Why is Customer Experience so important?

Why is Customer Experience so important?

“Customer experience is the last source of sustainable differentiation and the new competitive battleground” — Tiffani Bova, Gartner Vice President and Distinguished Analyst

A positive customer experience is important in that customers are savvy and have the power choose between competing companies, which offer varying levels of customer service from poor to excellent. In fact, a recent study done in 2014, by card network provider American Experience found out of 10 countries, Singapore was ranked second – tied with the United States – in their willingness to pay more for excellent service. India ranked first. Nearly 80 per cent of consumers here were willing to spend more if they could get excellent service, 14 per cent more on average.

In today’s competitive environment, business owners must understand and invest in customer experience solutions. Here are the reasons why:

Customer Experience improves customer satisfaction. The goal is to create a consistent customer experience across all touch points that meets or exceeds the standard you have set in terms of what you want to deliver. At every touch point, you will ensure that the promise of a positive experience is being upheld and that the customer can experience a certain level of superior service: whether it is from sales, customer service, accounts or support.

It fosters repeat customers and customer loyalty.  Investing in increasing customer loyalty will still yield positive results. But you cannot fake loyalty: customer loyalty is built through great customer experiences that exceed expectations. A superior customer experience becomes a unique and valued offering for the consumer, who recognizes they may not have the same experience with a competitor and does not want to take that risk by switching.

Increase revenue and sales. Your customers are asking for a better experience. They show you they care with their wallets, not just their mouths. Another study, 2011 Customer Experience Impact Report, found that 86% of buyers said they would pay more for a better customer experience. Again, customers value good service and they are prepared to pay for it.