Current recent research suggests that there are three primary customer experience powers under our control that we must focus on, which have the most direct impact on customer behavior and ultimately, profitability. They are: Brand Projection, Service Interaction and Post-Transaction/Use (Klaus 2015). The simplest way to understand them and their impact is to look at your entire customer voyage, breaking the buying process into four basic phases:
Attraction – Transaction – Utilization – Retention
Brand Communication, Service Interaction, Post-Transaction Support/Use
So how can these super powers not only impact profits, but also help defeat our arch rivals? Studies show that that each of them packs a major punch in directly affecting the buying actions of customers/clients. Specifically, quantitative and qualitative research by Klaus (2015) concluded that the following profit-driven behaviors will increase or decrease based on how effective businesses are at meeting expectations and harnessing their CX powers:
2. Word of Moutth
4. Purchase Loyalty (Market share) measured by customer purchases of a product.
While all three Super Powers significantly impact all of these behaviors, some were more influential than others. For example, experiences AFTER customer transactions are complete, rather than during the actual purchase have the MOST impact on repurchases and word of mouth behavior and a substantial, though lesser impact on customer satisfaction. The same is true once customers actually utilize/receive the products and services that were delivered. As a small businesses, pinpointing and mapping out the multiple touchpoints that exist throughout your customer voyage is one of the most critical pieces of molding the ultimate customer experience. Armed with this knowledge, you can easily identify what and where specific interactions within your business can have the greatest influence on these profit-influencing behaviors which contribute to or steal from your bottom line. Gartner research shows that companies focusing on maximizing their customer experience generate profits that are 60% higher than those of their competitors. Most small businesses are just getting their feet wet when it comes to CX, meaning tremendous opportunities exist for those thinking about creating their own unique customer experience that compounds sales and conquers the competition.