What Is Customer Experience Strategy?
A clear action or a plan taken in order to improve customer experience calls itself a customer experience strategy. CX strategy is a road map to achieve, deliver, and measure the progress of all customer experience activities of the business.
A customer experience strategy should be able to guide you to decide on the steps to be taken to deliver a remarkable customer experience across all the customer touchpoints.
When a brand designs the right CX strategy and employs an effective customer experience platform, it not only helps to measure and improve customer experience it also reduces cost and allows you to gather the much-needed edge to stand out from your competition.
5 Ways to Create a Customer Experience Strategy
Let’s take a look at 5 ways to design a great customer experience strategy.
1. Define your Ideal Customer Experience
You must have the end goal in order to know what to create. Steve Jobs expresses himself in this manner.
Steve Jobs said – “beginning with the customer experience and working backward to the technology.”
Designing a simple customer experience strategy is the first step in customer experience management. It is essential for a company to clearly convey its desired experience to the entire organization once it has been identified.
Creating a series of statements that function as guiding principles is the easiest way to describe this ideal strategy. Assist staff in understanding the various levels of the customer experience. Determine the chances for the workers to make a good impact.
“We focus on making sure we have a great service-focused culture. If you get the culture right, then a lot of really amazing things happen on their own.” – Tony Hsieh, Former CEO @ Zappos
Zappos’ customer service strategy comes down to staying true to one key principle – To live and deliver WOW.
Just to quote one example of their great focus on customer experience, Zappos had designed a new hire boot camp for 4 weeks. Here Zappos go over company history, their focus on customer service, and the company’s long-term vision. They even arranged the new hire on the phone for two weeks in the call center to take calls from the customers so that they know how much the company is tuned into customer service.
2. Know Your Customers
You’ve already nailed down your perfect customer experience. The following move is to get to know and understand your clients. Only by really understanding your customers’ needs and desires would you be able to communicate and empathize with them.
Making buyer personas is a good place to start. It’s a type of audience profile that lets you figure out who your customers are. These buyer personas are designed to help you get into your customers’ heads and gain a better understanding of who they are.
For example, you will be able to craft a clear buyer persona as below:
- Woman between 25 to 45 years, who lives in the US, and works in the fashion industry.
- Interests are health and fitness, weight management, fashion clothes.
- Driven towards healthy living, healthy products, organic products
- Reasons for not buying are price and quality
The buyer persona is sufficiently detailed to comprehend the different characteristics of your ideal customer.
This is how the buyer personas were created and used in the Spotify campaign. When enough information about the target group was available, personalized messaging was used to build a sense of familiarity.
See how PepsiMax used personas to advertise on Spotify. Pepsi discovered that when the weather gets hot, consumers are more likely to drink Pepsi. They quickly formed a relationship with a business to fund summer activities. They used over 650 audio spots to raise awareness, with the aim of reaching people aged 18 to 49. Each audio spot was designed to concentrate on a specific summer.
3. Measure Customer Experience
You’ve devised an excellent customer service plan. Can you say if your customers had a WOW moment, though? Unless you measure it, you won’t know.
“Companies are increasingly using customer analytics techniques like customer satisfaction analysis, customer engagement analysis, and customer journey analytics to understand and improve CX.” — Forrester, The State Of Customer Analytics 2017
Since customer experience is becoming more important, many large companies are using more than 50 CX metrics. The metrics are either owned by the organization or outsourced to third-party organizations to administer.
Here are 5 types of metrics to measure customer experience:
I. Customer satisfaction (CSAT)
The conventional way of gathering customer feedback is through customer satisfaction surveys (CSATs). One approach is to use survey questions that inquire about satisfaction to gather feedback. Another option is to inquire indirectly through product reviews or shopping ratings.
II. Customer loyalty metrics
Customers are polled on their experience with the product and their chances of staying with the brand in this measure. Customers are often questioned on their shopping preferences and pace, as well as their preferred buying outlets, loyalty card reviews, and so on.
III. NPS or Advocacy or Endorse metric
- The aim of this metric is to gather input from consumers about how likely they are to recommend your products to their friends and family. It can be collected in a variety of forms, including social media ratings, web forums, price sensitivity, confidence ratings, opinion scores, and more.
IV. Quality metric
All measurements should prioritize product or service efficiency. Naturally, the consumer experience would be low if the product does not meet the quality standards. As a result, product satisfaction must be measured alongside all other measurements. Furthermore, capturing all other consumer service metrics is pointless without this measure.
V. Employee engagement
What is the relationship between employee engagement and customer experience?
Employee involvement was described as a key predictor of consumer loyalty in a survey. Employee engagement is rated equal to or higher than other customer experience tactics by 86 percent of organizations. As a result, gauging employee commitment becomes a crucial feature of the customer experience.
There are several other metrics that can be used to measure consumer satisfaction. However, below are some of the most important ones that can not be overlooked.
Rather than relying only on the CSAT, pay attention to all of the metrics. Consolidating input from related indicators and turning it into a CX dashboard would be perfect. This will be distributed to all departments, allowing the whole organization to benefit.
4. Customer Experience Gap Analysis Using Tools and Techniques
Now it’s time to move on to the next step: gap review.
The CX dashboards are already in place. You may be faced with any unforeseen or surprising CX results.
According to a survey, 80 percent of firms claim they are offering outstanding customer support, but only 8% of consumers approve.
This is a startling statistic!! If you thought you were providing a fantastic consumer service, think differently!
When you don’t look at the specifics, you might end up with a tragedy. This is precisely what happened to K-mart. They were certainly calculating CX, but not in the proper place. They took a survey to determine total happiness, and everything seemed to be in order. What they didn’t see was the significance. Customers who were happy did not spend more money, while those who had invested the most money were disappointed. . They failed to notice anything in the big picture.
Is this something you’ve learned before? In any situation, you’ll need to perform a consumer experience gap analysis.
A gap analysis is a technique of analyzing your present output in order to determine the inconsistencies between the current and ideal level of customer experience. This is mainly achieved by concentrating on three questions:
- How is our current Customer experience?
- What is our actual goal?
- What are the plans to close the gap?
Social networking listening, customer reviews through polls, Customer Relationship Management Systems, customer tickets, online user forums, and other tools and techniques can be used to gather customer experience.
Customer experience can be measured and segmented using the methods and strategies, and then addressed using a CX approach. Since the consumer problems can vary, each section of the customer experience will necessitate a separate approach. As a consequence, it’s vital to create personalized messages for consumers in order to capture their hearts.
5. Improve Customer Experience Strategy
This is the final step of the customer experience management process before it loops back around.
You should have ample information on whether consumers are pleased or dissatisfied with your goods and services by now.
Create a good customer experience approach focusing on what matters to the customers based on customer experience insight. True CX management is assessing the actual state of the offering in comparison to what consumers expect. Companies who build on current plans will emerge as winners as desires and wishes change often.
Uber is a perfect example of how to improve customer experience. The wait time was identified as Uber’s main consumer pressure point. Customers were judging their overall consumer experience based on how long they had to wait. This meant that they needed to repair this big-ticket item in order to have an outstanding customer experience. Uber looked at the holes in the industry and devised a strategy to plug them.