How to Build Customer Experience (CX) Strategy in 2022 (2022)

The rise of digital transformation has brought a much more informed customer base with higher expectations. Modern-day businesses must prioritize having a strong digital customer experience (CX) strategy as the key differentiator to woo their customers.

As per theWalker study, “Customer experience will overtake price and product as the key brand differentiator in coming years.”

A great CX strategy requires a customer-centric mindset and intensive planning. Having a sound digital experience strategy requires working across all business functions with an omni channel approach in mind. Let us start with what it means, why is it important, and best practices of how to improve customer experience.

How to Build Customer Experience (CX) Strategy in 2022 (1)

Source: CSP

What is Customer Experience (CX) Strategy?

Customer experience (CX) strategy refers to the holistic perception of the experience of customers with your brand.

A great customer experience results from customer-brand and customer-customer interactions at touchpoints across all channels as they move through the various customer journey stages, from awareness, evaluation, and progress to purchase and post-purchase scenarios.

Each and every brand action impacts customer perception and their decision to retain your business or not. Thus, having great customer experience management is your key to success.

How to Build Customer Experience (CX) Strategy in 2022 (2)

Source: stratmetrix

Why Customer Experience (CX) Management is Important?

Having a well-designed customer experience management framework can have a significant impact on any business. The better experience your customers have, they are highly likely to give positive reviews and share with their circle of friends, while simultaneously reducing the friction of customer complaints.

The key benefits of increased customer experience are as follows:

  • Reduce customer churn A 5% increase in customer retention can increase profits by 25% to 95%. The businesses that focus on solving customer queries proactively through personalized conversations reduce churn and increase retention.
  • Increase customer lifetime value (CLTV) – Businesses that focus on reducing churn and delight the existing customers increase the lifetime value of customers. The longer you can keep customers, the greater is the provided value during their lifetime relationship with your brand.
  • Boost client satisfaction rate – When customers have a positive experience with your brand, their satisfaction level increases. They share their experiences online as well as with friends and relatives with good word of mouth.

What Makes a Great Customer Experience?

A great customer experience happens when you create an organization that is aligned around the singular mission of delighting the customers. Excellent CX happens across all the customer touchpoints when they were “wowed” by an interaction with a business.

We need to train our employees on how to execute their tasks, and how to adhere to the company’s culture. Equally, it is vital to train them to ensure that they know what is expected of them when it comes to how their role impacts the customer experience.

(Video) CX Summit 2022 - Crafting a Total Experience Strategy

The key elements that contribute towards an amazing customer experience are:

  • A timely response is crucial: Prompting acknowledging customer concerns with effective solutions has a great impact in delivering an excellent customer experience.
  • Effective communication: Making good communication skills part of the customer experience strategy delivers an effective customer service experience.
  • Omnichannel matters: Businesses must provide easily accessible information via multiple channels like websites, social media in order to deliver anomnichannel customer experience.
  • Maintain the human touch: Your service agents are critical to your customer’s experience. They represent your brand, and in order to delight customers, it is imperative to train your reps to have meaningful engagement with your customers and to equip them with the information they need to create seamless transitions between the online and in-person experience.
  • Go above and beyond: Seize opportunities to do more than you have to by turning bad experiences into positive ones by quickly fixing their issues.

Key Differences: Customer Experience v/s Customer Service

The customer experience (CX) is abroader concept as compared to customer service. It applies across marketing, sales, support, and also operations functions. While happy customer service is all about delivering good service, it is just one part of the entire customer experience model. There are specific touchpoints in the whole experience, where a customer reports an issue and seeks assistance.

Whereas, customer experience is the overall perception of your customers based on the touchpoints throughout their journey. It includes each and every interaction customers have with your brand, whether it’s the moment they first hear about you or reach out to your support team for any query.

How to Build a Solid Customer Experience Strategy (Best Practices)

Keeping your customers happy should be one of the main goals of your customer experience strategy if you want to retain them. An Oraclesurvey showed that “60% of the participants didn’t mind paying more for better customer experience.” When you deliver great CX, you can turn them into your best brand advocates and also set business transformation examples.

