Customer Satisfaction Vs Customer Experience in the Digital Age
Running a business differs from selling your products in the 20th century. It was the era when most of the world population had no exposure to the fashion trends of their neighboring countries. People used to buy things according to their needs and affordability. But now the times have changed. In the 21st century, consumers are the ones who can build or deface any business, if not taken care of their requirements appropriately. So, the customers are the boss, and if we ignore the ways that pursue our consumers to leave a five-star rating, we cannot hope for better. That is why we need to understand the difference between customer satisfaction and customer experience.
The customer experience begins when they use your products. For example, you go to a hotel and reserve a room. Their lounge, how they speak to you and offer you discounts or good room service, good food, and so on so that when you leave you are happy, is customer satisfaction. And you'll want to return it whenever you need it.The consumer-brand relationship evolves in stages, beginning with likeness and progressing to fondness and adoration. With the help of digital platforms, this relationship can become much more substantial
A survey was done to determine what brands' priorities would be in the next few years. In the survey, more than 1900 business owners were asked this question, and their answer was, "Customer Experience." So why are companies interested in improving their customer experience? The answer is in another research done by American Express, where they found out that customers who are ready to spend money for a better customer experience constitute 86 percent. It means that customer satisfaction is the key to being a successful business model.
In my personal experience, I have seen many promising businesses that started with minimal setups but proliferated. All that happened because they focused on the consumer's needs. When it comes to customer satisfaction, they don't care about their revenues or profits. It developed client trust, and that helped them in expanding their business. Every customer is precious and giving them that special feeling can win you their loyalty faster than you imagine. And that's more than true for bad customer experiences. Well, if you think you are the top brand and have millions of followers and clients, one bad review cannot cause you any loss; think again because one terrible customer experience can get away your loyal customers in no time. According to a survey in Latin America, 49 percent of people said they would stop purchasing from their favorite brand even after one bad customer experience.
CX (Customer Experience) includes the overall user experience, from first contact to customer - and beyond if better customer loyalty is desired. It is also not entirely compatible with a good user experience (UX), though an easy UX of a website, app, or another medium may contribute to a good CX. A practical customer experience is data-driven. Creating a personalized, relevant, timely, and consistent customer experience across channels may appear challenging if we do not have the technology. Modern technology helps find the required data, which is the key to any customer satisfaction. For example, CRM is a software used by many companies to keep the record of their customers’ buying details and predict their future needs even before the customer realizes them. Based on previous purchases, the software recommends data-related products to you. You can send personalized marketing emails to customers to remind them about new purchases. The primary goal is to find a path toward designing and delivering high-quality customer experiences that drive business impact through using unified, enhanced data in the right ways. It is critical to start from scratch when developing your data strategy and program. It entails beginning with customer data and working your way up. As a result, there will be an increase in customer satisfaction.
Assume we have to pick a restaurant to celebrate New Year's Eve. What are your plans? It was simply a few years ago, but not anymore. We use Google, ask our friends for advice, and go to some places. The more positive feedback we receive about a location, the more likely we will choose it. As an intelligent business owner, you must use behavioral nudges in the accordion to individual chives. Customers will appreciate it if they believe you prioritize them. Most of the time, people do not have complete access to all the information they require. That is where a good business owner can gain an advantage by implementing behavioral choice architecture and making it easier for customers to decide.
Always remember people don't like complicated situations, and as a seller, you have to facilitate them, or we can say you should pamper them. The more they depend on you, the more benefit you will get. For example, on New Year’s Eve, we all like to spend our time with family, so a good business owner knows it and will offer good deals and an atmosphere for a family party and offer it as if it is mainly done for you. People always make decisions based on the information available at the time of the decision. Your interventions based on decision information provision should improve access to decision-relevant information based on the decision maker's relevance. Another more effective approach is to provide social reference information, which reduces ambiguity in a situation and aids in the settlement of confusion about good behavioral outcomes.
