Great customer experience is essential for developing your business credibility. 

We’re not just talking about the normal idea of customer “service” here either — good phone manners and services that actually work — although that is a part of it.

What we’re talking about are positive and dynamic consumer experiences that improve every facet of customer engagement. Right the way from excellent hospitality to easy onsite check-in services, good customer experience needs to consider everything. 

But how does better customer experience lead us to genuine benefits to your business — and why does this matter? 

Starting at the End: Results of Great Customer Experience

84% of businesses that improve their consumer experience increase the amount of money they make, according to a study by Dimension Data. 

What kind of numbers are we talking about here? 

Analysis by Bain & Company estimates that revenue can increase by as much as 8% when better consumer experience techniques are introduced.

This information shows us that — particularly for bigger businesses — customer experience can have outstanding results for increasing profitability. Under a company with £4 million turnover, projected revenue increases from improving consumer experience can hit a whopping £320,000 a year.

Further studies show that 73% of businesses with above-average customer experience outperform their biggest rivals in terms of total revenue. 

We’re not just looking at a few pieces of data pointing towards an idea. We’re looking at an avalanche of facts, case studies, and first-hand accounts that demonstrate the potential of making changes that benefit your consumer in very noticeable ways. 

Businesses Aren't Doing Enough for Their Customers! But Yours Could Be.

The results shine a spotlight on a home truth: it’s just not enough to just talk-the-talk.

Many businesses will claim customer experience is a core goal in their growth strategy, but most of them don’t act on ways to add value to that experience. 

The same report by Dimension Data highlights that while 71% of global enterprises see consumer experience as their top measure of overall brand performance, only 13% would be comfortable stating their consumer experience is as good as it can be. If a business can’t even adequately rate its own customer service, paying clients are unlikely to be looking upon them with more favourable eyes. 

So why are 87% of businesses apparently not putting enough effort into their customer experience activities? Well, for many, it’s certainly not about a lack of interest. Most businesses want what is best for their customers! This reported lack of great customer experience is based not on any sort of cynical outlook, but rather on a not really understanding how to develop customer experience that also improves profitability. 

How Improving Customer Experience Translates to Higher Revenue

Customer Experience Increases Loyalty

Consumer data released by Microsoft shows us that 96% of customers are influenced by consumer experience when it comes to repeat business. Great customer experience keeps them coming back, while poor customer experience sees them switch to rival brands. 

And loyalty is important for profit margins.

Remember that study we previously referenced by Dimension Data? Well, it shows us that with better customer experience comes increased brand loyalty in a staggering 92% of cases. This, in turn, translated to 79% of organisations saving money on day-to-day expenses.
How?

It’s cheaper and easier to market to repeat customers, with some requiring no additional marketing to return again and again. Loyal customers also spend more on your business. That rapport and trust you’ve built with them means they’re more comfortable in making larger purchases. 

In short, building customer loyalty drives costs down while ensuring higher revenue. 

Good Experience Influences Purchase Patterns

It’s not just loyal customers who spend more on your business.

Customer experience is a valuable trust signal for new consumers, as it develops a sense of value and significance in the consumer on behalf of the business. If you’re willing to put time and energy into making sure customers have the best possible buyers experience, they’re more likely to spend more because they feel you genuinely care about them. 

Customers will spend up to 21% more on your business if they believe they’ll receive exceptional service and experience. 

Good Customer Experience Often Leads to More Avenues of Engagement

There is a tendency within customer experience strategy to start building up different platforms of customer communication. This helps link everyone together, and is seen as a great way to reach people. Businesses will develop their social media, they’ll also devise email marketing, special client based campaigns, as well as introducing features like chatbots. 

This variety fuels engagement from customers as it makes your business more transparent, and opens up opportunities suited to your customers’ unique preferences. While on your quest to become more connected, you inadvertently invite greater levels of interest and, therefore, more chances to build those strong client relationships.  

Consumer Experience Analysis Isolates Areas of Improvement 

To improve the consumer experience, critical analysis is essential. When your business performs a critical analysis of anything, it will invariably discover areas of improvement that could help your business expand in new ways.

From sales conversion tactics to following up on repeat opportunities, critical analysis of customer experience helps you isolate places where you could be doing better!

An example of this could be in your visitor management systems. It’s common for manual check-in systems to be in place, but this process isn’t really optimised for success.

Manual systems create a heavy administrative burden on front of house staff and communication delays — increasing the chance of human error. They can also increase costs, all that additional admin time costs money! Instead of these manual processes, you could use low touch, automated visitor management software systems.

Visitor management systems streamline your visitor experience, setting the right first impression from the moment someone enters the building. These systems not only improve customer experience but they also improve check-in efficiency and employee productivity, and all this additional free time means your reception teams have time to do what they do best, create a welcoming onsite experience for customers and colleagues. 

Key Takeaways

Any business can take positive steps to improve their customer experience in a way that not only benefits the consumer, but also benefits the bottom line. 

Those that are concerned about ROI only need look at the real and measurable benefits of customer experience. Really, it should be considered in your business strategy in much the same way as product feedback or employee retention.

So what’s next? 

Simple! Take steps to improve your customer experience and you’ll most likely see results. Nothing in business is guaranteed but — even in risk-averse business cultures — an 84% strike rate seems to be odds worth gambling on.