  1. Define a clear customer experience vision
  2. Build a strong team to increase customer experience
  3. Invest in the right system and tools to level up customer experience
  4. Use artificial intelligence (AI) for a better customer experience
  5. Measure your customer experience metrics
  6. Incorporate customer feedback for continuous improvement

Let us discuss customer experience best practices and also learn innovative ideas to increase the CX management strategy.

1. Understand your audience & create buyer personas

The key to making your brand stand out is to be indispensable to your consumers by understanding your consumers. If you have a deep understanding of what your consumer is looking for, what satisfies them, and what they value, you have a chance of turning their interest into true brand loyalty.

71% of companies that exceed their revenue and lead goals use buyer personas.

Gathering and segmenting data are great starting points in understanding the target audience. With the right efforts, you can apply a filter to ask overarching questions.

  • Exactly who are my customers as individuals?
  • What motivates them?
  • What do they want to achieve?
  • What are the fundamental causes of satisfaction?

Handling these questions requires a concerted analytical effort, which helps businesses to design and implement an advanced customer experience strategy to achieve its goals.

How to Build Customer Experience (CX) Strategy in 2022 (3)

Source: Red fern

It also helps to craft buyer persona in order to personalize your marketing on a large scale by humanizing core target groups of your customer base. Emarketer survey found that more than half of consumers expect companies’ offers to always be personalized.

Thus, understanding your target audience and mapping customer journeys to identify all touchpoints, channels, and moments in which a customer interacts with the brand helps to deliver great customer experiences.

2. Define a clear customer experience vision

Your customer experience strategy indicates your business goals and values! It is about how you want your customers to think about your brand. They must be clear on the fact how your brand handles the vital components that constitute your CX vision.

(Video) 2021 customer experience strategies (new study)

  • Customer support – Convey what are the strategies or approaches followed by your business to deliver a superior customer service experience.
  • Mapping customer journey – How you consider all the touchpoints across the customer journey to gain insights on their behavior to deliver personalized assistance.
  • Interactions – When customers interact with your business, how they feel about it as a brand.

So, customer experience should be an integral part of your vision. It helps to bring out the best CX value. Customer experience value allows brands to recognize customers’ value at the point of contact and decide how to maximize that value through dynamic, personalized treatment to deliver the best experience possible and generate the maximum return on their efforts.

In the above context, developing a customer experience vision is a vital step to transform the ways your business provides services to its customers. The vision outlines the principles to guide and inform the experience they deliver.

Creating a clear roadmap helps to serve as good ideas to enhance the customer experience across all the channels. It drives user engagementand delivers results for your business.

3. Build a strong team to increase customer experience

Building a strong team is all about people. The brands that deliver great customer experiences do so with purpose. They focus on building the best team by combining skills, influence, and knowledge. It proves to be an innovative idea to enhance CX.

How to Build Customer Experience (CX) Strategy in 2022 (4)

Tips to boost your customer experience strategy:

  • Equip your team with the right skills – Having a dedicated technical support team helps to address customer queries and complaints effectively. Empowering your team with the right skills helps to deliver better customer experience.
  • Adequate knowledge training – Share knowledge effectively about your products & services with your teams. Make sure to acknowledge and advise your support team when there is a product or service upgrade. Along with that, you have to upgrade the knowledge base to deliver a great customer experience.
  • Effective communication – Provide interpersonal training to your team like to be patient, empathetic, or using positive sentences to make the customers feel special and trust that their problem will be resolved. Following effective communication guidelines, while interacting with customers ends up with positive results.

A strong team is what makes a great customer experience. The teams need to work together to establish a great CX vision along with experience goals that align with business goals and are feasible within the existing technology platform.

4. Invest in the right system and tools to level up customer experience

Deploying the right systems and tools is one of the best practices on how to increase customer experience. By investing in proactive communication channels you can enhance customer communication and experience.

Choosing and implementing the right tools is important to encourage customers to have greater interaction with your brand. However, the end goal is to fulfill customer expectations and make them feel happy.

