In this article, we'll cover:
What Is Customer Experience?
The overall experience that customers have with a company or brand, starting from the initial point of contact, and continuing until post-purchase assistance, is known as customer experience (CX). This experience encompasses all the various touch points through which customers interact with the business, including communicating with a customer service representative, exploring a website, procuring a product or service, and receiving subsequent communication. In essence, CX captures the entirety of the customer’s journey with the business, from start to finish.
With a positive customer experience, a person feels satisfied with a company and this can lead to repeat purchases (87%), positive word-of-mouth referrals (72%), and increased customer loyalty (96%).
A negative customer experience can lead to negative reviews (13%), customer dissatisfaction (77%), and decreased business (67%).
Why Is It Important to Consider Customer Experience Transformation?
Forward-thinking companies focus on improving customer experience, as it is critical to a brand’s immediate and long-term success and gives a lot of advantages.
Retention
Customer retention is a vital aspect for businesses, with 89% of companies acknowledging that exceptional customer service plays a critical role in achieving it. By delivering an exceptional customer experience, companies can attain a retention rate of up to 94%. Retaining existing customers is of utmost importance for businesses, as it can prove to be a more cost-effective approach compared to acquiring new customers.
Loyalty
65% of customers are more likely to become loyal and even brand advocates, promoting a business to others, if they have a positive experience.
Differentiation
With 77% of brands believing CX is a key competitive differentiator, offering a superior customer experience can help differentiate a business from competitors and create a unique selling proposition.
Revenue
83% of companies experience growing revenue, as 61% of customers are happy to pay more for a service or product that meets their expectations.
Efficiency
A focus on customer experience can help streamline processes and improve operational efficiency, reducing costs and increasing profits.
Innovation
The process of transforming customer experience often involves innovation and new ideas, which can improve businesses and keep them ahead of the curve.
What Are the Elements of CX Transformation?
The elements of customer experience (CX) transformation can vary depending on each business, industry, and customer base, but there are some common elements.
Customer Insights
Collecting and analyzing customers’ data to understand their needs, behaviors, and preferences can help improve customer experience. This can include feedback surveys, social media monitoring, and user testing.
Design Thinking
Using a human-centered approach to create products, services, and experiences that meet customers’ needs and desires can help move customer experience to the next level. This involves empathizing with customers, defining challenges, finding solutions, prototyping, and testing.
Digital Transformation
Using technology to enhance customer experience can include digital channels such as mobile apps, chatbots, and social media, as well as an integration of data across systems to provide a seamless experience.
Culture Change
Creating a customer-centric culture that values and prioritizes customer experience is one of the primary steps to customer experience transformation. This involves training team members, setting metrics, and aligning business goals with customer needs.
Process Optimization
60% of users feel frustrated waiting on hold even for a minute, and 50% of customers are demotivated by being on hold for too long. Streamlining processes to remove friction points and improve customer journey can drastically improve customer experience. This can include automation, self-service options, and personalized communication.
Continuous Improvement
The majority of businesses (73%) have shifted their focus to compete primarily based on their customer experience. Regularly measuring and analyzing the effectiveness of CX initiatives, and making adjustments to continually improve customer experience, can help win the hearts of customers.
By focusing on these elements, businesses can transform their customer experience and create a competitive advantage by providing exceptional experiences that meet evolving needs and expectations of their customers.
Steps to Transforming Customer Experience
Collecting Customer Feedback
Companies can increase their revenue by gathering feedback from customers through focus groups, surveys, and other methods to understand their needs and expectations.
Improved CX example. In the early 2000s, Microsoft aimed to become an innovative collaborator. The company started investing more in customer experience. The brand’s Twitter contains multiple accounts that help cover different aspects of the brand and stay in touch with customers.
Using Technology
- Worldwide AI software revenue increased by 21.3% since 2021
- A chatbot is the preferred option for resolving customer support issues for 20% of users
- In the US, 80% of customers opt for self-service automation as their preferred method
Leveraging technology to enhance customer experience plays a prominent role in success of any business. It can be done via digital channels like social media, mobile apps, or chatbots, or through automation and data analysis to streamline processes and personalize communication.
Improved CX example. Urban Outfitters invested a lot in digital customer experience and developed a successful omnichannel strategy. Today, they are characterized by rich and easily navigable websites, which makes customers feel welcome. The brand uses a mix of media including slideshows, videos and drop-down boxes. Their website is straightforward and intuitive. By utilizing intelligent categories, shoppers can effortlessly browse and discover desired items. Moreover, the brand provides an array of exclusive releases and giveaways through its video streaming channel, music series, and music-focused Instagram channel. To create a comprehensive omnichannel experience for their festival-going audience, the company has expanded its presence within the category.
Empowering Employees
For customers, it is crucial that agents possess adequate knowledge:
- 46% of customers will switch to a different brand if they feel that employees lack knowledge
- 95% of leading organizations consider CX job roles to be crucial in achieving business growth
Providing a team with all necessary tools, training, and autonomy can help deliver exceptional customer experiences.
Improved CX example. Delta Air Lines provides a personal touch with the “Care Enough” program. The brand encourages employees to be proactive and engage with customers to provide exceptional experiences. The company has become famous for its prominent customer experience and had an increase in sales and customer loyalty.
Providing Personalization
Personalized purchasing experiences can bring back 60% of consumers to a brand, according to recent research. Furthermore, 59% of online customers find personalized online retail stores to be a more convenient way of discovering more interesting products.
Brands that prioritize delivering a positive customer experience can anticipate a boost in revenue. To effectively provide the CX that customers crave, it’s critical to comprehend their evolving needs, expectations, and perceptions, and determine the best approach for meeting them.
Improved CX example. By distinguishing between the two audiences, the company has streamlined the search experience on a unified platform. Airbnb has also ensured a smooth UX and customer experience by implementing a consistent branding and intelligent design across their mobile application and web browser.
Allowing Self-Service Where Possible
Customers are ready to help themselves where possible. Recent research indicates that 75% of customers anticipate having access to a self-service customer care option for addressing their inquiries. Customer service leaders believe that self-service tools can handle 20-40% of the tasks that live agents perform.
Going Omnichannel
71% of customers confirm they want a consistent experience across channels, but only 29% say they get it. The seamless integration of all communication channels through omnichannel support provides a distinct advantage for enhancing the customer experience. Effortless channel-switching by customers boosts efficiency, and companies that have adopted omnichannel support have seen a considerable increase in sales, ranging from 20% to 80%.
Improved CX example. Amazon developed an omnichannel strategy that is all about customers. Their agile approach to self-service turns everything into advantage and helps improve customer experience. Online and physical stores are designed around customers’ likes and preferences.
Amazon Go stores focus on convenience. There are neither checkout nor checkout lines. By using the Amazon Go app, customers can enter the store, login, select needed items, and walk out.
Measuring and Optimizing
Continually measuring the effectiveness of CX initiatives and making adjustments, based on feedback and data, involves setting metrics, analyzing customer data, and regularly revisiting customer journey to identify new opportunities for improvement.
Conclusion
Forward-thinking companies work harder and go farther to create top-notch customer experiences. By making the right steps, keeping a customer in the center of omnichannel support strategy, empowering customer support agents with the right tools and training to provide a personal touch and personalization, can help businesses transform their customer experience and create long-term competitive advantage.
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Svitlana had a passion for deep and extensive research, which helped her gain valuable expertise in customer support trends. Thanks to her ability to analyze and understand the evolving landscape of customer support, she created insightful research materials in a simple and clear language.
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