Regardless of the Winds-of-Change, a Good Customer Experience is Always a Good Call

Posted on April 15, 2024

As we wade through the fog of predictions about the 2024 economy – inflation, interest rates, election year impacts, the fading of the COVID economy - it is increasingly difficult to identify the areas for most opportunity in gaining new customers and increasing loyalty of those already in the fold. Even analytic approaches, which many companies rely on to prioritize their marketing spending, are less confident when assumptions about how things are trending - in actuality or perceived by Customers - are shaky or outright wrong.

One surefire way to ensure your dollars are being well-spent is continued investment in Customer loyalty and improving the "Customer Experience". While it is a tried-&-true business axiom about the maximal value of nurturing Customer loyalty, we have seen greater pressure for businessesto hold onto Customers and their dollars, as buyers have more options – whether in delivery, pricing, discounting and where & how to buy, etc. -- for having their spending lured away.

Focusing on the Customer Experience - the notion that the way buyers “experience” our business in our intersections with them can lead to a favorable attitude towards our business - is central to achieving the goal of loyalty. It is this stripped-down view, the intent and focus that makes Customer Experience (“CX” as it is often short-handed) an essential and worthwhile mission for businesses.

Add on top, effective CX can work to not only capture more loyalty business, but can be an effective conversion tool once a new buyer enters our store and through a positive experience identifies our business as their preferred choice next time around.

As with the growth of analytics and digital marketing approaches over the years, technology is a great equalizer for small and mid-sized businesses in the ability to deliver a positive Customer Experience. The central need is defining the underlying strategy that understands who your customers are, what they are seeking, and how we believe our product or service can meet their need in the way we want cost-effectively associated with our brand.

So, where to start

- Think about the different customer types you serve: Typically, these are referred to as personas or profiles. Using available data, we can begin filling-out the picture of who these different Customer groups are. Perhaps we have a retail business where we have buyers who come into our establishment and also order online…or perhaps others that are exclusive to a particular channel or purchase type. Maybe ours is a business with many one-time visitors that we may want to convert to repeat customers through the experience we offer. While there are no doubt combinations and permutations of buyer types, typically 4-6 standard profiles are useful in gaining the understanding we seek to differentiate various Customer groups.

- Think about what these different Customer types seek: For each group, what do these buyers seek? Not just in choice of product or service, but in how they want it provided. Does it require close interaction? Does this customer seek a self-service approach? Are they price sensitive? Are they looking for many options or choices? Maybe time sensitive or perhaps ease in payment or access… Understanding these wants will help us to more closely provide an experience that satisfies a buyer while also being workable for our business.

- Implement and try different methods and approaches: Once an understanding is gained, it is time for action. This need not be all-consuming, all-encompassing and budget-breaking. Short of alterations which require structural changes – new equipment, facilities, etc. – most experience components can be experimented and trialed before deciding that we have the right formula for a buyer type. Perhaps it doesn’t make sense for a different experience for each buyer persona, so focusing on the most important buyer types, or bundling those with similar needs together, may make the most sense.

- Monitor and track: Buyers are not static; they change, their needs and wants change, and they are influenced by experiences outside of what your business does. Often referred to as the Customer Journey – to describe the road a buyer follows to purchase and advocacy—the word journey also describes for us, the journey we are on in uncovering, discovering and meeting our Customers’ needs in ways that satisfy them and builds our business.

As buyers and consumers, you are exposed daily to experiences good and bad, from large multi national enterprises to small local businesses. And while the customer experience provided to a large business-to-business buyer of a multi-million dollar manufacturing machine or software may have multiple steps, processes, and a multi-year timeline - complete with other influencers and a journey that crosses channels and departments - the basics of identifying the different buying groups and their needs, wants and expectations remain as central as it does for a local business selling to buyers whose purchases may be of much lower dollar amount and greater impulse. The tools may be different; the available data to create to profiles may be more vast and deep; but the intention is the same—how to provide this buyer with an experience to have them select us the next time they have the needs we are hoping to meet.

Ken Demma is a Customer-centric Marketing and Business professional with experiences ranging from global enterprises and well-known brands to local and small businesses. He is on faculty at Babson College, working with MBAs and entrepreneurs of all types, including businesses and government entities seeking out best practices and practical advice on growing their businesses.