Customer Experience: Breaking down the buzzword
What is it really and why is it worth your focus?
Customer experience’ (CX) has quickly become one of the most talked-about concepts in retail. But, with all the hype, it’s easy to overlook what CX truly means. Is it just another trendy buzzword? Is it a fundamental shift in how retailers engage with customers? Does it really make a difference to your business?
Customer Experience, what is it really?
In its true form, ‘Customer Experience (CX)’ is a combination of every interaction a customer has with your business, from the moment they first hear about you to the moment they’ve made a purchase, and beyond. It includes everything— your website, shopping in-store, talking to your team, unboxing their delivery, warranties & returns, the list goes on!
But it’s not just about the transaction; it’s also the emotions, perceptions, and outcomes that result from these interactions.
As individuals we all experience the world around us differently based on our cognitive bias. The environment around us and our previous experiences shape this bias that alters the way we consume products or services.
Understanding how the touch points in your business interact with the psychology of an individual will help you to unlock CX it its fullest form.
Customer Experience (CX)
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Every touch point your business has with a customer
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your customer’s personal bias and emotions
Customer Service vs. Customer Experience: What’s the Difference?
A super common misconception is that CX is just good customer service. While customer service is certainly a key part of the equation, it’s only one element of a much larger picture. Let’s break down the differences:
Customer Service is typically reactive, focused on solving problems as they arise. If a customer has an issue with your product or service, the customer service team is there to address it.
Customer Experience (CX), on the other hand, is holistic. It involves understanding how each touchpoint your business has with a customer intersects with one another to create a whole picture or the Customer Journey. Great CX is not about fixing problems; it’s about actively connecting these touchpoints together, to anticipate customer’s needs in order to exceed their expectations before issues even arise.
Why CX Matters for Businesses of Every Size
According to research by PwC, 73 percent of customers now say CX is the number one thing they consider when deciding whether to purchase from a company. For small businesses, CX is what can help you stand out from your competition. In today’s market, customers expect more than just a product—they want an experience that’s easy, personalised, and meaningful. If customers feel valued and cared for, they’re more likely to come back and recommend your business to others.
How can you improve? And is it worth the investment?
3 Simple Ways to Improve your CX
1. Audit your CX
How can you know what to fix if you don’t know what’s broken?!
The first area I work on with my clients is making sure we have an in-depth understanding of how their CX stacks up against their direct competitors and market leaders in the Australian CX space.
One of the most unbiased ways to do this is to survey your customers, asking questions about the user experience they have on site, the customer service they receive, the product or service.
These sorts of surveys can also be used to drive sales to your business when they are incentivised with discount codes or vouchers. A win-win!
2. Personalise the Shopping Experience
Whether in store or online, Zendesk’s CX Trends Report found that 59 percent of consumers believe businesses should use the data they collect about them to personalise their experiences.
Personalisation makes a big impact.
The best kind of personalisation comes from connecting the touch points through data.
Check that all your emails are being sent from one source, that all data is being stored in one place as a single source of truth and any apps you have are compatible and integrated with one another.
From there, that is where the magic happens, you will start to see a holistic data view of the customer, so you can personalise their experience.
For example, if you have customers’ emails, send them a digital thank-you note after their purchase or recommend products based on what they’ve bought before.
Small tweaks to your processes and systems like these show customers that you’re paying attention to their needs and help build a stronger connection, leading to repeat business.
3. Be Proactive in Customer Support
Don’t wait for customers to come to you with complaints—reach out to let them know to expect it.
It is a scary concept to reach out and say you made a mistake or there has been a problem in fear of customer backlash, but my personal experience doing this has taught me to expect otherwise. Over hundreds of campaigns, shipping delays, faulty batches and out of stock products, the vast majority of these conversations turn into thanks, and a more loyal customer than you would expect.
By being proactive and anticipating customer needs in these tough moments, you show that you care about their experience, which helps build trust and loyalty.
The bottom line
The good news is, improving CX doesn’t require fancy tools or need to harm your bottle line, the CX Index reports that it's in fact the opposite, with Customer-centric brands surveyed reporting profits that are 60 percent higher than those that fail to focus on CX.
Understanding your customers, what makes them tick and making small changes that show you care. These efforts can create loyal customers who keep coming back and help your business grow.
