In today's business world, customer experience (CX) has become a critical factor for companies across various industries. Providing exceptional CX not only helps you to retain existing customers, but it also attracts new ones, increases sales, and drives brand loyalty. As such, businesses are increasingly focusing on improving their CX, and for good reason.
However, enhancing CX can be a challenging task, requiring significant effort and resources. Fortunately, technology has made it easier for businesses to improve CX through a variety of tools and solutions.
In this article, we will discuss some of the most effective tools and strategies that businesses can use to improve their CX, as well as why it’s such an important facet of modern business survival.
How Can Tools Be Used to Improve CX?
CX is far-reaching, and as such, there are numerous customer experience tools to supplement specific areas. Some of the main aspects of customer experience you can improve with technology and new processes include:
Improved customer support
One of the most significant advantages of using CX tools is improved customer support. For example, Media Sharing and Shared Review tools allow agents to see what the customer sees and guide them through the process, reducing errors or misunderstandings.
Online document exchange tools enable customers to upload or download important documents without the need for physical visits or mail, while self-serve automations empower customers to find answers to their queries and solve their problems quickly and efficiently, without the need for human intervention.
These tools not only save time; they also provide a higher level of convenience, making customers feel valued and satisfied. By meeting customers at every touchpoint and covering all bases, you can ensure they are sufficiently supported and able to access help in any capacity they need, therefore improving your customer support overall.
Personalised recommendations for customers
One of the most effective ways to improve CX is to provide personalised recommendations to customers. When you analyse customers' purchase histories, preferences and behaviors, you can tailor your recommendations to each individual's unique needs and interests.
Personalisation is a crucial aspect of the customer journey as it can greatly impact a customer's experience and overall satisfaction with a brand. According to a study by Epsilon, 80% of consumers are more likely to do business with a company that offers personalised experiences.
Through tailoring interactions with each customer based on their unique preferences and needs, you can create a more engaging and enjoyable experience that fosters loyalty and repeat business.
Improved customer journey
Another key way that tools can be used to improve CX is by enhancing the overall customer journey. By mapping out each step of the customer journey, you can identify areas where improvements can be made and then use tools to address those issues.
For example, you can use screen sharing and co-browsing tools to provide customers with real-time assistance during their online interactions. These tools can help customers quickly and easily find the information they need, and also enable your agents to provide personalised recommendations and assistance.
Why is Improving Customer Experience so Important?
There a several reasons why you should be prioritising improving customer experience, including:
Increased customer retention/LTV
One of the key reasons why improving customer experience is so important for businesses is because it leads to increased customer retention and lifetime value (LTV). According to a report by Harvard Business Review, acquiring a new customer can be anywhere from five to 25 times more expensive than retaining an existing one. Additionally, existing customers are more likely to buy from a business than new ones, and are also more likely to refer others to that business.
By providing an exceptional customer experience, you can foster customer loyalty and keep customers coming back.
Reduced customer churn
Another reason why improving customer experience is important is that it helps to reduce customer churn. Customer churn refers to the rate at which customers stop doing business with a company. It is a critical metric for any business as it directly impacts revenue and growth. According to a report by Forrester, improving customer experience can reduce customer churn by as much as 15-20%. This is because customers who have a positive experience are less likely to switch to a competitor.
Improved ROI
Improving customer experience can also have a positive impact on a company's return on investment (ROI). According to a report by Temkin Group, companies that earn $1 billion annually can expect to earn an additional $700 million within three years of investing in customer experience. This is because a better customer experience leads to increased customer loyalty, which in turn leads to increased revenue and profits.
Additionally, companies that provide exceptional customer experiences are more likely to receive positive word-of-mouth referrals, which can lead to new customers and increased revenue.
Minimised costs
Improving customer experience can also help to minimise costs for your business. This is because it is often more expensive to acquire a new customer than it is to retain an existing one. By focusing on improving customer experience, you can reduce customer churn, which in turn reduces the need to invest in costly marketing and advertising campaigns to attract new customers.
Furthermore, businesses that provide an exceptional customer experience are more likely to receive positive online reviews, which can help to attract new customers without the need for additional marketing spend.
