In the Adobe Digital Trends report, marketers identified “optimizing the customer experience” as the most exciting business opportunity in 2020. Your customers expect a positive experience every time they interact with your brand. If you can meet and exceed their expectations, you can differentiate your brand, increase customer retention, and boost revenue. This guide will reveal the benefits of customer experience marketing and the steps you can take to win the customer experience battle.
Let’s get started.
What Is Customer Experience Marketing?
Customer experience marketing is a brand strategy to become more customer-centric and put your customers’ needs at the center of your marketing efforts.
In today’s competitive marketplace, consumers have more power than ever before.
The internet provides access to unlimited choice and information. A prospect can pick up their smartphone and find 10 companies providing the same products and services as you.
Providing a great customer experience helps differentiate your brand and provides a reason for people to do business with you.
When you offer value at every touchpoint, customers are more likely to buy from you, be loyal to your brand, become advocates, and spread positive word of mouth.
The Benefit of Customer Experience Marketing
Delighting your customers with a remarkable customer experience offers two powerful advantages:
Greater Brand Loyalty
Alongside a great product, consumers expect brands to provide a positive experience through customer service, marketing channels, and in-store and online shopping experiences.
A great customer experience is the foundation for customer retention and increased loyalty.
According to Smart Insights, 74% of consumers say that customer experience impacts their willingness to be loyal to a brand:
40% of consumers are also willing to pay more if a brand provides a better customer experience.
Customer experience is often where brand loyalty is won and lost.
A study by Microsoft revealed that 96% of people value customer service as an important factor in their choice of loyalty to a brand.
Customer experience pays – 84% of companies that improve customer experience report an increase in revenue.
If you deliver value throughout the buyer’s journey, you build a relationship with prospects and create bias. Then, when a prospect is ready to make a purchasing decision, the bias encourages them to choose you.
Your customers buy from you again and again, becoming advocates for your brand.
Customer experience is vital to customer retention and revenue growth.
According to Forrester, brands that deliver a superior customer experience bring in 5.7x more revenue than companies that lag behind in customer experience.
Best Practices for Customer Experience Marketing
Here are 7 ways you can improve customer experience, boost customer retention, and drive revenue.
Know What the Ideal Customer Experience Looks Like
Before you can optimize your marketing channels and customer service initiatives, you need to define what the ideal customer experience looks like for your company.
You need to know the touchpoints that customers go through as they navigate the stages of the buyer’s journey.
After defining the steps buyers go through, you can plan the types of experience you want to deliver at each touchpoint.
Be True to Your Word
After a single bad experience with a brand, 80% of consumers would rather buy from another company. A sure-fire way to annoy your customers is to overpromise and underdeliver.
For example, if you promise next-day delivery, make sure that the product arrives on time.
Communication is key. If something happens that disrupts your ability to meet customer expectations, communicate the issue and your solution as early as possible.
Go the Extra Mile
The companies that lead the way in customer experience empower staff to go above and beyond.
That could mean providing the data and insights customer service representatives need to deliver a personalized experience or providing the flexibility and resources for staff to resolve issues quickly and efficiently.
For example, when a customer needs to speak to a customer service representative, they value how easy it is to resolve the problem as the most important aspect of the call.
Equipping your staff with the resources they need to delight customers is crucial for customer experience.
Be the Best at Something and the Worst at Nothing
One of the biggest mistakes companies make is trying to be an industry leader in every aspect of the customer experience.
This typically results in an uneven and overstretched strategy that fails.
By choosing one or two elements of the customer experience and being the best in that area, you can differentiate your brand and become memorable.
You need to deliver a “good” experience across every touchpoint and then do a couple of things better than anyone else.
Have a Defined Strategy for Customer Service
Even if you’re a small company without an internal customer service department, having a detailed strategy helps you deliver a consistent customer experience.
This can involve procedures to deal with customer complaints and tracking and responding to customer reviews online.
According to ReviewTrackers, 52% of people expect a brand to respond to their online review within seven days.
You can enhance your brand reputation by responding promptly to positive and negative reviews.
Reviews also provide insights into how you can improve the customer experience. Take on board any criticisms and try to improve the service you offer.
Collecting customer feedback is crucial to improving the customer experience.
Like any other marketing initiative, customer experience marketing needs to be measured to see what works and what needs improvement.
You can keep raising the bar by collecting feedback and using those insights to optimize the customer experience.
When you stop listening to your customers, you leave yourself open to disruption from a competitor who provides a better experience.
Be More Than a Company
Customer experience is closely related to brand identity. The experience you provide to your customers is a projection of your brand values.
You can use customer experience as the foundation for your unique selling point (USP).
For example, Amazon’s USP is to be the world’s most customer-centric company through customer service.
The e-commerce giant puts customer experience at the center of its USP.
Customer experience is an opportunity to make your brand different and better than your competitors.
When your customers are happy, they spend more and spread the word about your products and services.
Use the above tips to enhance the customer experience at your company.
If you need help seeing the bigger picture and leveraging customer experience as a competitive advantage, get in touch with the marketing experts here at Ogno.