IMPLICATIONS FOR BRANDS
Alienating Your Customer Base
With customer expectations continually rising, brands are finding it more challenging to meet and exceed these expectations. The decline in CX quality suggests that many brands are struggling to keep pace with changes in consumer behavior and preferences.
Revenue Impact
Forrester’s research indicates that brands that structure their business processes around consumer needs can achieve 41% faster revenue growth, 49% faster profit growth, and 51% better customer retention than non-customer-focused brands. Those that fail to prioritize CX may face stagnant or declining revenues. This relationship emphasizes the financial implications of poor CX performance.
Customer Retention and Acquisition Costs
Declining CX quality can erode brand loyalty, leading to higher churn rates. When customers leave, the cost of acquiring new customers increases, as attracting new customers typically costs five times more than retaining existing ones. Improved CX can reduce churn and lower customer acquisition costs, making it a critical factor in maintaining profitability.
Impact on Brand Reputation
A disconnected customer base can significantly harm a brand’s reputation. Negative word-of-mouth and poor online reviews can deter potential customers. In contrast, a strong CX can turn satisfied customers into brand advocates, ultimately enhancing brand reputation and attracting new clientele through positive referrals.
STRATEGIES FOR ENHANCING CUSTOMER EXPERIENCE
Prioritize Measuring CX Performance
For brands, measuring CX performance should be a top priority. Implementing robust CX measurement frameworks like Net Promoter Score (NPS), Customer Satisfaction (CSAT) scores, and Customer Effort Score (CES) ensures that investments in CX are aligned with business goals and driving the desired outcomes. Using surveys, reviews, and other forms of customer feedback to gather qualitative data are critical components as well. Regularly tracking these metrics allows brands to identify areas of improvement and make data-driven decisions.
Adopt a Customer-Centric Approach
Brands must place the customer at the center of their decision-making processes. This includes understanding customer needs through data-driven insights and designing experiences that align with these expectations. A customer-centric approach not only improves satisfaction but also enhances loyalty and retention rates.
Enhance Employee Training and Engagement
Employees play a critical role in delivering exceptional customer — and ultimately — brand experiences. Investing in employee training programs and fostering a culture of engagement can significantly enhance the quality of each brand interaction. Engaged employees are more likely to provide a higher level service, leading to a higher level of customer satisfaction.
Select and Invest in the Right Tech Partners
The array of technology providers in today’s marketing ecosystem is nothing if not overwhelming. By conducting an overall audit and technology assessment of your customer journey, touchpoints and channels, you’ll have better insights into what the potential gaps are. Understanding where those areas of friction reside can help with selecting the right technologies and partners that will improve and enhance your overall experiences throughout the customer journey.
Brands today have an opportunity to rethink their approach to customer experience and set new benchmarks in their industries. Success will come to those who go beyond addressing immediate issues and instead focus on enhancing their overall customer experience in meaningful ways. The future of customer experience is more than just keeping up; it’s about making every customer interaction more meaningful, turning everyday customers into brand advocates, and ultimately, driving growth.
At Salient, we’re passionate about delivering exceptional customer experiences — no matter the stage or level of maturity your brand is in on its customer experience journey, we’re here to help.
