Each new year brings unique challenges to meet rapidly changing customer expectations, and businesses have to be on their toes in strategizing the customer experience. Customer satisfaction has graduated over the years from being an important aspect of a B2C business to becoming a critical mantra to generate revenue and become successful.
Studies show that brands with quality customer support are likely to generate more revenue by almost 5.7 times when compared to their competitors. However, in a competitive market, it can still be difficult to stand out. Here are 3 CX strategies you can implement to elevate your customer experience and regain market penetration.
Adopt Digital Transformation
Over the past two decades, technology has proven to be a critical enabler in connecting with customers. Digital transformation simply means utilizing technology across each segment of your business to improve processes and drive a higher efficiency thereby improving customer satisfaction. Studies indicate that digital transformation is allowing businesses to increase engagement in a way that customers are about 2X more likely to stick to your brand, and 6X more likely to buy a new product or service regardless of your competitors offering better pricing.
You can begin your digital transformation by evaluating your customer data and understanding who are your real customers and what does their purchase journey look like. Additionally, you can find out the customer habits and emotions involved in each stage of their journey right from awareness, consideration, purchase, retention, and advocacy.
Once you have a clear understanding of your customer, you can implement DX strategies to meet or surpass their requirements. This includes using IT to provide flexibility, AI-powered robots that can answer common questions and provide relevant product recommendations.
Understand Customer Lifetime Value and Focus on Personalized Experience
Realizing the customer lifetime value (CLV) is crucial as it can pay off huge returns. CLV is calculated using the formula below:
Customer Lifetime Value (CLV) = Lifetime Value (LTV)*Profit Margin (M),
where
Lifetime Value (LTV) = Average Value of Sale (A)*Number of Transactions (T)*Retention Time Period (R)
It is important to monitor your CLV and develop strategies to grow it every year. Businesses can improve CLV by personalizing the customer experience and monitoring customer feedback. This can also be achieved by segmenting customers into categories and offering solutions specific to each category. If the customer support is top-notch and personalized experiences make customers feel appreciated, then the CLV is bound to increase.
Use Social Media to Your Benefit
Social media has significantly improved customer engagement and is a powerful tool to understand your customer requirements and create proactive solutions for their needs. Also, customers are commonly found accessing social media channels before contacting any business. This makes it important to have an omnichannel social media strategy where all your content is consistent and delivers the same message.
B2C businesses can shift to a proactive strategy and leverage social media to collect input from the customers rather than applying a reactionary approach. This means offering promotional deals, providing user-generated content thereby building a community of loyal customers, and improving your customer retention.
In conclusion, a modern CX strategy can be a game-changer and differentiate you from your peers.