Brands focusing to increase customer experience should add on digital tools along with the traditional ones to engage customers. Using specific tools also helps to respond timely, monitor customer behavior, and take proactive actions. They also help to handle customer complaints faster and provide effective solutions.

The tools that can play a lead role in your CX strategy are as follows:

  • Live chat – Investing in live chat helps to provide immediate answers to sales and support queries and boost customer satisfaction. It provides valuable insights on the customer journey that helps you to provide personalized engagement leaving customers satisfied.
  • Real time customer engagementCollaborate with your customers’ browser with co-browsingand guide them through the complex process. Have direct interaction with video chat to identify issues faster and deliver effective solutions, thus reducing touchpoints and creating great customer engagement examples.

REVE Chat is an excellent live chat platform that delivers real time assistance to sales and support queries across multiple channels. Sign up with REVE Chat and boost your customer experience by offering excellent support 24×7.

5. Use artificial intelligence (AI) for a better customer experience

The customer experience landscape redefined by Artificial Intelligence (AI). Chatbots can help businesses dramatically enhance their customer experience and achieve faster growth. Invespro says, “Chatbots can save up to 30% in customer support costs and can help businesses by speeding up response time and answering up to 80% FAQs”.

Implementing a chatbot plan is the best solution to handle simple customer queries on the first go. But when it comes to complex queries bots fail to answer, and it directs the conversation to the right human agent.

You can provide customers the best experience of both worlds, with the chatbot managing the simple queries and human agents handling complex conversations.

(Video) Start Planning for 2022 With These 3 Customer Experience Strategies

How AI chatbots can boost customer experience?

  • 24×7 support – Automating customer support with bots helps you to engage customers round the clock to answer their simple queries. Chatbots are the best option to manage FAQs when your support team is not available.
  • Lesser support tickets – Bots are capable of answering information-based queries in real time, which reduces the number of support requests raised.
  • Auto collect customer information – Using chatbot as the first contact for customer support can also help to collect basic customer details such as name, email, etc. that are further analyzed and processed as per requirements.
  • Highly scalable – Bots can be easily scaled during peak time or when your support team is busy to provide good quality support in real time without additional costs of hiring agents or infrastructure.
  • Human handover for complex queries – When chatbots are not able to answer any query due to its complex nature, it is transferred to the right support agent for effective resolution.

Example to boost customer experience

FundsTiger ChatBOT launched a conversational BOT that can help customers to know more about Business Loans, Personal Loans as well as help a user file a Business/Personal Loan application in the course of these conversations.

How to Build Customer Experience (CX) Strategy in 2022 (5)

The chatbot was a part of their customer experience design strategy. The simple messaging transforms into a rich personalized experience, enhancing ‘Natural Interface’ conversations for borrowers delivering real-time responses, timely and relevant information for their credit financing needs. Thus making customer experience management successful.

6. Measure your customer experience metrics

Forrester says, “Companies are increasingly using customer analytics techniques like customer satisfaction analysis, customer engagement analysis, and customer journey analytics to understand and enhance the client experience.”

Measuring customer experience is vital for every business. It helps to understand how well your business is performing and customers’ perception of your products & services. 21% of companies have developed their own KPIs to track customer experience.

It is critical to measure CX systematically, comprehensively, and efficiently by using the right metrics in the customer journey.

The key customer experience (CX) metrics are as follows:

  • Customer satisfaction score (CSAT) – Measuring satisfaction helps to gain customer insights and what customers think about you. CSAT metric involves the explicit capture of survey questions asking about their satisfaction of using the product or service.
  • Net Promoter Score (NPS) – NPS metric measures customer experience and finds out how likely your customers are to recommend you to their friends and relatives.
  • Customer effort score (CES) – CES metric evaluates customer experience with your products or services. You can measure ease of experience with your company by asking customers, on a 5 point scale of “Very Difficult” to “Very Easy”.

