Customer experience is the greatest differentiator in the loyalty marketing. At least, that is what most loyalty marketers believe.
Can a unique customer experience leverage loyalty to drive growth opportunities?
According to the management team at Frost & Sullivan, development of an effective CX strategy is key to keeping pace with customers and meeting your brand promise.
Business leaders in today’s competitive environment recognize that the market has become a level playing field, as all companies have their people, processes, and products in place. But, few actions can differentiate a product or price to stop customers from switching to competitors. As a result, loyalty marketers must understand the importance of customer experience. In the next five years, according to Frost & Sullivan, customer experience will drive loyalty and become the key to deciding a company’s fate.
Frost & Sullivan’s latest program, Customer Experience Management, aims to address business challenges by identifying growth road maps, while also supporting businesses to stay focused and aligned to customers and ever changing market dynamics.
As customer experience increasingly becomes a major growth driver, companies can truly depend on it to drive customer loyalty and surpass competition. Frost & Sullivan believes consumers prefer to do business with a customer-centric company, eventually becoming brand ambassadors.
But, customers also will switch companies as a result of poor customer experience, which shines a light on the power of customer experience.
“Customer experience plays a pivotal role in business sustenance in a competitive world, as it can address three key business objectives; acquiring new customers, retaining existing customers, and regaining lost customers,” said Frost & Sullivan Principal Consultant Bijuraj Sarangi. “The more differentiated your customer experience is, the more you are going to gain on these three objectives.”
Although customer experience is a major priority for brands, digital innovation and Mega Trends in the space are currently altering the customer engagement equation like never before. Other challenges include:
-Revenue growth
-Operational excellence
-Customer experience culture
-Differentiation through innovation
-Providing consistent customer engagement
“Transforming customer experience is not an easy task,” Sarangi added. “Taking customer relationship to the next level and driving superior customer experience requires sound understanding of the external drivers shaping customer preferences, innovation and differentiation in customer engagement, as well as internal capabilities to meet customer demands. A CX strategy linking both external market understanding and internal capability enablement can help businesses address strategic as well as operational challenges and enable right experience for the end customers.”