One of the marketing strategies that has received attention in recent years is CX (customer experience). Implementing improvement measures to improve CX, which refers to “customer experience” and “customer experience value,” is said to lead to corporate branding and the acquisition of repeat customers.
In this column, we will explain the meaning of CX, the differences from similar marketing terms, and the benefits and points. In addition, we will introduce successful cases of CX improvement, so those who want to learn more about CX or those who want to prepare for CX improvement should refer to it.
INDEX
- What is CX (Customer Experience)?
- Why CX is attracting attention
- Benefits of improving CX
- The key to CX improvement is to be close to each individual.
- How to improve CX (customer experience)
- Examples of improving CX
- summary
What is CX (Customer Experience)?
CX (Customer Experience), which is translated into Japanese as “customer experience value” or “customer experience value”, is a concept of management strategy and marketing strategy. This refers to a way of thinking that emphasizes not only the rational value of products and services, such as functionality, performance, and price but also the emotional value that comes from the process leading up to purchase and the post-purchase experience, such as after-sales follow-up.
Marketing terms that are often confused with CX include customer success and UX (user experience). To deepen your understanding of CX, it is important to understand the differences between each.
Difference in customer success
Customer success is supporting the business success of customers through the provision of products and services. It also includes activities to maximize the customer’s lifetime value (LTV). A proactive approach to customer success is required, and specific metrics include upsell/cross-sell, churn rate, etc.
Customer success has a high affinity with subscription services, and it is said that the popularity of subscription services is behind the popularity of customer success.
While customer success is the activity that helps customers achieve their goals, CX is the activity that enhances the customer experience. Both are customer-oriented activities but have different goals.
Difference from UX (user experience)
UX (user experience) refers to the concept of focusing on the experience gained by actually using a product or service after purchasing it or using a service.
CX includes the process leading up to purchase and after-sales follow-up, so the range of targeted experiences differs. When CX is subdivided, part of it is UX.
Why CX is attracting attention
There are two main reasons why CX is attracting attention. Each will be explained in detail.
Diversification of consumer behavior
In the past, companies used brick-and-mortar stores, call centers, and advertisements to disseminate information and introduce products and services to consumers, leading to purchases.
However, with the spread of the Internet and advances in social media, it has become possible for consumers to collect information on their own. As a result, even if you approach a company intending to promote your company’s products or services, the consumer may have already gathered information on their own and narrowed down the candidates. Or, there may be cases where the product or service has already been purchased.
It is becoming difficult to maintain an advantage simply by disseminating information. As a result, companies have begun to focus on CX to differentiate themselves from other companies.
It has become difficult to differentiate products and services.
In modern times, we are overflowing with a variety of products and services. It has become difficult to differentiate our products from other companies based on values such as price and functionality.
By improving CX, you will be able to differentiate yourself by adding value that appeals to consumers’ emotions in addition to price and functionality.
Benefits of improving CX
There are four main benefits to be gained by improving CX.
Improving brand image
When a product or service provides positive value and experience for a customer, that customer will trust the brand. As a result, customers may become interested in the products and services offered by the same brand and end up purchasing them.
Preventing withdrawal
Not only will your products and services be of high quality, but if you improve CX and increase customer satisfaction, you will be able to differentiate yourself from other companies and prevent your company from leaving your company.
Generally speaking, it is estimated that acquiring new customers to replace lost customers and getting them to use your products and services costs five times more than retaining existing customers. 1:5 rule).
To prevent customers from leaving, it is important to create a system that aims to improve CX in advance.
Acquire repeat customers
Another benefit of improving CX is that it leads to the acquisition of repeat customers. If you can provide your customers with an experience that satisfies them with your products and services, they will be more likely to use your service again and become repeat customers.
New acquisition through word-of-mouth effects
Customers who become more favorable toward your products, services, and brands through improved CX are more likely to become fans and spread positive information to those around them.
Nowadays, more and more people compare and purchase products based on reviews on social media. Therefore, the more positive your reviews, the more you can expect to promote your products and services and acquire new customers.
Differentiation from other companies
When CX improvement creates added value for products and services, it leads to the branding of companies and services. As a result, you will be able to differentiate yourself from your competitors.
