You’re here, so you have a fair idea of how CX plays an important role in retaining customers and driving revenue.
We’ve been hearing crazy stats like how CX initiatives by companies can actually overtake Price and Product as the key brand differentiator (Source: Walker)
So now we have a question for you.
What’s your take on this? Can a business thrive by only banking on stellar CX?
We’d love to hear your valuable perspectives, comment away :)
Customer service and the customer experience really are the new marketing, the new brand differentiator. Why? Because so few products and services are truly unique, and so few are literally needed by a customer.
So if the shopping/ownership/guest/customer experience is generic as well, a business/brand quickly falls into the commodity zone, and will always be viewed as interchangeable by the customer.
Any business leader who thinks investing in the customer experience is “too expensive” is either shortsighted or lousy at math. My research shows that some 93-94% of customers purchase based on word of mouth. And of course that word of mouth is driven in significant part by the customer experience.
Author • Forbes Senior Contributor • Customer Service Consultant
President and CEO, Four Aces Inc.
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I think the oft-quoted example of why people pay so much for a Starbucks coffee is a great example of this. That you’re paying for the service experience over much cheaper (and less convenient) ways to get a cup of coffee.
Flipping it helps too. I bet most of us have companies that we’ll never use again due to a poor customer experience. I know I have some :)
Finally, the adage “you get what you pay for” applies here too.
As a customer, I believe most brands I love to repurchase and I keep engaging with have hit the sweet spot right between an awesome product and an amazing CX. While we cannot come to a concrete conclusion that Price doesn’t matter at all, I can observe that people are willing to overlook the price factor when the value offered is worth it!
P.S - Can’t stop thinking about Netflix when on this topic. Anyone else completely hooked on Netflix?
I mean I think Zappos, Amazon & Whole Foods (now all just amazon) are prime (no pun intended) examples of this. Zappos is not the cheapest and whole paycheck certainly is not, but I appreciate great customer service. Online ordering is a lot like regular retail or even a restaurant these days. I have certainly switched banks over customer service in the past.
@Bethany Wesley Thank you for sharing your thoughts. I definitely agree with you that Amazon is leading e-commerce and it has a lot to do with their impeccable customer service around the clock. In today’s virtual world a great customer service plays a very important role in customer loyalty. Thanks again for your view!
@Gowrirao That is a very interesting view. Thanks for sharing