Want to know everything about Customer Experience?
Below you will find all information about what customer experience entails and why customer experience is important, with many tips on how you can not only measure customer experience, but also improve it. We also explore which tools you need to put this into practice.
Customer Experience is the experience of your customer when they engage with you, their resulting emotion. It is about how your customers experience the culture, behaviour, people, communication, products, and services of your brand and organization during their customer journey. By offering a unique experience to each customer, you distinguish yourself from the competition.
Why is Customer Experience important?
In markets with increasing competition, it becomes increasingly difficult to distinguish yourself based on, for example, price, product, or service alone. You make the difference by offering a unique customer experience. How does customer experience impact your organization, product, or service? Although 80% of managers in organizations think they offer an excellent experience, only 8% of their customers agree. Customer Experience Management was created through these developments in the market. If you implement a proactive Customer Experience Management (CXM) program, you prevent these dismal percentages from being applicable to your organization.
Everything revolves around winning the heart of the customer, with the aim of helping a customer to become a loyal customer. A customer who is loyal to your organization and who recommends your company, brand, product or service to others. The distinctive experience of your customers must match your brand and brand promise. That's how you build the brand. Shaun Smith, one of the gurus in the field of Customer Experience Management, says:
"The experience you deliver to your customers every day, through any contact, directly or indirectly, increases or decreases the value of your brand."Shaun Smith, one of the gurus in the field of Customer Experience Management
Traditional business no longer exists with customers who are becoming more and more articulate and who express this through various public channels, such as social media and review sites. Customers are gaining more insight and the market is becoming more transparent. You therefore no longer have to make a distinction based on price and product. Service and customer experience is where your opportunities are to distinguish yourself as a brand.
Also check the blog 'Why customer focus is not enough for optimal customer experience'.
The benefits of Customer Experience
As a customer-oriented organization, you should focus on improving the customer experience. Basing this on a sophisticated customer experience strategy provides you a lot as an organization, such as:
- More satisfied customers
- More loyal customers
- More ambassadors
- Better positive online image
- Lower failure costs
How to measure Customer Experience?
Customer Experience can be measured in different ways, depending on what you want to know from the customer and at what time in his customer journey. If you perform multiple measurements, you will get insight per 'process (step)' into where your strengths lie and which points you can improve upon further. Depending on which objective you want to measure, you will find different methods / metrics.
Which Customer Experience KPIs are there?
In practice, we see that the deployment of Customer Experience KPIs and customer experience analytics is most successfully implemented when choosing a single KPI. Everyone within the organization is directed by, for example, NPS, CES, or CSAT.
Net Promoter Score (NPS)
NPS measures the loyalty of your customer via the recommendation question: 'How likely is it that you would recommend product / service / company X to friends or family?' The NPS is the most used KPI for measuring Customer Experience. This gives you a quick insight into how loyal your customers are to your brand or organization.
But NPS doesn’t work for complaints, how do you resolve this? You can read the answer in this blog.
Customer Effort Score (CES)
CES gives you insight into how your customers have experienced a service via the question: "How much effort did you have to do to get your question fully answered?" With CES, you can measure various contact moments. For every step in which the customer has contact with your company, you see what he or she thinks about this contact. CES shows how you perform here and you can manage and improve contact moments based on this.
Customer Satisfaction Score (CSAT)
CSAT measures the satisfaction of your customers regarding purchased products or services. With the CSAT, the customer is asked to rate your product or service in the form of a reported mark on a scale of 1 to 10. The CSAT is mainly used when asking for a recommendation is not a logical question or when asking for a recommendation is not appropriate, for example questions about healthcare institutions or questions about the government.
Achieve more with Experience Management
If you really want to optimize your Customer Experience, you will now have to focus not only on the external Customer Experience, but also on your internal organization and employees. After all, happy employees also mean happy customers. And to make and keep your employees and your customers happy, the foundation of your organization must be in order. Think of delivering the best quality and service and promoting a healthy business culture.
With only ‘Customer Experience Management (CEM)’ , you can no longer distinguish yourself as a brand and organization. 'Experience Management', on the other hand, looks at customer orientation and what this yields from 3 pillars as a holistic whole:
- Voice of Customer (VoC)
- Voice of Employee (VoE)
- Voice of Business (VoB)
In the e-book 'The power of Experience Management', you will find that all background information and all developments that influence this holistic view of Customer Experience are described.
How do you improve Customer Experience?
Listen to the stories of your customers!
Ask your customers why they have given a certain score in an open answer field. After all, a story says so much more than just a number. From this, you can derive much more to optimize the customer experience.
Measure, analyse, activate and motivate continuously
Measure feedback continuously and automatically (Closed Loop Feedback). Analyse continuously, set priorities, and carry out follow-up actions that motivate your employees and provide your customers with their needs.
Customer Experience Software
As a Customer Experience manager, you have a challenging task. How do you keep track of all data, customer, and employee feedback processes? How do you convert all that data and feedback into the right insights for the organization? How do you ensure that you take the step from measuring to improving?
By automating your CX processes, you save a lot of time and you can focus on what really matters. With innovative CX programs, questionnaires, and analyses, you get the insights you need. Smart and automated reports on different devices ensure that you and your colleagues can make customer-oriented decisions and you can take the step from measuring to improving.
Also check out the blog 'Three tips to look critically at your Customer Experience Management system’.
Essential features of Customer Experience Software
Automated and continuous research
Set up your system in such a way that you automatically and continuously receive the right insights into customer loyalty and the involvement of your employees. Make the right decisions for a customer-oriented organization.
Collecting smart data via all channels
Customers are on many channels and platforms. Use the medium that fits them and make giving feedback as easy as possible (via multiple devices, mobile app iOS, Android, tablet, smartphone, desktop).
Ask as few questions as possible
Do not ask your customers and employees too many questions and do not ask unnecessary questions. You do this by drawing up short and powerful questionnaires (preferably based on predetermined KPIs). Make sure you find out why they give a certain score.
Label open answers
Find out exactly why they gave an answer by asking customers to categorize their answers (root cause analysis).
Customer story central
Why did the customer or employee give that score? Set up your software in such a way that you gain insight by supporting scores with real stories and emotions. Use open answers or 'storytelling' as your strength.
Real time reporting
Have your system update the reports in real time with the latest data. In the fast-paced world we live in today, you cannot get away with outdated data.
Activate fans and promoters
Ask customers at the same time for feedback and a review or social media message via one email and get a grip on your online reputation.
Share compliments directly and automatically through the software to the right employees. This is proven to be motivating.
Read here how Allianz bring customer insights to life at employee level.
Customer Experience blogs
Inspiring each other and sharing knowledge. Connecting people and discovering new opportunities. Read all blogs about Customer Experienceart_track CX blogs
Customer Experience downloads
Check our e-books and whitepapers and learn all about customer experience!chrome_reader_mode CX Downloads
Questions? Contact us
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