What Is Customer Experience? – Importance & Strategies

Let’s go back to the last time you wanted to buy a smartphone.

You started with a simple Google search with a question of best phones according to particular features or phones under a specific price range. You might have certain criteria in mind while skimming through the phones recommendations on various websites –

Good after-sale service?

Durability?

Camera?

Performance?

Availability?

… and brand image?

You probably went with the brand with better social validation (better customer reviews) and which fit your requirements.

After this hefty research process, you might have selected, bought, and used the phone and the brand services that came along with it. You might have also compared the same with all the reviews you read before buying.

The offering and all the services gave rise to a customer perception that will influence your future purchase decisions regarding this brand. Moreover, this perception resulted in an experience that may also influence your recommendations about this brand to other people you know.

This holistic experience of the brand throughout your buyer’s process is customer experience. It’s often regarded as the “new competitive battleground” that determines a business’s success.

But what exactly does customer experience mean, and how can you develop a good customer experience?

Let’s find out.

What Is Customer Experience?

Customer experience, also known as CX, refers to a customer’s perception of a brand based on all the interactions throughout their customer life cycle.

It refers to your brand’s physical image and the feelings created by it, both consciously and unconsciously, at every step of the customer’s interaction with the brand.

The two fundamental pillars of CX definition are interaction and perception. Learn more about the benefits that call centers provide to any business.

Interaction refers to the communication and involvement of the customer at various touchpoints like visiting your brand’s website, talking to your sales or customer executive, redeeming after-sales services, etc.

Based on these interactions, the customer develops a perception that refers to their awareness, thoughts, and opinions about your brand.

This perception could be good or bad, depending upon your company’s goals and the customer, the customer lifecycle, and your priority.

What Is A Good Customer Experience and Bad Customer Experience?

According to a survey by Bain & Company, around 80% of the companies believed they delivered a “superior customer experience.” But according to their customers, only 8% really did.

Clearly, most businesses don’t understand what a good customer experience is.

It’s not about just offering promised products or services, marketing them, treating the customers well, or investing time and money in cutting-edge technology to impress the customers. It is more than that. It’s about making the customer journey as smooth, and engaging as possible, from the moment they make a purchase choice through product delivery, till the time they are connected with your brand. This means prioritising customer needs and retaining the customer over your product.

So, if your company prioritises customer queries, uses customer feedback to gain a better understanding of the customers, and finds solutions to customer-specific issues, then it creates a perception that your brand cares about its customers. This is what constitutes a good customer experience.