Today, it is no longer the motto of “Sell what you can make” but rather, “Make what you can sell” that holds more significance.
These days, it is not enough to provide the customers with just the product/service that they want. They want much more. They want to see your store well organised, having good ambience, excellent in-store infrastructure, ample parking space, omni-channel POS, latest technology to guide them through self-checkouts, etc.
The marketer’s sole focus is no longer only on “What to sell” but equally on “How to sell”. Customer Experience has gained more significance than products and prices.
Here are five key points explaining the need and importance of Customer Experience:
1. Better Customer Satisfaction: A customer’s journey with a store begins before the purchase of a product and continues after it. A retail store has a better chance of retaining satisfied consumers when they consistently provide better customer experience throughout the customer journey. According to a McKinsey report, those who implement this practice can increase customer satisfaction by 20%.
2. Competitive Advantage: Businesses can be differentiated based on product/service pricing and Customer Experience strategies. Based on the latter, a company doesn’t only compete with other similar firms but also across industries. A good Customer Experience is what sets a Brand apart from the others. About 55% of consumers would pay more for a better Customer Experiences and prices of products cannot help distinguish between brands, in such cases.Therefore, Customer Experience is what sustains against competition.
3. Reduces Customer Churn: Customer Churn also known as Customer Attrition happens when customers change their loyalty or quit transacting from a particular store or business. Earlier geographical location was used be the major reason, but these days customer experience plays a major role in deciding customer attrition rate.
4. Increases Customer Loyalty: A customer is more likely to be loyal to a brand that provides them with a Customer Experience that makes them go “WOW”. Customers will always be loyal to a store which offers them highest customer experience, even though they have to travel a little more distance and face some hardships in reaching there.
5. Increases Referrals: Satisfied customers are the brand ambassador of the stores and may act as “referrals” to bring in new set of customers. A customer who has gained a consistent and positive experience from a firm or store may speak good of it to their peers and provide the firm with a positive reputation. Store/Brand reviewers play a key role in influencing referrals. If a customer has a negative experience, not only will they rethink visiting the store again but may discourage others to do so. A customer with a bad experience is twice more likely to share it than those with positive experience.
Therefore, it is important for Companies to invest in Customer Experience and as a long term business strategy.