April 11, 2022
25 min read

Why Customer Experience is Vital to Company Success

Why Customer Experience is Vital to Company Success

Consumers’ view of your brand directly impacts your company’s bottom line: revenue. After someone buys your product there are three actions they can take regarding your business. 1. They loved your product/service and will likely buy more. 2. They weren't totally satisfied but didn’t hate it and it’s a fifty-fifty chance they buy it again. 3. They definitely did not like the product/service and will not buy it again.

The experience a customer has with a brand plays a crucial role in shaping that customer’s perception of the company. Creating a positive brand in the mind of consumers is vital to business growth.

Customers Hold the Power, Not Businesses

Before the online business world blew up, consumers shopped at whatever stores were closest to them. Nowadays, consumers have endless choices of where they can shop. Because of online shopping, competition is no longer bound by location. The buying power has shifted significantly from businesses to consumers. Consistent communication across your brand is more important now than ever before.

If a customer doesn’t enjoy their experience or product from a specific brand, they have no reason to return to that brand and can easily find another.

Satisfied Customers Come Back

People and products are two aspects of a company that consumers engage with. First off, they come to your company because you provide something they want. If there are any issues in the buying process, they will likely reach out to a customer service representative. The customer service representative now has the opportunity to create an experience that exceeds the customer’s expectations.

If this relationship experiences negative communication, the customer will be dissatisfied. They will likely not purchase the product. However, if the customer had a positive experience with the customer service representative and loved the product, they will likely come back, resulting in brand loyalty.

Satisfied customers remain loyal, contributing 14 times as much revenue as a dissatisfied customer. Without loyal customers your business will be spending marketing dollars on almost every purchase. This is not an efficient use of the marketing department's budget or time. It’s better to blow a customer away the first time they purchase from you, so that it takes little work to keep them coming back.

Satisfied Customers Share With Their Friends

Regardless of whether the experience was a positive or negative one, consumers share information with their friends. This can start a chain of loyal customers or consumers who are boycotting your brand: all because of one person’s story. This is why each customer that comes to your brand needs to be provided with an excellent experience. This communication between consumers is called word of mouth marketing.

Loyal customers are the best marketers because they are essentially free! It’s a natural form of an ambassador system.

In Summary

Companies need to create a consistent consumer experience across all brand touchpoints. They should exceed customers’ expectations, and provide continual engagement to understand what their customers’ thoughts are. This allows them to make the necessary adjustments that will improve customers’ experiences each time they come back.