As we reflect on the success of our Building AI-Driven Customer Experiences workshop held on the 6th and 7th of March, the significance of Customer Experience (CX) in today’s business landscape becomes evident.
Debunking CX Myths
| Myth | Clarification |
|---|---|
| CX is only about providing excellent customer service | CX encompasses every customer interaction with a brand. It includes marketing, sales, product experience, website usability, delivery processes, and post-purchase support. Each touchpoint contributes to shaping the overall customer perception and satisfaction. |
| CX initiatives require significant investment and resources | While some CX initiatives may require investment, not all improvements need to be costly. Often, simple changes in processes, communication, or customer feedback mechanisms can have a significant impact on CX. |
| CX is only relevant for B2C business | CX is equally important for B2B businesses, although the dynamics may differ. In B2B scenarios, building strong relationships and delivering value-added experiences are essential. |
| CX is the responsibility of the Customer Service Department | In reality, CX is a holistic approach that involves every interaction a customer has with a company across all touchpoints throughout the customer journey. This includes marketing, sales, product development, operations, and beyond. |
Importance of CX
CX is crucial for several reasons:
- Customer Satisfaction – Positive customer experience increases satisfaction. When a customer’s brand experience is smooth and enjoyable, they’re more likely to return for future purchases and recommend the brand to others.
- Brand Loyalty – A great customer experience fosters loyalty. Customers who feel valued and appreciated are likelier to remain loyal to a brand, even in the face of competition or price changes.
- Increased Revenue – Exceptional experiences can help businesses increase sales and revenue as satisfied customers tend to spend more. This leads to repeated purchases and additional products/services.
- Differentiation – Products and services are often similar in today’s competitive market. Brands prioritising CX stand out from the competition and gain a competitive edge.
- Word of Mouth Marketing – Happy customers share their positive experiences with their peers- becoming brand advocates and providing free word-of-mouth marketing that significantly impacts a brand’s reputation and customer base.
- Feedback Loop – Customer interactions provide valuable feedback for businesses. Companies can make informed decisions to improve their products, services, and overall customer experience by understanding customer needs, preferences, and pain points.
Customer Service vs Customer Experience
Many support agents use customer experience and customer service interchangeably; hence, the confusion of both terms having a similar meaning.
However, they are two separate concepts. Customer service is about assisting the customer with a particular need in a specific circumstance. In contrast, customer experience refers to the whole customer journey, encompassing all interactions between a brand and a customer.
In short, customer service is a one-time interaction with a reactive approach to an isolated event, and customer experience is an overall experience with a proactive approach to an ongoing relationship.
Fundamentals of Customer Experience
Behaviour
| Behaviour | Desc. |
|---|---|
| External Stimuli | – A website’s clean design, appealing visuals, and user-friendly interface (external stimuli) can catch customers’ attention. – This positive first impression sets the tone for their shopping experience. |
| Social & Cultural Norms | – Social and cultural norms often influence customers to look for products aligned with current trends. – They will be drawn to items endorsed by influencers or those reflecting popular cultural preferences. |
| Past Experiences | – Customers with positive experiences from previous interactions with a brand are more likely to return. – Negative experiences could influence them to explore alternative options. |
| Motivation & Goals | – The customer’s motivation could be to find a specific product for a special occasion. – The goal is not just to make a purchase but to have a satisfying and efficient shopping experience that fulfils their immediate needs. |
| Psychological & Cognitive Processes | – A customer’s psychological and cognitive processes come into play when they navigate a website. – Clear product descriptions, easy navigation, and persuasive product recommendations can positively impact their decision-making process. |
Needs
Understanding needs is crucial for fields such as psychology, marketing, and customer experience, as they provide insights into human motivations and behaviours across different aspects of life.
Categories of needs include:
| Needs | Desc. |
|---|---|
| Psychological Needs | Basic survival needs such as air, water, food, shelter, sleep, and clothing fall under this category. These needs are fundamental for sustaining life. |
| Safety and Security | Includes the need for physical and emotional safety, stability, protection from harm, financial security, health, and overall well-being. |
| Self-Actualization | The pursuit of realizing one’s full potential, personal growth, and achieving personal goals. It involves the desire for self-improvement and fulfilling one’s capabilities. |
| Cognitive & Intellectual | Includes the need for knowledge, understanding, exploration, curiosity, and the mental stimulation from learning and problem-solving. |
| Consumer | In marketing and consumer behaviour, these needs are related to the desires and requirements that drive individuals to purchase goods and services. This includes functional, emotional, and social needs associated with consumption. |
Efforts
Balancing Efforts versus Need
Customers evaluate the effort required to complete a purchase versus the perceived need for the product/service. An efficient checkout process, transparent pricing, and convenient payment options contribute to a positive experience, minimizing the perceived effort.
Balancing Efforts versus Time
If the website is slow to load or the checkout process is lengthy, customers may abandon their cart due to the perceived time investment. A streamlined process ensures a time-efficient and satisfactory experience.
Balancing Efforts versus Security
Security concerns play a role, especially during the payment process. A secure and trustworthy payment gateway is essential for the customer to feel confident in providing their financial information.
Conclusion
ORLIG and ANBIZ offer CX training workshops to help professionals understand how CX impacts their company’s sales and churn rate, identify gaps in the commercial process, and improve operational efficiency.
For more information regarding future workshops, please visit the ANBIZ event webpage.