Improved customer satisfaction
Finally, improving customer experience is important because it leads to improved customer satisfaction. According to a report by PwC, 73% of consumers say that a positive customer experience is a key factor in their purchasing decisions. A further 65% of consumers say that they are willing to pay more for a better customer experience.
By focusing on providing an exceptional customer experience, you’ll not only increase customer loyalty and retention, but also attract new customers who are willing to pay more for a better experience.
What Types of Tools Can Help Improve CX?
CX is multifaceted and, as such, there are numerous tools you can use to improve it. Some of the most common include:
CRM systems
Customer relationship management (CRM) systems are essential tools for managing customer interactions and data. They provide your business with a centralised platform to manage customer interactions across various channels, including phone, email, social media, and live chat. CRM systems also enable you to track customer behavior, purchase history and preferences, which can help your agents personalise their interactions with customers.
CRM systems are particularly beneficial for businesses in the banking, finance, auto finance, utilities, and telecom industries, where customer data is critical for delivering bespoke services. With a CRM system, you can ensure customer information is up-to-date, accurate, and accessible across all channels, which can lead to more meaningful interactions and better CX.
Screen sharing software
Screen sharing software allows customer service agents to share their computer screens with customers, enabling them to collaborate and troubleshoot issues in real-time. Screen sharing software can be especially useful in the finance and banking industries, where customers may need assistance with complex financial transactions in a timely manner.
Screen sharing can also help customer service teams build trust with customers by providing a more transparent and collaborative experience. Customers can see the actions that agents are taking on their screens, which can help to build confidence and reduce frustration.
Co-browsing tools
Co-browsing tools are similar to screen sharing software, but take it a step further by allowing customers and agents to browse the same website or application simultaneously. Co-browsing can help agents provide more personalised support to customers, as they can guide them through the steps of a transaction or troubleshoot any issues in real-time.
Heatmap tools
Heatmap tools allow you to analyse user behaviour on your website, tracking where customers click and how they navigate the site. By analysing this data, you can identify areas where customers are experiencing friction or difficulty, allowing you to optimise your website for a better customer experience.
By identifying areas of frustration and optimising the user experience, businesses can reduce customer churn and increase customer satisfaction.
Analytics
Analytics tools allow you to track and analyse customer behavior across various channels, providing actionable insights into customer preferences, interests, and behaviour. By analysing this data, you can identify opportunities for personalisation and tailor agent interactions with customers accordingly, resulting in a more positive and engaging experience that aligns with customer expectations.
Chatbots
Chatbots are automated tools that can assist customers with basic queries and tasks, such as account balance inquiries or password resets. Chatbots can provide 24/7 support, reducing wait times and improving overall customer satisfaction.
Chatbots are largely useful in situations when customers may have simple queries that can be easily resolved through automation. By freeing up human agents to handle more complex inquiries, you can improve efficiency and reduce costs while still providing excellent CX.
Customer feedback surveys
One of the most effective tools for improving CX is feedback surveys. They help you collect customer feedback and insights directly, enabling you to better understand your customers' needs and preferences. Customer surveys are especially valuable for businesses that are looking to improve CX by enhancing customer service, products, or services specifically.
When it comes to customer insights surveys, there are a variety of formats and multiple channels to choose from, including online, email, and phone surveys. Online surveys are the most common and convenient option, as they can be easily distributed through email or social media. However, you should be careful not to overload customers with too many survey requests, as this can lead to survey fatigue and a decline in response rates.
In addition to the format, the design of the survey questions is also crucial. Survey questions should be clear, concise, and relevant to the specific customer journey or experience you are looking to improve. Open-ended questions can provide valuable qualitative feedback, while closed-ended questions with rating scales can provide quantitative data.
Once the surveys have been completed, you should spend considerable time analysing the data to identify trends or patterns. This information can help you make data-driven decisions and prioritise areas for improvement to enhance the overall CX.
What Tools Can Lightico Offer to Improve CX?
At Lightico, we provide a range of customer service tools and solutions designed to help businesses improve their customer experiences. From screen sharing and co-browsing to customer feedback software and analytics tools, our customer experience software solutions are tailored to the unique needs of businesses across various industries. If you're looking to improve your CX and provide your customers with a more personalised, efficient, and enjoyable experience, contact us today to learn more about how our solutions can help your customer service team provide exceptional service that results in increased customer loyalty.
