What is Customer Experience? An Ultimate Guide

Customer Experience encompasses all the actions a business, or brand takes to provide outstanding Experiences, value, and growth for its Customers. In today’s world, the way a business or brand serves its Customers is just as crucial as the Products and Services it offers. 

Table of Contents 

1) What is Customer Experience? 

2) Importance of Customer Experience 

3) How to Measure Customer Experience? 

4) Strategies to Enhance Customer Experience 

5) What makes a good Customer Experience? 

6) What makes a bad Customer Experience? 

7) Customer Experience Management Tools 

8) Conclusion 

What is Customer Experience? 

Customer Experience (CX) is the overall Experience of the Customer with the business or brand after interaction. It is the total number of interactions the Customer has with the business or brand from the point they have found the brand to the date of purchase. 

Customer Experience is essential because it gives an overview of the business or brand from the Customer's point of perception. It is sometimes difficult for the brand to control because different Customers react in different unpredictable ways. They can access and optimise the interaction with the Customer to improve the things they are lagging in.
 

  

Importance of Customer Experience 

Customer Experience (CX) is important because it gives reality checks to the business or brand from the interactions with Customers. No matter how small business has been made between the Customer and brand, it has the power to build a good or damage the relationship with the Customer.  

1) Increase Customer Loyalty: When good trust is built with the Customer there is a much more possibility of them returning for the purchase.  

2) Better Customer Advocacy: The Customers that are loyal to the brand are more likely to become brand advocates. They will share their good Experiences with friends, family and colleagues which will help in growing the brand or business faster.  

3) Long Customer Retention: When the Customer has a good Experience with a brand, then the brand or business will be the topmost priority for them when they plan to buy new things.  

How to Measure Customer Experience? 

Different metrics are necessary for measuring the Customer Experience. Some of the points to take in mind while thinking of measuring Customer Experience are as follows:  

1) Review Customer Satisfaction Surveys 

Reviewing the Customer Satisfaction Surveys will help in providing insights into the Customer Experience with your business or brand, Product or Service. Analysing the Customer's feedback is one of the great ways to understand the Experience of Customer and help to know the needs and demands of the Customers from the brand or business.    

2) Assess Customer Churn Rates and Underlying Causes 

Always in a business or a brand low churn rates are seen as a sign of Customer satisfaction and their loyalty towards business. To precisely assess a churn rate, it is essential to compare it with the same industry or the market. The factors to consider are target audience, pricing, Services and Customer satisfaction. 

3) Collect Feedback on Product or Feature Improvements 

Asking the Customers about their individual experiences with the business or brand during the interactions and then this feedback will help in improving the things that are required.  

There are different ways that can be used to collect the customer’s feedback, such as through emails, phone calls, or surveys. The feedback will help in the areas that need to be improved for better Customer satisfaction.  

4) Examine Trends in Customer Support Tickets 

It consists of an examination of support tickets, which are Customer complaints or requests for assistance, to identify the patterns and trends. The aim is to improve Customer Service, streamline the support process, and identify areas for improvement in Products or Services. 

Strategies to Enhance Customer Experience 

These are some strategies to enhance the Customer Experience (CX):  

1) Analyse Session Replays of Frustrated Users 

Analysing the session replays of the frustrated users will help get information about the trouble that is caused to the customer. Filtering the session replays based on characteristics like new or returning customers and trying to find the behaviour pattern of the user.   

Sometimes the issues are about the errors and bugs that are found in the interactions with Customers when they are visiting the brand or business. So, the essential thing is to interact with the users and Customers based on the session replays which will help in solving and resolving the issues.    

2) Identify Pages with High Drop-off Rates 

Analyse the whole Journey of the visitor or the Customer, which will help in identifying the drop rates and the causes. Watching the session replays of the users who didn't make it to the next step and contacting them about their problem. Uncover the main points of lagging in the user Journey.   

3) Conduct User Interviews for Deeper Insights 

Conducting user interviews is the best way to understand the Customers for deeper insight. This will make a direct connection with Customers to know their needs and how they think and feel about the brand or business. This will help in the development of new things, and their direct feedback will really shape the future of the Products.  

4) Capture Real-time Feedback 

Capturing the real time feedback of the Customers will make sure about their Experience with the brand website. Explore how they feel when interacting with something they love about the brand or business and after that review their feedback to make the Experience better.  

5) Test Improvements to Gauge CX Impact 

There are various methods to test improvements to gauge Customer Experience (CX) impact, which are mentioned below: 

1) Surveys: Conduct surveys before and after the interaction to determine the Experience and satisfaction of the Customer. 

