You definitely remember a situation when you left a store with a firm promise you would never return there. Or perhaps that moment when you deleted an app after a frustrating customer service? People remember how they are treated, and this is customer experience in action.
For businesses, getting this right isn’t optional. Studies show that 86% of customers are ready to pay more for a better experience. On the flip side, poor experiences cost companies billions annually, as 32% of customers will leave a brand they love after just one bad interaction. Why does this matter so much and how to improve things? Let’s find out!
Why bad customer experience is killing business
Modern world offers endless one-click alternatives to consumers. So, the experience you deliver becomes your key differentiator. A great product will help you attract a customer, but it depends on your further actions whether they will come back and recommend you to others. Every touchpoint is a chance to build trust or lose it. Frustrated customers often share their bad experiences online. Negative interactions lead to lost sales, bad reviews, and damaged reputations. Businesses struggle to attract and retain customers after they were publicly shown in a bad light. It’s hard to believe, but the real cost of bad customer experience is $75 billion in lost sales.
How to improve customer experience
When you care about your customers, you care about your business first. Happy customers equal loyal customers who share positive word-of-mouth and build your brand reputation. How to turn them into your advocates? Follow these strategies:
Understand your customers
Ask yourself how well you know your customers. Can you immediately draft your average buyer? If not, you should create customer personas to learn their shopping habits. Use various surveys, feedback forms, and social media listening. Additionally, analyze purchase history and website behavior to see patterns. Look at Amazon–the platform personalizes product recommendations and offers targeted deals.
A tip. Add a feedback form with three questions. Ask them what they liked, what didn’t, and what they would improve.
Provide exceptional service
Think beyond basic customer service. Train employees to be empathetic, proactive, and helpful. Encourage them to resolve customer issues quickly and efficiently, even if it means going the extra mile. You can also set response time standards for different types of inquiries and create a knowledge base of common issues and solutions. Etsy provides excellent support for both buyers and sellers, with an easy-to-use dispute resolution system and a dedicated help center.
A tip. Create a “service recovery kit” with possible solutions that employees can use immediately when problems arise.
Personalize interactions
This approach makes customers feel special. Use data to customize every interaction—greet them by name, suggest products based on what they have bought before, or create offers that may be interesting for them. Even simple gestures like a personalized email or a handwritten thank-you note can leave a big impression. Starbucks’ mobile app remembers customers’ favorite drinks and offers rewards based on their preferences.
A tip. You will need a customer relationship management (CRM) system to track all their interactions and personalize communication.
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Omnichannel support
Let your customers reach you through any channel they want. Modern consumers may use phone, email, chat, or social media. Integrate all these channels into one system for seamless communication. Apple provides consistent omnichannel support through its online store, Apple Store app, in-store service, and social media platforms. Customers can start troubleshooting their device online and continue the conversation in-store with an employee.
A tip. Your team must have access to a unified communication dashboard and view all customer interactions in one place.
Invest in technology
Chatbots, AI-driven analytical tools, invoicing software and self-service portals will streamline your everyday operations and improve responsiveness. Technology can handle routine tasks and free up your human employees for other tasks. Choose user-friendly technology that makes it easy for customers to interact with your brand. Zara integrates RFID technology into their inventory system to improve stock management and provide real-time product availability updates to customers, both online and in-store.
A tip. Before you spend money on technology, test it with a small group of loyal customers and gather their feedback.
Train your employees
Invest in customer service training programs that equip employees with the knowledge, skills, and tools they need every day in their work. Create a structured onboarding program covering both technical skills and customer service principles. Additionally, use role-playing exercises to practice common scenarios. Chick-Fil-A restaurant network trains its staff to create a friendly atmosphere – they smile, make eye contact, and greet each customer personally.
A tip. You can create a weekly 15-minute training ritual where teams share one customer service success story and one lesson learned.
Build lasting relationships
It takes time to build trust and loyalty takes time but it always pays off. Show customers they matter – follow up after purchases, offer rewards programs, or simply send thank-you messages. These little things build emotional connections. Create communities around your brand where customers can connect. T-Mobile rewards loyal customers – they receive exclusive perks such as free movie tickets, extra data, or discounts on services.
A tip. Create a calendar of customer touchpoints and find special dates when you can offer them a discount or some other incentive.
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Track KPIs and improve your strategies
Remember to track key performance indicators (KPIs) to learn how your customers feel and where you can improve. These are Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), Customer Effort Score (CES), Customer Lifetime Value (CLV), and Customer Churn Rate. These numbers actually tell a story. For example, if your NPS drops, it shows areas where your product or service needs attention. If CES rises, it signals your processes are too complicated for customers. When you know these issues, you can make smarter decisions to improve the customer experience and grow your business.
Final thoughts
Great customer experience is a journey, not a one-time thing. In a world where products are similar, how customers feel is what makes you stand out. The businesses that succeed in the future will be the ones that focus on customer experience today. As Maya Angelou said, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
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