What Is CX & Why Does It Matter

CX – also known as customer experience – defines how people feel about brands and businesses. It’s the impression a brand leaves on a person and It encompasses everything – every stage, every conversation, every interaction that takes place over time and across a variety of channels – that ultimately informs and drives customer acquisition, retention, loyalty, and advocacy.
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Just like life, CX is a compilation of moments. Not to be confused with UX – which describes experiences delivered through singular interactions, such as finding information, completing a task or searching a web page – decisions made in CX design are done so in a more holistic, long-term and enduring way that creates long-term trust and good will. When done right, it drives differentiated value and results in one million touch points over the course of a lifetime that empowers meaningful bonds with customers.

Often measured by overall experience or likeliness to continue use and recommend to others, CX is ultimately about making people feel good. It’s the new dark horse consciously and subconsciously driving buyers’ decision-making. With so many options and more power than ever to choose, customers can be more discriminatory about who they spend their time with and reward their money to. Simply put, if they don’t like you, they probably won’t continue to support you. On the other hand, if you give them an experience that is personal, memorable, and connects with them on a deeper level, you’ll win more than just their wallet share.

Simply put, if they don’t like you, they probably won’t continue to support you.

What does good CX look like & entail?

Good CX aligns purpose with value, is consistent, builds trust, and adds ease and enjoyability to every touchpoint and stage. It creates lasting impressions that drive customers – and employees – to shout your praises from the rooftops.

 

Crafting experiences is less about designing and controlling every single interaction. That’s not possible. It’s more about crafting the conditions in which certain types of interactions – ones that result in a positive and feel good impression – can happen consistently and reliably over time. That type of work takes data, commitment and, perhaps most importantly, strong cross functional collaboration.

 

Also read: How a Powerful Brand Works as Insurance

It all starts with your customer

You can’t have a great customer experience without understanding your customer – not to only understand what they think, feel and value, but why they think, feel, and value the things they do. It’s this type of data gathering, analysis and segmentation that enables brands – despite the industry or legacy longevity – to personalize their entire customer journey to satisfy customers’ unique needs.

 

Using both qualitative and quantitative strategies to gather information and compiling psychographic profiles as well as demographic ones can give you powerful insights into what your customers value most. The energy you invest into getting to know and truly serve your customers is the energy they’ll give back to you.

Then it takes heart

CX encompasses both internal and external stakeholders – in other words, employees, and customers – and when crafting CX, brands must prioritize human needs before business needs and work from the inside out. That means taking a hard look at the culture and experience provided for employees and mending areas of friction, breakdown or inconsistency with the brand’s core values.

 

Also read: Why Customer Experience Can’t All Be Data Driven

 

Part of cultivating a positive culture is empowering cross functional collaboration, a crucial component of integrated success that directly impacts external CX. Each person and team must understand the goals and play towards the same result. Crafting operational CX is like conducting an orchestra – each player contributes to the final product. No singular team can be the designated driver of CX. It takes collaboration between different functions to provide a holistic experience from the surface to the core that stays true to the brand’s purpose and delivers consistent messaging and predictability across all touchpoints, channels, and platforms for the end user.

Core Messaging Framework | Tallwave

Never stop evolving

Just as people evolve and grow over time, so should CX. Doing so requires a commitment to establishing feedback loops and signals that tell you how you’re doing, as well as a commitment to iterating and improving the areas of your business that impact CX. These include your personas, content, design experiences, marketing channels, product developments, and your employee-customer interactions. Doing so will ensure you will continue to deliver unforgettable moments that increase loyalty, build community, keep competitors at bay, and plant seeds for future growth.

 

Investing in excellent customer experiences is just that, an investment, but if done right, it can create a snowball effect of success.

 

Also read: How Companies Are Adapting Their CX During COVID-19

Stats That Prove the Importance of CX

Many studies have been completed around customer experience and sentiment through the years. Here are a couple stats that prove just how much a good CX strategy can impact business:

  • A PWC survey found that 86% of consumers are willing to pay more for products and services that deliver positive customer experiences.
  • A Globe News Wire segment survey found that personalized experiences motivated 49% of buyers to make impulse purchases.
  • Out of 15,000 surveyed, PWC found that 1 in 3 consumers would abandon a brand they loved after just one bad experience; 92% would abandon after 2 or 3 bad experiences.
  • Customer service is dictating purchasing habits. A Salesforce survey reported that 73% of people who experience CX from one business raise the standards they hold other companies to. 

And with more and more companies investing money into improving their customer experiences each year (79% of surveyed executives told Simpler Media Group that improving digital CX is a very or extremely high priority for 2020 & on), some are already leading the way. Companies including Drift, AirBnB, and Lululemon continuously set the pace and expectation standards for their markets and are always looking for the next best way to personalize journeys to their customers’ needs.

The Bottom Line

Not every business or brand needs an altruistic mission but it does need to connect with its customers and be cognizant of how it makes customers feel at each stage in the user journey. “Experience is everything” is not just our rallying cry at Tallwave, it’s where we see consumers moving and where consequently brands need to move, as well. Companies who deliver exceptional experiences and make consumers feel good about their interactions will be the ones who become and remain relevant. It takes work and it requires continual commitment, but if the relationship with your customers matters to you as a brand, then it’s a commitment that should be fun and well worth it.

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