Why is customer experience important?

All of us can remember at least one amazing and one awful customer experience. Customer experiences that exceed our expectations can turn us into a brand’s biggest fan, while negative experiences can quickly do the exact opposite.

Experiences stay with us, so, no matter what industry you work in, measuring and improving your customer experience should always be a key focus for your business.

But first, let’s start with the basics.

What is customer experience (CX)?

Customer experience is the impression your customers are left with after an interaction with your brand. It’s often made-up of multiple touchpoints – a consumer may have a bad customer experience with your website because it’s difficult to navigate, but a good experience with your support team as they were quick to rectify their problem.

To ensure each customer receives a good overall customer experience, you need to look after every touchpoint. After all, that person who had a poor experience with your website may just decide to go to a competitor, and never speak to your incredible support team.

Three reasons why customer experience is important


1. Happy customers tell others – and so do unhappy customers

It’s not unusual for customers to sing your praises if they have an amazing experience with your brand, and word of mouth is extremely powerful. Positive reviews, recommendations to friends and family and happy social media posts can all go a long way to helping you acquire new customers and increase revenue – at no cost to you! Unhappy or angry customers, however, are also just as likely to tell others and make sure their voice is heard on social media and review platforms. By focusing on improving your customer experience, you’ll increase the number of happy, loyal, brand advocates and limit the number of damaging, disappointed customers.

2. A great customer experience can help you stand out

Not many businesses can afford to be the cheapest, and few have the privilege of being able to offer a unique product, so how else can you stand out from the competition? Delivering a fantastic customer experience can help you attract, and retain, loyal customers. 81% of organisations cite customer experience as a competitive differentiator, with 92% seeing an increase in customer loyalty, 84% experiencing an uplift in revenue and 79% reporting cost savings.

3. Good CX is vital for sustained business growth

Acquiring new customers is important, but it’s expensive work. By increasing your customers’ loyalty through great customer experiences, you’ll boost revenue without the cost of getting new customers, as they’re not only more likely to refer you to others, they’re also more likely to spend more money with you in the future. Leaders in customer experience tend to see a 17% growth in revenue on average, compared to businesses lagging behind in customer experience, who only report a 3% growth on average.

Start understanding your customer experience

Collecting reviews can give you great insight into whether your customers are having a good experience or a bad one, but that’s just the start! To truly understand your customers’ experience, you need to collect feedback at every touchpoint. Artificial intelligence can also help you identify common themes in your reviews, allowing you to shout about the parts of your customer experience you get right, and identify where you need to improve.

To find out more about how Feefo can improve your customer experience, get in touch with our friendly sales team today.


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