Providing a good customer experience (CX) isn’t just about getting positive reviews online—it’s about creating a relationship with your customer. It’s also about a better bottom line, which is harder to achieve these days as consumer spend slows.
Here are five charts on how and why you should be thinking about CX, and who is responsible for it.
Some 71% of CX decision-makers worldwide say that a broken customer service experience damages a company’s ability to generate revenues (per Forrester Consulting), but less than half (48%) of US executives plan to invest in it this year, according to an August 2022 PwC survey.
Instead, the majority of executives will invest in digital transformation, IT, and cybersecurity and privacy. Though these areas may be more time-sensitive, it’s important that leaders recognize how important CX can be to staying in the black.
But priorities may have shifted since August as inflation puts more pressure on consumer wallets, forcing retailers to get creative to keep customers loyal. One way to promote loyalty? A good CX.
To talk the talk, you’ve gotta walk the walk. This means prioritizing or creating a strategy, which 43% of marketers worldwide plan to do this year, according to Ascend2.
Other ways that marketers plan to improve the CX include internal alignment, collecting and using the right data, and making sure the tech stack is right.
Data, digitalization, and tech are very important to the CX, noted our analyst Patty Soltis in the “Dialing in Your CX Leadership Strategy” report. “Data provides valuable customer feedback, helping to improve the digital-first interactions customers want. That, in turn, drives the adoption of AI and automation and helps create the right mix of self-service and human-enabled engagement.”
According to most marketers, a “good” CX comes down to simply solving the problem at hand. But there’s a lot more that goes into it, including listening to the customers themselves on what’s important—and then doing something about it.
“That feedback loop from customers is important,” said Suzy Davidkhanian on a “Behind the Numbers: Reimagining Retail” podcast. “If you’re asking for feedback and don’t act against it, don’t expect customers to keep giving it to you.”
Marketers and customers align on what’s important to the CX, with a few differences.
To customers, it’s not just enough that they get an answer to their question; it’s got to be quick and easy for them ask it.
Another area for improvement? Providing customers multiple channels to reach out.
Everyone has a hand in the customer journey, which means each department has a responsibility to improve the customer journey.
Ultimately, improving the CX isn’t just about hiring a CX team. It requires a consistent, comprehensive vision of what the CX entails and an enterprisewide duty to follow through on it.
This means connecting the CX strategy to the overall business strategy and aligning on metrics, goals, and responsibilities. It’s also about making the strategic, tactical, and soft skills necessary for success clear.
Why it matters: Investing in the CX is a smart business strategy. A good CX leads to a happy customer, higher loyalty, and, eventually, higher revenues. Everybody wins.
This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.