By: Kevin Faber
Customer experience is perhaps the single most valuable and emphasized component of business operations. Both B2B and B2C companies greatly value the concept of creating exceptional customer experience as the bottom line of achieving revenue growth.
Businesses have put in place appropriate measures of ensuring that customers get an exemplary experience whenever served, thereby creating a durable business-customer experience. It is a common thought that businesses with good customer experience generally tend to perform well, and research has shown and validated the existence of an actual relationship between good customer experience and revenue growth.
Enhancement of Brand Loyalty
Businesses that are willing to go an extra mile in creating exceptional services generally improve on the customer’s dedication to the company. They enhance customer satisfaction, thereby making buyers more than willing to maintain their loyalty to provided products and services.
Researchers have shown that 86% of customers who receive exemplary buyer experience are normally more than willing, under favorable circumstances, to return to the company and make further purchases. From a financial perspective, such a company would be bound to make more sales as compared to one that does not value customer experience as greatly.
Businesses that handle customers well generally create shared trust. The profound relationship between the two parties is normally extended further, especially by customers who show a willingness to refer others to the company.
Statistics support this ideology, as it has been proven that customers who have been served well by a business are more than 11 times likely to make recommendations to other customers. Such referrals act as sureties to the newly-recommended buyers that they’ll receive services and goods that will meet their expectations. In terms of sales, such a company would be bound to make more money through word-of-mouth referrals, which act as a direct advertisement.
Mending of Negative Customer Experiences
Businesses and companies do not always meet customers’ expectations and create a positive customer experience. In some unavoidable circumstances, customers may be unsatisfied with goods and services rendered. In such instances, a business oriented and inclined towards creating exceptional customer experience would most certainly work towards mending relationships with the unsatisfied customers. Companies that focus on improving their worst customer experiences ultimately gain by turning negative feedback into revenue.
Customers who were previously dissatisfied with a company often turn out to be the biggest loyal fans. Such word-of-mouth referrals are perfect in drawing more sales by convincing others to purchase from that business. Service provision companies are particularly more emphatic on the concept of focusing on improving customer relationships. Airlines, hotels, and restaurants, for example, greatly rely on good customer relationships to generate more sales.
CX and Employees
There also exists a relationship between a business’ ability to create exceptional customer experience and the satisfaction of its employees. A business that generally values its employees by creating good internal and external relations performs financially well in the market—they create an ambient atmosphere where employees enjoy working.
Satisfied employees generally tend to maintain their loyalty to the company, thereby increasing retention while reducing turnover rates—they also contribute heavily to the company’s general performance. For instance, their productivity is greatly enhanced, thereby increasing the company’s sales and the provision of quality services.
Companies that create a good relationship with their customers also benefit by having their employees motivated and dedicated. In most cases, employees who are satisfied with the company score well on the employee net promoter system whereby they tend to be more than willing to refer other qualified employees. The referral system works equally well for other aspects of referrals: satisfied employees would be more than willing, for instance, to provide essential recommendations and details to management. Such recommendations may come in handy as far as fetching new markets and obtaining high revenues.
B2C companies greatly value obtaining feedback from customers regarding the services rendered to them. Whenever such business is obtaining the feedback and appropriately acting upon it, it creates an avenue for improvement of the company’s operations in a competitive market. The implementation of changes to fill particular voids in the quality of goods and services becomes an avenue for bettering the relationship between the company and its customers.
There exists a direct correlation between customer experience and level of revenue generation in a company. Research and statistics have accurately shown that businesses focused on creating good customer experience generate more revenue than those that don’t. It is, therefore, the responsibility of a company to value customer satisfaction as part of the strategy to increase its sales and dominance in the market.
By Kevin Faber
About the author
Kevin Faber is the CEO of Silver Summit Capital. He graduated from UC Davis with a B.A. in Business/Managerial Economics. In his free time, Kevin is usually watching basketball or kicking back and reading a good book.
Follow him on Twitter: @faber28kevin