How to Build Customer Experience (CX) Strategy in 2022 (6)

Best practices of how to grow your customer experience:

  • You can segment your customer based on their loyalty to send them customer satisfaction surveys to understand how they feel about your brand as a whole.
  • Based on survey results, you can reach out to your passive customers to solve their issues before they leave you.
  • You can escalate the feedbacks provided by the passive customers to the right team so that those issues can be taken care of quickly.

7. Incorporate customer feedback for continuous improvement

The key objective of every business is to please customers, satisfy their needs, and eventually to keep them loyal to your brand. But how can you be sure that your efforts bring desired results?

If you do not figure out what your customers perceive about your brand, you will not be able to give them the best customer experience. Their feedback & opinions about the experience they have with your brand are helpful information that you can use to adjust your business to match their needs more accurately.

How to Build Customer Experience (CX) Strategy in 2022 (7)

Source: Survicate

Incorporating feedback should be a vital part of customer experience strategy as they provide information about their experience with your brand. They also act as the best resources for improving customer experience and adjusting your actions to their needs.

(Video) 10 Customer Experience Trends for 2022, by Steven Van Belleghem

How does valuing customer feedback help to increase customer experience (CX)?

  • Customer feedback is an insight into what is working well about your product or service and what should be done to make the experience better.
  • The clients’ opinion help to ensure if the end product will actually meet their expectations, solve their problems and fulfill their needs.
  • Asking feedback communicates to customers that their opinion is important and they are involved in shaping your business so they feel more attached to your company.
  • Listening to their voice helps you create stronger relations with them. It is the best way to gain valuable brand advocates who will spread positive word-of-mouth for you.
  • Feedbacks are reliable sources for tangible data that further can be used in taking business decisions. Customer insights will help you understand clients and their needs more profoundly.

Customer experience (CX) management examples

Delivering great customer experience is all about perfectly balancing your strategy with the right tools. Additionally, brands have to create and measure satisfaction across every channel to help build relationships and stand out from the competition and set a perfect example of customer experience (CX) strategy.

Customer experience management example#1

Vodafone UK developed a graphical and interactive representation of its network performance to simplify the technical subject for customers.

What did they do?

  • The objective was to minimize network related queries into the call center and create a system for communicating planned outages to those customers affected.
  • The tool should be easy to maintain and hold the ability to update in real time, 24×7. It should also improve network-specific T-NPS scores.

The users can now register their email address with the system that sends an email to those registered after the issue is reported.

Significant results:

  • 40% increase in visitor traffic since launch
  • 9% reduction in network-related complaints
  • 54% reduction in escalated queries requiring a customer call back

Customer experience management example#2

After facing its first billion-dollar loss, Australian Airline Qantas streamlined its operations to turn things around and invested in new technology as a part of the customer experience strategy.

What did Qantas do?

  • They started offering free Wi-Fi on flights, a rare privilege in the airline industry
  • Enabled a faster, streamlined baggage check-in process.

Starting from flight booking to checking a bag, every aspect of a customer’s journey with Qantas has enhanced. Its loyal customers advocate Qantas as the most trusted airline company in Australia and the best business airlines for domestic travel.

Customer experience management example #3

Airbnb conducts a survey for its customers to map their overall customer experience.

It politely asks for customers’ opinions after their stay, giving them the space to decide whether they want to share their feedback or not.

How to Build Customer Experience (CX) Strategy in 2022 (8)

The survey conducted by Airbnb had a significant increase in the number of bookings by 25%, just with their referral program alone.

Having a great customer experience (CX) strategy is the first step

Planning an effective customer experience strategy is about more than just ensuring your customers receive the products and services they desire in an efficient manner. Every business should realize the importance of keeping their customers happy and satisfied.

(Video) Customer Experience #CX - Implementation Strategies

When you deliver effective customer experience, it creates great value for both customers and businesses. REVE Chat is one the best live chat platform that helps to business to create the same. Sign up with REVE Chat and explore the features that will empower your team to provide a great experience to clients.

The experience value created allows businesses to identify the customer value when they make a contact to decide how to maximize that value through personalized service to ensure maximum customer experience RoI.

