Focusing on customer experience is one of the most important things a company can do. Happy customers buy more, purchase more frequently and are vocal brand ambassadors of the brand. It also costs 6-7 times more to acquire a new customer than to retain an existing one.
The cost of losing a customer due to bad experience is significant. News of bad experience reaches twice as fast as praise for good service. Customers no longer suffer in silence because they do not have a way to let their dissatisfaction known to others. Through their Facebook walls and Twitter timelines, they can potentially ruin a company’s future business.
So what does it take for a company to keep its customers happy? How do successful companies manage customer experience?
While customer experience management is not an easy problem to solve, one of the most important pieces of the puzzle is training your company’s employees to create a superior experience for your customers.
No matter how great your product is or how talented your employees are, the one thing that a customer remembers is his interaction with your staff. For him, every single employee he dealt with represents the brand. If his experience was bad, he projects it on to the brand. The brand, as a whole, gets tainted due to the incompetence of a single employee. Hence, training your employees is a crucial step in making your company customer-centric and also has the following advantages:
Creates an effective workplace
Employees who have undergone training feel more valued and important. Training sessions are company’s investment in people (time, money and effort). Employees who feel valued remain motivated, help in creating a positive work environment and a positive customer experience. Trained employees feel well informed which helps them feel more aligned with the organization and part of the team.
Reduces employee churn
In a previous article, we explored the relationship between employee churn and customer experience. Motivated employees churn less, and go out of their way to resolve customer issues. Focused training instills a sense of duty and importance in an employee and keeps him motivated for a long period.
Helps employees imbibe the customer-centric nature of the company
Customer experience is not a department. It’s a philosophy to be embraced by everybody – from the CXOs to the interns.
A company becomes truly customer-centric when each of its employees understands how customer experience is important to the company, how customer service fits into the overall company culture and what role he can play in it. This does not happen spontaneously. It requires training to be imparted regularly.
When a company focuses on training it’s employees, they get the following feedback from customers:
- Increased customer satisfaction
- Improved purchasing options
- Enhanced customer loyalty
This ultimately benefits the organization in the following ways:
Increases turnover and profit
Organizations experience higher retention levels, acquire new customers easily, reduce employee turnover, and boost bottom-line sales. If the business improves its ability to serve customers, then customers are more loyal and this leads to a sustained growth.
Customers are increasingly more willing to pay more for a better experience. At the same time, they do not hesitate to spread the word when they have a bad experience. Word-of-mouth is a powerful double-edged sword. It can seriously hurt your brand’s reputation, but it can also work in your favor. So if you manage to deliver an enjoyable experience, which comes with well trained, motivated and knowledgeable staff, your customers are sure to pass on favourable recommendations and reviews.
Builds a sustainable differentiator
Superior customer experience is a much more viable and sustainable differentiator compared to discounts or deals. With increasing commoditization and the availability of a multitude of options, offering an engaging experience is a sure way to retain your market share.