As a startup owner, you would have to wear many hats, bearing many responsibilities. So, when someone brings up the topic of CX management, you might feel like it’s an impossible task.
But you would also be aware that nine out of ten startups are bound to fail, and you have to make it work somehow.
The truth is that the business world is unforgiving, and as a startup, it’s unlikely that you will get a second chance. So, it’s important that you bring in your A-game right from the start and make an impression that customers love.
In this regard, understanding your customer is the key to success. Customer Experience (CX) can help you with that. But, it’s not just about that. Here’s how CX can ease your burden and help you succeed in many ways!
Conversion rate is one of the key performance indicators for a startup as it calculates the rate at which potential customers become purchasing customers. Many startups focus on the marketing mix that includes product, price, place, and to gain higher conversion rates. But, what if we say, there’s a better and more effective strategy?
If startups focus on improving how customers interact with their brand right from the start and not just at the point where they show an interest in the product/service, there’s a big potential for conversion rates to skyrocket!
You create an experience that matches with customers’ desires whether it’s in the form of marketing content, product suggestions, or communication methods, and appeal to their perception positively.
2. Higher Retention
Leading brands like Starbucks don’t just focus on customers who buy. Instead, they focus on customers who stay. They convince customers to stick with them by creating a sense of community and belonging. It’s a lesson for all startups aiming for higher ranks.
Customer retention is important for startups to ensure they have a solid customer base for consistent operation. Retention rate can only be strengthened if you provide an experience that surpasses your rivals and create a strong emotional appeal. For this, you don’t have to lower your prices drastically and go into a loss-making situation.
You have to understand your customers and their journey with your brand. Learning more about your customers to fulfill their expectations is the key to retain customers. Through CX, you begin to understand what large rivals are unable to provide and fill the market gap.
3. Higher Revenue
As per McKinsey Insights, focusing on CX can increase your revenue by 10-15% and lower costs of operation by 15-25%.
If you want to provide a fabulous customer experience, you have to focus on providing personalized services, simplifying the purchasing process, improving employee engagement, and improving interactions that take place across different platforms such as social media. All these upgrades eventually benefit customers and enhance their convenience. When customers realize how easy it is to do business with you, they are not only inclined to purchase but also to advocate on behalf of your business. This will eventually strengthen your revenue stream further.
One of the key advantages of taking a holistic approach in delighting customers is that you tap into the unrealized potential of your business. You don’t only focus on tactful marketing or sales strategies to perform better. You also acknowledge the importance of taking feedback seriously and being responsive to queries which are also fundamental for revenue generation.
4. Higher Recognition
CX can also help your brand to shine in the market right from the startup phase. Clients are always on the hunt for brands that understand what they are looking for beyond a great product or service. So, building a customer-centric organization can enhance your startup’s visibility.
That’s not it. Creating a delightful customer experience can also compel clients to engage in word-of-mouth marketing improving your popularity further. It can lower your acquisition cost significantly while portraying your startup as a business that prioritizes their customers above anything else. So, while the product you sell may not guarantee you a sharp competitive edge, CX definitely will.