Why Customer Experience Is The Most Important Part of Digital Marketing
Customer experience is a term that’s often talked about by marketing professionals, and it’s something that top performing brands take incredibly seriously. It’s the art of making sure a customer is satisfied, by exceeding their expectations at every interaction.
Brands that focus on customer experience tend to provide high quality service throughout their customers’ buying journeys — something that today’s consumers really appreciate.
With so much choice out there, customers are now turning their attention to the brands that offer standout experiences. And then returning to these trusted companies time and time again. If a brand offers a truly stellar experience, consumers might even be so impressed that they become brand advocates, helping to spread the word about the great experience they’ve received.
With digital marketing becoming more complex and competitive, marketers know they have to stay one step ahead to ensure that they continue to attract the attention of new and existing customers. Customer experience is key to this.
In this article, we’ll cover why you should prioritize customer experience in 2021.
Great experiences lead to better customer retention
The ability of a brand to retain its customers is crucial. It’s often said that it costs up to 5x more to sell to a brand new customer, than it does to sell to an existing one. So for marketers to really excel, they need to ensure that the time and money spent attracting the attention of a new customer doesn’t go to waste once they start interacting with a brand.
By providing a good customer experience that leaves a consumer satisfied and pleased with their purchase, brands give themselves the best possible chance of selling to that customer again. And the second, third, fourth and fifth times of selling to that same customer will require a far smaller investment, in terms of marketing spend, than the initial purchase.
Customer retention is hugely important in determining the ongoing success of a brand, because it’s so closely linked with profits. Research by Frederick Reichheld of Bain & Company found that increasing retention rates by 5% results in a profit boost of between 25-95%.
Loyal customers boost revenue significantly
The levels of satisfaction that customers report have a direct impact on the amount that they spend with particular companies. A totally satisfied customer will spend on average 2.6 times more than a somewhat satisfied customer, according to research published by Infoquest. It really does pay to make sure customers are happy.
When brands take steps to improve their customer experience, they immediately start to improve these satisfaction levels. And revenue should rise as a result. Companies are therefore beginning to invest considerable amounts of time and money into customer experience improvements, in their efforts to ensure that every buyer is completely satisfied with their experience.
Happy customers become brand advocates
Word-of-mouth is a hugely powerful advertising tool, and customer experience helps brands to take advantage of it. When companies provide a great experience, they stand a good chance of being recommended by their customers.
These recommendations are invaluable, particularly when it comes to marketing to new customers. If a brand’s target market happens to be in a younger age bracket, word-of-mouth recommendations become even more vital.
Younger demographics are famously wary of traditional advertising. A whopping 84% of millennials have reported a distrust for traditional advertising campaigns, favouring word of mouth recommendations from those they know instead.
So brands need to do all they can to encourage their customers to spread the word about their experience. And what better way to do that, than by providing an experience that customers can’t help raving about?
Expectations are high and they’re getting higher
Brands have been competing to impress customers for some time now. As a result, experiences have been getting steadily better over the years.
With the advent of cutting edge technology designed to keep customers in the know about their deliveries, great personalisation software and awe-inspiring analytical tools, brands now have plenty of options at their fingertips. This has of course meant that experiences just keep getting better, and customers’ expectations have risen in line with these improvements.
For brands, recent advances in the customer experience field mean that CX must remain a priority, because there are real risks associated with slipping standards. Customer expectations are incredibly high when it comes to experiences, and companies that don’t live up to these expectations risk being forgotten about while more customer-focused brands steal the show.
Customer experience is key
Digital marketing encompasses a wide range of different disciplines, but at the heart of every great digital strategy is customer experience.
All great digital campaigns will include a focus on customer experience, because standout experiences are so important in determining the real results of these campaigns. To make the most of every marketing investment, and ensure the ongoing success of campaigns, companies need to think carefully about how customers experience their brand, and what steps they can take to improve this experience.
From personalisation and omnichannel experiences, to offering best-in-class customer support for every query, there’s so much that brands can do to enhance the experiences they offer - and make the most of every single interaction.
By putting the focus on customer experience, brands can start to improve satisfaction levels, up customer retention rates and dramatically improve profitability. Customer experience holds the key, and that’s why it’s the most important part of digital marketing.