2) Anlysing Reviews: Monitor the reviews and session replays of the Customers to analyse the area of interests, trends and pain points. 

3) First Response Time (FRT): Measure the time taken by the Customer support team to review and reply to user's request. 

6) Understand User Behaviour on Your Site 

To understand the behaviour of the users on sites, user behaviour analytics (UBA) are used to gather and analyse the data and the interactions. This will help in identifying the behaviour of the users, areas that need to be improved and making data-driven decisions. Here are some ways to understand user behaviour: 

1) Heat Maps 

2) Session Recording  

3) Surveys 

4) Feedback 

5) User Journey Times 

7) Share Your Findings With the Team 

The data that is collected from the users and Customers feedback and analysing the information that is gathered needs to be shared with the team. This will give them the right path to development and the areas that need to be improved.  

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What Makes a Good Customer Experience? 

Your business or the brand is unique, and so are your Customers, so there is no universal checklist to follow for good Customer Experience, but some of the common principles that can adapt for good CX are: 

1) Listening to the Customers should be the top priority. 

2) Use the Customer feedback and reviews to develop an in depth understanding of your Customers. 

3) Implementing a system for monitoring and regularly collecting, analysing and acting on Customer feedback. 

4) Reduce friction and solve Customers' problems and the challenges they are facing with the business or brands. 

5) Customers should be aware of the process that is going on and should not be kept in the dark. 

What Makes a bad Customer Experience? 

In a simple definition, bad Customer Experience (CX) is the behaviour that fails to meet the needs and expectations of the Customers. The expectations of the Customers differ from business to business. Majorly the main causes are: 

1) Rude Behaviour 

2) Unwarranted Delays 

3) Poor Communication 

4) Rude Behaviour of employees 

5) Unresolved Issues 

6) Employees do understand Customer needs   

It’s just about thought the last you were frustrated as a Customer. Basically, these are the main reasons and issues for the bad Customer Experience.  

Customer Experience Management Tools 

The Customer Experience Management Tools are as follows: 

1) Tealeaf
 

Tealeaf is a sophisticated data interpretation engine designed to monitor and evaluate online Customer engagement and website interactions. Leveraging artificial intelligence (AI), it identifies recurring issues and offers deep insights to help you address them effectively. Regular updates ensure your team can promptly fix bugs and glitches. 

Key features include real-time data processing, intelligent data management, and seamless integration with other tools in your tech stack, making Tealeaf an excellent choice for enhancing Customer Experience (CX) in companies. 

Price: Pricing is available upon request. 

2) Nice
 

Optimum Feedback Management provides a summary of your complete Customer Experience. It does this by reviewing direct feedback, indirect feedback, all in one report. This gives a complete picture of the Customer Experience from the Customer’s point of view and how it relates to business impact. 

Price: Pricing is available upon request. 

3) Infobip
 

Infobip is a worldwide leader in omnichannel communication, and the cloud communication platform enables businesses to build personalised Customer Experiences (CX) on any channel including WhatsApp, Facebook, Instagram and more.   

With an employee involvement solution, chatbot building platform, and cloud centre, the Infobip platform makes it simple to fascinate, notify, and support Customers at each stage of their journey. 

Price: Pricing is available upon request. 

4) Podium
 

Podium is a simple, straightforward solution, for the businesses or brands looking to enhance their Customer Experience. It has features like real time chat, campaigns, and online payments, all which nurture new visitors to the site, allow them to communicate faster, and increase revenue. It also has feedback options for surveying Customers using NPS. 

Price: The essentials plan costs 189 GBP monthly. Standard plans cost 310 GBP a month per user. Professional plans cost 454 GBP monthly. 

5) Birdeye
 

Birdeye is reputation management software, which means it is specially designed for managing online reviews across many channels. Online reviews are often the first-place potential Customers look in the attention stage, and Birdeye helps to get more positive reviews quickly. 

It consists of tools that automatically activate Customer review requests, auto-reply to Customers, and subsequently share reviews on the website. 

Price: Pricing is available upon request. 

Conclusion 

Customer Experience is an essential aspect of modern business strategy. It consists of every interaction a customer has with a brand, shaping their overall insight and satisfaction. By prioritising exceptional Customer Experiences, businesses can sustain loyalty, boost growth, and differentiate themselves in a competitive market. Eventually, delivering outstanding Customer Experiences is not just beneficial but essential for long-term success. 

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