Customer Experience: What is it and why does it matter?

Customer experience is just as important as product or service for any brand.

As a consumer, if you think of the last time you interacted with a company, you’ll likely be able to remember whether your experience was a positive or a negative one.

And if you think of a brand, you’ll also more than likely have a perception of what this brand means to you due to your own collective experiences; and sometimes, the experiences of other customers too.

What is Customer Experience?

Customer experience is defined as the interaction between the customer and brand across the duration of their relationship.

And, as you can imagine, the length of said-relationship really is fully dependent on the type of experience the customer receives.

Ultimately, customer experience is the long-lasting impression a brand leaves a customer with.

 

Why it Matters

This long-lasting impression is especially important for the longevity of a business and its success.

In fact, according to research by Salesforce, 84% of customers felt that the customer experience is as important as the products/services on offer, and a further 67% of customers say that their standards for good customer experiences are higher than they’ve ever been before.

As Maya Angelou once wisely said: “People remember experiences, not things”. This doesn’t just apply to our personal experiences, it applies to business as well.

 

How do we Measure CX?

So, how can we improve it?

Well, to be able to improve, you first need to know what you’re working with- and the best way to do that is to measure where you’re at now. This will also allow you to track ROI following any changes or enhancements to the customer experience later on.

If you outsource your customer contact, the team should have in-house data analysis and management intelligence teams working alongside the customer service department to provide up-to-date information, and they’ll be able to conduct customer surveys and research on your behalf.

Here are some of the most popular ways customer experience can be measured:

 

CSAT (Customer Satisfaction)-

i.e. ‘How would you rate your overall satisfaction with [insert goods/service]?’

Respondents use a scale between 1 (very unsatisfied) to 5 (very satisfied).

The two highest ratings (4 and 5) calculate a percentage score with 100% being total customer satisfaction and 0% being total customer dissatisfaction.

 

CES (Customer Effort Score)-

CES surveys typically ask the question: “on a scale of ‘very easy’ to ‘very difficult’, how easy was it to interact with [insert company name]?.” The idea is that customers are more loyal to a product or service that is easier to use.

 

NPS (Net Promoter Score)-

NPS is a customer satisfaction benchmark that measures how likely your customers are to recommend your brand to friends or family.

NPS is different from other benchmarks, such as customer satisfaction score or customer effort score, in that it measures a customer’s overall sentiment about a brand, as opposed to their perception of a singular interaction or purchase.

 

If you need help with your customer experience, then simply get in touch.