FAQs

What are the 5 parts of the customer experience cycle? ›

What Are the 5 Stages of the Customer Life Cycle?
  • Reach or Awareness. During this phase, a consumer becomes familiar with a company's goods or services for the first time. ...
  • Acquisition or Consideration. ...
  • Conversion and Nurturing. ...
  • Retention. ...
  • Loyalty or Advocacy.
10 Aug 2022

What does a good CX strategy look like? ›

A CX strategy comprises the plans you put in place to provide positive experiences at each customer touchpoint along the customer journey and the purposeful ways to measure those experiences – both online and off. A good CX strategy creates meaningful experiences that can improve customer loyalty.

What are the three customer experience CX guiding principles? ›

Customer experience can be divided into three parts: single interaction, customer journey, and lifetime relationship.

What is a CX framework? ›

It is a blueprint that determines the tools, procedures, and techniques for better CX. April 4, 2022. Strategy. Modern companies must always strive to deliver high-quality customer experiences (CX) – however, research suggests that most are falling short.

What are CX strategies? ›

Customer experience (CX) strategy encompasses all of the plans that a company makes to ensure positive, high-quality customer experiences. Customer experience spans all of the interactions between a business and its customers. More specifically, CX is defined by how customers feel about those interactions over time.

What are the 4 phases of customer flow? ›

Customer Lifecycle Stage: Acquisition, Conversion, Retention, Loyalty.

What are the four pillars to create a customer journey? ›

New research reveals that focus, simplicity, “digital first,” and perceptions matter most.

How many CX principles are there? ›

10 principles for customer experience transformation.

What is CX and innovation? ›

Innovation in CX is not about making the customer buy more, faster. It is about better tailoring experiences and journeys to create a syncopation between the rhythms of the customer to the rhythms of the brand.

What is CX performance metrics? ›

The Customer Experience Metrics are the KPIs the business follows that involve customers' input. These metrics help you in understanding how loyal or satisfied your customers are. The most popular customer experience metrics include Net Promoter Score, Customer Satisfaction, and Customer Effort Score.

What are CX deliverables? ›

In the day-to-day, CX Designers generally focus on the big picture. Their deliverables are a combination of research documents, presentations, data visualizations, journey maps, and wireframes.

What is CX transformation? ›

The simple definition is that customer experience transformation is the practice of streamlining sales and service processes within your business to improve customers' interactions with your brand.

What are CX capabilities? ›

Customer experience (CX): “How customers perceive their interactions with your company” Customer experience management (CXM): “The collection of capabilities and processes used to systematically design, deliver, and react to customer interactions”

How do you build a customer experience center? ›

The following is a ten step process to creating a great CEC.
  1. Who is your customer experience centre audience? ...
  2. Define what you want your audience to get from the visit. ...
  3. Define the journey types. ...
  4. Design your customer experience centre strategy. ...
  5. Audit your assets. ...
  6. Choose your technology wisely.
25 Jun 2018

What is a good CX? ›

Great CX means customers are treated right and treated well

That's whether they are internal, external, partners or stakeholders. Brands who demonstrate they care for their customers and understand their emotions are more likely to be rewarded with preference, advocacy, spend and trust.

What makes the best customer experience? ›

In short, good customer experience can be achieved if you: Make listening to customers a top priority across the business. Use customer feedback to develop an in-depth understanding of your customers. Implement a system to help you collect feedback, analyze it, and act on it regularly.

What three practices are being used in creating consumer experiences? ›

  • expectations.
  • engagement.
  • experiences.

How do I start a CX program? ›

5 steps to launching and running an effective customer experience program
  1. Be the change agent your company needs. ...
  2. Start with a high priority customer experience. ...
  3. Gather data on the customer experience. ...
  4. Uncover actionable customer experience insights. ...
  5. Enable ongoing customer experience improvement.

