Customers usually walk out from a store or log out from a website mainly because they experienced poor customer service, despite having found the product they want at the desired price. It becomes too hard to retain customers, especially online customers, now that there are plenty of options (competing or alternative products).
What is the relation between consumer experience and sales?
In a 2014 study, Harvard Business Review reported that 53% of companies believe customer experience (CX) management gives competitive advantage. Those who are leading in CX programs gained 100% increase in profits and 150% increase in customer retention as compared with laggards.
Enhancing user experience during online shopping is one of the keys to improving sales, Econsultancy.Com found out after conducting the User Experience Survey Report together with WhatUsersDo.Com. In the survey, at least 70% of respondents claim that improved user experience would help increase sales and increase customer satisfaction.
The same holds true in physical stores. Forrester.Com claimed that even a modest improvement in the hotel industry could result to $177 million to $311 million increase in sales.
What do the numbers mean?
It’s quite simple, actually. When there’s improvement in customer experience – whether it’s at a virtual store or at a physical store – there’s always an expected improvement in sales and profits. Customers want to shop where they enjoy the most.
This principle is of course not a new concept. But sadly, many businesses aren’t very profitable mainly because they have neglected the shopping experience of customers at their store or site.
Who is responsible for CX improvement?
Much of the responsibility is upon the Chief Marketing Officer, who must work with the entire organization to create continuous improvements and changes to the CX. This means that everyone in the organization has a role to play, but the CMO is in charge of leading the task.
At the forefront is the sales team who provide direct contact with customers. Sales representatives must handle customer inquiries and complaints with utmost respect and professionalism. The physical look and appeal of the store also play an important role. Conversely, the design and interface of the website must facilitate easy shopping.