How to Build a Great Customer Experience Strategy

Lokesh Shivalingaiah

How to Build a Great Customer Experience Strategy

Experience-led businesses have higher customer retention (1.7 times higher), higher return on spend (1.9), and higher customer satisfaction rates (1.6), according to Forrester.

To retain customers and engage prospects, you need a game plan. This game plan is called a customer experience strategy.

A customer experience strategy details how companies intend to deliver a meaningful and positive experience to the customer throughout their interaction with the brand (both before and after the sale).

A good customer experience strategy helps increase customer satisfaction, improve lifetime value, grow revenue, and reduce churn. It can be the key differentiator between customer delight and customer displeasure.

How to Develop a Customer Experience Strategy

1. Shift to a Customer-Focused Vision

Envision a customer-centric framework based on your company’s principles and values. This acts as a guideline for your team members.

2. Know Your Customers

It’s crucial to understand the needs and requirements of your customers, to be able to empathize and connect with them. Create personas to recognize and understand them better.

3. Build Relationships

Emotions drive decision-making, so an emotional connection with your customers is key to growth. According to research, around 50% of a consumer’s experience is based on emotion, and an emotional connection can boost sales by 85%. They’re also more likely to make future purchases and to recommend your products or services to others.

Customers who have had an unpleasant experience on a brand website are 88% less likely to return. (Clicktale)

4. Communicate

Engage with your customers and make sure they get what they need. Respond to them promptly across all channels and devices (email, social media, live chat, or chatbots).

5. Personalize

Use the information gathered throughout the customer experience to provide relevant suggestions and informed support.

6. Ensure Accessibility

Your website must be uniform and easy to navigate on all devices (laptop, desktop, mobile device, or tablet). This creates a seamless experience for both existing and potential customers.

7. Solicit Customer Feedback

Capture customer feedback in real-time through post-interaction surveys, follow-up emails, and similar tools that automate the process. You also might assign a specific support agent to make follow-up calls to gain more insightful feedback.

8. Develop a Framework for Your Team

A good quality framework helps assess and track your team’s customer service efforts and development. Make sure to provide them with the right resources and training.

9. Solicit Employee Feedback

Conduct an annual survey to understand what your team needs to be able to deliver good service.

10. Measure ROI

Most companies use the net promoter score (NPS) to measure the standard of customer experience. It’s based on one simple question: “How likely are you to recommend [product | service] to a friend or colleague?”According to Qualtrics:

Those who respond with a score of 9 or 10 are typically loyal, enthusiastic customers.
Those who respond with a score of 7 or 8 are satisfied with your service but aren’t necessarily loyal customers.
Those who respond with a score of 0 to 6 are unhappy customers who aren’t likely to buy from you again and may even discourage others.

Customer Experience Examples

Endurance

Endurance is a chatbot companion for people who have Alzheimer's disease. During a casual conversation with someone, it can identify differences between what they’ve said previously and highlight areas of memory loss. It’s cloud-based, so the conversations can be accessed by doctors and family members.

Inkhunter

Inkhunter is an app that uses augmented reality (AR) to preview what a tattoo will look like before it’s inked. It can also connect the user with local tattoo artists who specialize in specific styles. It’s highly personal and helps users to be confident in and comfortable with their decisions.

Levi’s

Levi’s has recently launched a customization and tailor shop in New York, where customers can create a unique look by tailoring or painting, or distressing their jeans. They can design the look on a tablet or consult a specialist.

Wrapping up:

Now that you know how to develop a successful customer experience strategy, you can transform your business and adapt to the ever-changing experience economy and gain a competitive edge.