Why Should You Prioritize Customer Experience in 2021?

Customer experience is a term often spoken by marketers, and something top performing brands take incredibly seriously. It is the art of making a customer satisfied by exceeding their expectations in every interaction.

Brands that focus on customer experience tend to deliver high-quality service throughout their customers’ purchasing journeys, and this is something today’s consumers truly appreciate.

With so many options out there, customers are now turning their attention to brands that offer stunning experiences. And then we turn to these reliable companies again and again. If a brand offers a truly great experience, consumers can be so impressed that they can become brand advocates and help spread the word about the great experience they received.

With digital marketing getting more complex and competitive, marketers know they need to stay one step ahead to continue to attract new and existing customers. Customer experience is key to this.

In this article, we’ll cover why you should prioritize customer experience in 2021.

Great experiences drive better customer retention

A brand’s ability to retain its customers is crucial. It is often said that selling to a brand new customer costs 5 times more than selling to an existing customer. Therefore, for marketers to be truly successful, they need to ensure that the time and money they spend attracting a new customer is not wasted when they start interacting with a brand.

By providing a good customer experience that leaves the consumer satisfied and satisfied with their purchase, brands give them the best possible chance to resell to that customer. Selling to the same customer a second, third, fourth and fifth time will require a much smaller investment in marketing spend than the first purchase.

Customer retention is extremely important in determining the continued success of a brand because it is so closely linked to profits. Research by Frederick Reichheld of Bain & Company found that increasing retention rates by 5% results in a profit increase of 25-95%.

Loyal customers significantly increase revenue

The satisfaction levels that customers report have a direct impact on the amount they spend with certain companies. According to research published by Infoquest, a fully satisfied customer will spend on average 2.6 times more than a slightly satisfied customer. It really pays to make sure customers are happy.

When brands take steps to improve the customer experience, they immediately begin to improve those satisfaction levels. And income should increase as a result. That’s why companies are starting to invest significant time and money into customer experience improvements in their efforts to ensure that every buyer is completely satisfied with their experience.

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Happy customers become brand advocates

Word of mouth is a very powerful advertising tool, and the customer experience helps brands take advantage of it. When companies offer a great experience, they have a good chance of being recommended by their customers.

These recommendations are invaluable, especially when it comes to marketing to new customers. If a brand’s target market is in a younger age range, word of mouth advice becomes even more vital.

The younger population is wary of traditional advertising. 84 percent of millennials reported distrust of traditional ad campaigns and preferred word-of-mouth advice from acquaintances instead.

That’s why brands need to do their best to encourage their customers to spread their experience. And what better way to do this than to deliver an experience that customers can’t stop boasting about?

Expectations are high and they’re rising

Brands have been competing to impress customers for some time now. As a result, the experiences have gotten progressively better over the years.

With the advent of cutting-edge technology, great personalization software, and awe-inspiring analytics tools designed to keep customers informed about their deliveries, brands now have many options at their fingertips. This, of course, meant that the experiences got better and customers’ expectations increased in line with these developments.

For brands, recent advances in customer experience mean that Customer Experience must remain a priority, as there are real risks associated with standard shifts. Customer expectations are incredibly high when it comes to experiences, and companies that don’t meet those expectations risk being forgotten, while more customer-focused brands steal the show.

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Customer experience is key

Digital marketing encompasses a wide variety of disciplines, but customer experience is at the heart of every great digital strategy.

All great digital campaigns will involve a focus on the customer experience, as the experiences that stand out are crucial in determining the true results of those campaigns.

Get a digital strategy guide to get the most out of every marketing investment and ensure the continued success of campaigns.

Companies also need to think carefully about how customers experience their brands and what steps they can take to improve that experience.

From personalization and omni-channel experiences to providing best-in-class customer support for every query, there is a lot brands can do to improve their experiences and get the most out of every interaction.

By focusing on the customer experience, brands can begin to increase satisfaction levels, customer retention, and significantly increase profitability. Customer experience holds the key and that’s why it’s the most important part of digital marketing.

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