The single most exciting opportunity for ECHOtape this year isn’t a new adhesive technology or a new product launch. It’s actually ‘customer experience’ and it’s going to redefine our business.
What is Customer Experience?
Customer experience (also known as CX) is defined by interactions between a customer and an organization throughout their business relationship. An interaction can include awareness, discovery, cultivation, advocacy, purchases, and service.
In fact, a study by Oracle found that 74% of senior executives believe that customer experience impacts the willingness of a customer to be a loyal advocate.
Simply put, happy customers remain loyal.
It makes sense, right?
Here are a few CX statistics that caught our eye:
- 1 in 3 customers will leave a brand they love after just one bad experience,
- Customers are willing to pay a price premium of up to 13% (and as high as 18%) for luxury and indulgence services, simply by receiving a great customer experience,
- 49% of buyers have made impulse purchases after receiving a more personalized customer experience.
- Customers that rate companies with a high customer experience score (i.e. 10/10) spend 140% more and remain loyal for up to 6 years.
- The Temkin Group published a study and found that companies that earn $1 billion annually can expect to earn, on average, an additional $700 million within 3 years of investing in customer experience. That’s a 70% increase in revenue within 36 months!
Put simply: Companies who successfully implement a customer experience strategy achieve higher customer satisfaction rates, reduced customer churn, and increased revenues.
Is CX The Same As Customer Service?
No. And here’s why: In most cases, a customer’s first point of contact with a company is usually by interacting with an employee, either by meeting in person or by speaking on the phone. This gives your business an opportunity to deliver excellent customer service.
However, customer service is only one aspect of the entire CX experience.
For example, if you book a vacation on the phone and the person you are speaking with is friendly and helpful, that’s good customer service. Yet, if your tickets arrive early and the hotel upgrades your room, then that’s a great customer experience!
That’s how the two are different!
At ECHOtape, we have always been very customer-focused, but customer service is no longer good enough. We need to focus on customer experience as a whole and develop new ways to strengthen customer relationships through technological breakthroughs.
Introducing CX to ECHOtape
The good news is that focusing on customers is in our DNA and company culture.
The bad news is that we need to revisit everything we know about customers, all of our assumptions, get more information, see where we have gaps in our knowledge and upgrade our technology and core interactions, digital and human.
Obviously, this will take time, but in the fourth quarter last year, we made the first step. We created a cross-functional team representing every major customer experience touchpoint across ECHOtape — sales, marketing, customer service, and operations
While there are four key components to launching a CX program, the first goal of our team is to focus on mapping the customer journey and identifying experience gaps.
What is the customer journey map? A customer journey map summarizes the key interactions that a customer experiences with your brand. When it’s developed right and optimized, any employee should be able to understand the key touchpoints in the customer’s journey and what is related to their particular role in the CX program. We believe this map will help align our experience strategy across company channels and identify areas of improvement.
This is a complex endeavor, one that I expect to take a full year of learning and discovery. But one thing we know for sure already — investing in customer relationships is a solid strategic choice in the current economy.