How do you write a customer service strategy? ›

How to create a customer service strategy
  1. Define your vision for customer service. ...
  2. Promote a customer-centric company culture. ...
  3. Create a customer journey map. ...
  4. Set measurable customer service goals. ...
  5. Build your customer service team. ...
  6. Use the right tools. ...
  7. Empower your customer service agents. ...
  8. Take advantage of feedback.
20 Jan 2022

What is CX performance metrics? ›

The Customer Experience Metrics are the KPIs the business follows that involve customers' input. These metrics help you in understanding how loyal or satisfied your customers are. The most popular customer experience metrics include Net Promoter Score, Customer Satisfaction, and Customer Effort Score.

Does CX mean customer? ›

Customer experience, or CX, is the overall perception a customer has of your brand after interacting with your business across the buyer's journey. From marketing, to sales, to customer service – CX is the sum of all touchpoints and can impact a customer's decision to return to your brand.

How do you assess customer experience? ›

CX metrics are the key to effectively measuring the customer experience. You can use a combination of surveys, retention and churn rates, and customer trend data to determine how satisfied your customers are at every step of the journey — and whether or not they're willing to come back or refer your brand to others.

How can I improve my referral marketing? ›

8 best referral marketing strategies
  1. Know when and how to ask for referrals. ...
  2. Go beyond customer expectations. ...
  3. Create community around your brand. ...
  4. Offer strategic referral incentives. ...
  5. Tap into social media. ...
  6. Use email marketing to promote referrals. ...
  7. Make it easy for people to refer. ...
  8. Use referral links.
20 Sept 2022

What are 4 P's of service strategy? ›

ITIL discusses at length the four “Ps” of strategy- perspective, position, plan and pattern, each of which represents a different way to approach your service strategy and not to be confused with the 4 P's of ITIL Service Design.

What are the 7 qualities of good customer service? ›

7 Must-Have Qualities of a Stellar Customer Service Rep
  • Problem-Solving Skills. The number one skill you need to excel in for good customer service is problem-solving. ...
  • Clear Communication. ...
  • Friendly Attitude. ...
  • Empathy. ...
  • Business Acumen. ...
  • Product/Service Knowledge. ...
  • Strong Time Management.

What are four customer service strategies? ›

4 Strategies to Help Improve Your Customer Service Standards
  • Seek Customer Feedback. To provide excellent customer service, you first need understand their needs, experiences, and pain points. ...
  • Strengthen Your Customer Service Team. ...
  • Use CRM Platforms. ...
  • Leverage Multi-Channel Servicing. ...
  • Final Thoughts.
12 Aug 2018

What is CX transformation? ›

The simple definition is that customer experience transformation is the practice of streamlining sales and service processes within your business to improve customers' interactions with your brand.

What is CX integration? ›

Dialogflow CX currently provides several built-in integrations with other conversation platforms. These integrations provide a user interface to the end-user, and they call the Dialogflow API for you. All you need to do is build your agent and optionally implement a webhook service.

What are CX critical success factors? ›

Three success factors can make or break a CX initiative: cooperation, integration and enterprise planning and support.

How do you measure KPI for customer experience? ›

To calculate this, you need to start with a survey where you can ask how customers feel about a certain product or feature. Then, the satisfaction score is calculated by dividing the number of customers who are 'happy' with the product or feature by the total number of people who answered the survey.

What is KPI for customer service? ›

Customer Service Key Performance Indicators and Metrics

A customer service KPI or metric is a performance measurement that is used by customer service teams and by the customer support management to monitor, visualize, analyze and optimize customer relations by taking advantage of an advanced 360-degree customer view.

Videos

1. How to Build a Customer Experience Strategy by Starting With a CX Mindset
(Jeannie Walters)
2. Working Solutions' 2022 Customer Experience CX Trends
(Working Solutions)
3. The 6 pillars of the Customer Experience Framework - An introduction
(Nienke Bloem)
4. Customer Experience Strategy 2022
(Jesper Lowgren)
5. The 6 Top Customer Experience (CX) Trends Every Company Must Get Ready For Now
(Bernard Marr)
6. B2B CX Strategies for Consumer Goods Companies - Top B2B Customer Experience Strategies
(DASCX)

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