Most of the time, the company's owners or managers are unaware of bringing Innovation and implementing new strategies by experimenting. Businesses cannot run on baseless guesses but on accurate data and well-researched techniques. And the good news is now we have multiple software to base our decision on scientifically valid experiments. It is illogical to take risks when having several competitors in the market who are busy making their customer's experience better. You have no choice but to do the same. The right way to make decision-making easier for your customer is first to design a hypothesis and see the result of how these changes will help you in your business. Before applying directly, you will test it on a small group and determine what you need to measure to produce a decisive result. That is what helps you in developing a customer-brand relationship. A customer-brand relationship is required for a company to stand out from the crowd.
Whenever I purchase something from an online store or website, I receive a message from the seller asking me to provide feedback. And I enjoy providing feedback if their customer service is excellent. I always like them and plan to buy from them again if they continue to provide me with good service. The same thing happens to all of us, which is why a successful business must cultivate a network of customer-brand relationships by soliciting feedback for improvement. The well-known Fournier's paper was the first to focus on the concept of the customer-brand relationship. It is believed that brands could develop consumer relationships if they focused on their psychosocial and cultural context. The only thing that matters is a longterm commitment from brands to prioritizing customer satisfaction. Shimp and Madden in 1988 applied Stemberg's "Triangular Theory of Love" to the relationship between a brand and its customers. The consumer-brand relationship evolves in stages, beginning with likeness and progressing to fondness and adoration. With the help of digital platforms, this relationship can become much more substantial.
Digital platforms are revolutionizing today's world, as we saw during the pandemic. Because of the advanced technologies used on digital platforms, businesses now have enormous opportunities to develop customer collaboration. I am not wrong in that assumption when I say that digital collaboration between businesses and their customers is critical to their survival right now. Technology connects the physical and virtual worlds, allowing businesses to operate more efficiently and connect with customers. Digital solutions are now the best transformation strategy because they can help address various business challenges. It can help businesses identify future trends and business opportunities and improve the customer and employee experience, leading to improved financial performance across the board. With this in mind, businesses are turning to digital platforms to help them begin or accelerate their transformation journey. While change is unavoidable, transformation is a deliberate choice businesses should make to provide better customer experiences and be the winners of tomorrow.
Another modern technology we talk about is AI or Artificial Intelligence algorithm. It is the best cheaper decision generator that is considered helpful for decision-making. It is much quicker and easier to research, verify, and replicate information with AI. You may want to ask how AI can be helpful for Customer experiences. When users want a personalized experience, AI is the best tool to make it possible. That is why I believe that when it's about growing brand recognition, AI is the game-changer that can provide users with an experience that is most relevant and personalized. And believe me, it works. Consumers love to do business with you if you provide them with a personalized customer experience and even make impulse purchases. So, who is the winner here? It's the brand. Those Companies that make strategies to enforce a customer experience effectively will achieve higher levels of customer satisfaction for them. It will decrease rates of customer churn and increase their revenues. Those who understand it now will indeed rule the business world in the future. For this, we need to understand the importance of experimentation in our marketing strategies to bring Innovation for better customer service.
Developing a culture of experimentation is a successful business strategy in which we use technology and do testing on a low level. You may have heard about booking.com as the world's biggest travel marketplace. They just started as a small set up a few years back, but one thing they did was develop a culture of experimentation in their business. They even perform 25,000 tests in a year. They experimented with technology for years and brought Innovation to the travel industry. Today they are the leading company for all digital travel brands and entrepreneurs. I understand that most of the time, cultural barriers are the biggest hurdle to experimentation and the use of technology. But there is no other way to win the race. Today, we need to create a friendly environment where experimentation should be a part of business strategies. In today's market, customer experience has evolved into person-to-person service. Brands can connect with their customers in new and exciting ways. Thanks to technology, it is accessible to covert customer experience into customer satisfaction.
Always remember people don't like complicated situations, and as a seller, you have to facilitate them, or we can say you should pamper them. The more they depend on you, the more benefit you will get. For example, on New Year’s Eve, we all like to spend our time with family, so a good business owner knows it and will offer good deals and an atmosphere for a family party and offer it as if it is mainly done for you. People always make decisions based on the information available at the time of the decision. Your interventions based on decision information provision should improve access to decision-relevant information based on the decision maker's relevance. Another more effective approach is to provide social reference information, which reduces ambiguity in a situation and aids in the settlement of confusion about good behavioral outcomes.