The key to CX improvement is to be close to each individual.
Next, we will introduce points for improving CX.
Align with diversified values
To improve CX, you must provide services that align with customer values. In recent years, as values have diversified, customers’ hobbies and preferences and the elements they seek in products and services have become more fragmented.
Therefore, “One to One Marketing” is important, which aims to communicate optimally according to each customer’s hobbies, tastes, and needs.
Appeal to the senses, perceptions, and interests
To improve and improve CX, it is important to appeal to the senses, perceptions, and interests. We will introduce what each applies to.
feelings
Acts that appeal to the senses include providing courteous service when serving customers, and communicating to leave a positive impression on customers. The satisfaction we get from using purchased products and services is also an act that appeals to our senses.
perception
Perception refers to what we feel with our five senses. Examples include things that appeal to the sense of sight, such as store design, things that appeal to the sense of smell, such as scent, and things that appeal to the sense of hearing, such as background music.
The ease of use of a website can also be considered as one of the factors that appeal to the five senses.
interest
To appeal to customers’ interests, it is important to obtain customer needs and information through the following methods and approach them with appropriate value.
- Customer web search history
- SNS posts and reviews
- customer survey
- Products and services purchased in the past
Improving and improving CX involves a combination of sensory, perceptual, and interesting elements.
How to improve CX (customer experience)
Introducing ways to improve your CX.
Accumulate and manage customer data
To improve your CV, it is important to accumulate, organize, and analyze data obtained from customers. To this end, it is essential to collect customer data through surveys and user interviews.
Surveys and user interviews allow you to hear opinions directly from users of your product or service, which can help you set up personas and consider measures.
Create customer journey maps from customer data
A customer journey map is a chronological map of how customers learned about and purchased a product or service. It is used to find out what kind of people get to know your product or service and how it satisfies their needs.
Once you have organized your customers’ behavior and emotions by creating a customer journey map from your customer data, you can consider where customer satisfaction is declining, its causes, and points for improvement.
Build consistent values and behavioral guidelines across the company
We will decide on improvement measures for each process in response to issues revealed through information collection and organization. Additionally, after determining the response for each process, we clarify the company’s values and behavioral guidelines. Share it throughout your organization to ensure unity of intent.
CX refers to a customer’s overall experience when interacting with a product or service. Therefore, instead of only a limited number of departments working to improve CX, all employees are required to have a common understanding and act in the same direction.
Evaluate and improve measures
After considering and implementing measures to improve CX, evaluate and improve the measures. KPIs vary depending on each process, but include the following:
- customer satisfaction
- NPS
- Churn rate (cancellation rate)
- Customer acquisition rate
- Average number of page views
- conversion rate
- Retention rate
Examples of improving CX
Here, we will introduce several examples of improvements in CX.
Food industry/Company A case study
Company A provides various services such as selling food drinks and goods. In addition to the functional value of standard products and limited edition products that can only be purchased at Company A’s stores, Company A creates an excellent customer experience by observing each customer’s situation and providing optimal customer service.
We also set ourselves apart from our competitors by creating a unique concept of “a place where you can relax in your way, outside of home and work.” Each store has a different design, and each store is designed in consideration of the area in which it will be opened.
Insurance industry/Company C case
Company C in the insurance industry posts opinions and responses received from customers on its official website. You may feel that there are disadvantages to posting opinions that include dissatisfaction. However, clarifying the customer’s opinion and what was done, shows the company’s commitment to the customer.
We also manage and analyze customer behavior when visiting our website and data from chat tools to constantly improve our customer service operations.
Gas industry/Company D case
Company D in the gas industry also renewed its official website to improve CX. The number of members has increased significantly by improving the UI on the page and making it easier for customers to gather information. In addition, we conducted a campaign that granted points for logging in to all users, including existing customers.
summary
We introduced the meaning of CX, the benefits of improving CX, and specific success stories of companies.
Improving CX not only leads to branding and acquiring repeat customers but also aims to acquire new customers and prevent customer withdrawal through word-of-mouth effects.
Perform analysis to improve CX and aim to provide CX that meets your customer’s needs.
