In today’s fiercely competitive world, the tables have turned – organizations need their customers
more than the other way around. Customers today are more informed and have
more options to choose from than ever before. In such a scenario, organizations need to
drive competitive differentiation to stay ahead in the game. However, the answer to differentiation
no longer resides in products or offerings, but in the way the customer is serviced.
A customer’s experience with an organization has a direct impact on key business parameters
that define success – customer acquisition, retention and advocacy. For instance, a customer
who perceives their experience to be good across all stages of the journey is likely to
return to do more business, thus bringing in additional revenues and potential business
growth via customer advocacy. However, if the experience falls short of customer expectation,
the business not only stands to lose the business opportunity mentioned above, they
will now have to invest more money and efforts in acquiring new customer, thus increasing
their costs. In short, a bad customer experience can do more damage to business than the
positive impact of a good experience.