Most of the time, the company's owners or managers are unaware of bringing Innovation and implementing new strategies by experimenting. Businesses cannot run on baseless guesses but on accurate data and well-researched techniques. And the good news is now we have multiple software to base our decision on scientifically valid experiments. It is illogical to take risks when having several competitors in the market who are busy making their customer's experience better. You have no choice but to do the same. The right way to make decision-making easier for your customer is first to design a hypothesis and see the result of how these changes will help you in your business. Before applying directly, you will test it on a small group and determine what you need to measure to produce a decisive result. That is what helps you in developing a customer-brand relationship. A customer-brand relationship is required for a company to stand out from the crowd.
Whenever I purchase something from an online store or website, I receive a message from the seller asking me to provide feedback. And I enjoy providing feedback if their customer service is excellent. I always like them and plan to buy from them again if they continue to provide me with good service. The same thing happens to all of us, which is why a successful business must cultivate a network of customer-brand relationships by soliciting feedback for improvement. The well-known Fournier's paper was the first to focus on the concept of the customer-brand relationship. It is believed that brands could develop consumer relationships if they focused on their psychosocial and cultural context. The only thing that matters is a longterm commitment from brands to prioritizing customer satisfaction. Shimp and Madden in 1988 applied Stemberg's "Triangular Theory of Love" to the relationship between a brand and its customers. The consumer-brand relationship evolves in stages, beginning with likeness and progressing to fondness and adoration. With the help of digital platforms, this relationship can become much more substantial.
Digital platforms are revolutionizing today's world, as we saw during the pandemic. Because of the advanced technologies used on digital platforms, businesses now have enormous opportunities to develop customer collaboration. I am not wrong in that assumption when I say that digital collaboration between businesses and their customers is critical to their survival right now. Technology connects the physical and virtual worlds, allowing businesses to operate more efficiently and connect with customers. Digital solutions are now the best transformation strategy because they can help address various business challenges. It can help businesses identify future trends and business opportunities and improve the customer and employee experience, leading to improved financial performance across the board. With this in mind, businesses are turning to digital platforms to help them begin or accelerate their transformation journey. While change is unavoidable, transformation is a deliberate choice businesses should make to provide better customer experiences and be the winners of tomorrow.
Another modern technology we talk about is AI or Artificial Intelligence algorithm. It is the best cheaper decision generator that is considered helpful for decision-making. It is much quicker and easier to research, verify, and replicate information with AI. You may want to ask how AI can be helpful for Customer experiences. When users want a personalized experience, AI is the best tool to make it possible. That is why I believe that when it's about growing brand recognition, AI is the game-changer that can provide users with an experience that is most relevant and personalized. And believe me, it works. Consumers love to do business with you if you provide them with a personalized customer experience and even make impulse purchases. So, who is the winner here? It's the brand. Those Companies that make strategies to enforce a customer experience effectively will achieve higher levels of customer satisfaction for them. It will decrease rates of customer churn and increase their revenues. Those who understand it now will indeed rule the business world in the future. For this, we need to understand the importance of experimentation in our marketing strategies to bring Innovation for better customer service.
Developing a culture of experimentation is a successful business strategy in which we use technology and do testing on a low level. You may have heard about booking.com as the world's biggest travel marketplace. They just started as a small set up a few years back, but one thing they did was develop a culture of experimentation in their business. They even perform 25,000 tests in a year. They experimented with technology for years and brought Innovation to the travel industry. Today they are the leading company for all digital travel brands and entrepreneurs. I understand that most of the time, cultural barriers are the biggest hurdle to experimentation and the use of technology. But there is no other way to win the race. Today, we need to create a friendly environment where experimentation should be a part of business strategies. In today's market, customer experience has evolved into person-to-person service. Brands can connect with their customers in new and exciting ways. Thanks to technology, it is accessible to covert customer experience into customer satisfaction.
