Customer Experience, User Experience and Business Growth
Customer experience(CX) and user experience(UX) are integral for success in businesses all across the world. Companies are beginning to understand that if customers have a bad experience interacting with their product, then there is a big chance that they may not return.
Nowadays, users have many different options to choose from when buying a product and research has shown that they tend to prefer those companies with which they have had the best experience.
CX vs UX
User Experience (UX) is what drives a customer or user to use a product. It basically deals with how people interact with your product and the kind of experience they receive from that interaction. UX is typically measured in: success rate, error rate, time taken to complete a task, abandonment rate and (in digital) clicks to completion.
A good digital UX gives a user/customer the ability to:
- Find information on a website quickly and easily
- Complete the desired task with ease
- Search Web pages with ease
Customer Experience (CX) on the other hand, is how the interaction with the product makes them feel. CX comprises all the interactions a person has with your brand. It is typically measured in: overall experience, likelihood to recommend to others and likelihood to continue the use of a product. Basically, UX is a subset of the broader CX set as CX contains many aspects outside of the product.
Good CX gives a user/customer the ability to:
- Have a pleasant, professional, helpful interaction with company representatives and an experience they remember.
- Feel that the overall experience with that organization/company and everything associated with it has been generally positive.
10 ways CX and UX drives revenue growth
Customer experience and user experience have become a prime element of business and marketing strategy. They have been proven to be critical for increasing profit growth and revenue growth. Some of the key ways that CX and UX drives revenue growth are:
1. Attract New Customers
Customers want to buy products from companies that truly care about them. The way the use of good CX and UX attracts new customers is it becomes an excellent form of public relations that shows users that you genuinely care about their thoughts and opinions regarding a product.
2. Customers Remain Loyal
When customers are satisfied doing business with you, there’s no reason for them to go anywhere else. Listening and catering to their queries and offering exceptional service along with benefits for loyal customers ensures they will keep coming back to your product.
3. Customers Become Advocates
One thing that is better than having a loyal customer is having those loyal customers become advocates of your product. Word of mouth advice regarding a product is one the most trusted and acted upon in the marketing industry. When that happens, CX and UX drives revenue growth by increasing the size of your customer base.
4. Raise Net Promoter Score
Net Promoter Score is a tool that measures customer experience and predicts growth in your business. So clearly, focusing on customer experience can raise this score, which is used by management and consumers alike to judge your business.
5. Boosts Chance of Repurchase
No product or service lasts forever. Therefore when the time comes to replace or renew your product, customers will remember the positive experience they had with your company and more importantly your product. It will even inspire them to make the same purchase again.
6. Customers Spend More
According to a study conducted by PwC, 42 percent of consumers “would pay more for a friendly, welcoming experience.” That gives you an edge over your competitors, but they’re also more likely to spend more during each visit, creating a second financial boost.
7. Control Costs
Great customer experience comes in many forms. But it doesn’t require a heavy financial investment. In fact, companies can provide better customer care while reducing your overall costs by increasing self-service and adopting popular, low-cost service channels like SMS,
8. Raise Employee Satisfaction
Just about everyone wants to feel like they’re doing work that matters. That feeling comes more easily when customers are happy with your products or service. So when customers are satisfied, employees become more satisfied, too.
9. Improve Your Brand Image
Branding is more important today than ever before. Even search engines take it into account. Eric Schmidt, former CEO of Google, once said, “Brands are how you sort out the cesspool.” By creating a good impression of your brand, customers learn to come to you first, which boosts revenue, reduces costs to acquire customers and can improve your position on SEO and other marketing channels.
10. Prepare for the Future
Customer experience and user experience are always changing to match new consumer expectations. But by making CX and UX a priority, you can continually stay in touch with what people want. And by learning to adapt to new customer service channels, you can learn to quickly adopt new channels and meet expectations as they arise.
More and more companies are developing and perfecting their approach to CX and UX as they understand that if customers have a bad experience interacting with their product, they may never buy their company’s product again. A bad CX or UX can be just as bad for business as having a bad product.