, so companies have to try harder to satisfy us as their customers, knowing that if we do not buy from them – we will buy from competitors.
Digitalization – The technology that surrounds us has an increasing impact on the everyday life for all of us. Where there used to be people, today there are applications, processes and interfaces. This creates completely new needs and requirements, especially when it comes to customer service.
EConsultancy conducted a survey on trends in marketing. They asked companies which trends according to them will be the most popular in 2018.
Customer Experience was indicated by 22% of respondents, which gives it a first place in the survey. It overtook Content Marketing, which indicated 15% of respondents, Mobile marketing (13%), Personalization (11%) and Social Media (7%).
In the same survey, managers were asked why they think it is worth investing in Customer Experience. 42% responded that the main reason is the improvement of the customer retention rate. 33% of respondents said that thanks to investments in Customer Experience they want to improve customer satisfaction, and 32% want to increase sales of cross-selling and up-selling.
Forecasts and facts about customer service and Customer Experience
- Gartner Institute expects that by 2020, 89% of companies will compete mainly in terms of Customer Experience.
- In 2018 over 50% of companies will implement significant changes to the business model to improve the quality of customer service.
- 55% of consumers would pay more for better customer service.
- 72% of companies say that improving the quality of customer service is a priority for them.
- Companies that leads in customer service increase revenue by 4-8% above average.
- 62% of companies perceive Customer Experience competitive differentiator.
- 89% of consumers stopped doing business with the company after experiencing poor customer service.
- 95% of consumers talk about poor customer service experience with friends and family.
- 90% of customers say that they had a poor customer experience on mobile devices.
You can invest your time in Customer Experience or not, use it or try to avoid it. Regardless of how you approach to this topic, the phenomenon of CX exists and develops.