It’s a new year so let’s take it back to basics. Our founder, Tanya Dreyer, discusses what CX actually is and why it’s a game changer for SMEs
Customer Experience encompasses every interaction a customer has with a business. It’s not just about the product or service, it’s about the entire journey and the emotions it evokes from the first touchpoint to post-purchase support. CX encapsulates how customers perceive, feel, and engage with a brand which has been shown to impact their loyalty, satisfaction, and advocacy for a brand/product.
Why is CX Crucial for SMEs?
It might seem cliché but happy customers are repeat customers and repeat customers spend on average 67% more money! That’s why building a loyal customer base should be a top priority. SMEs, however, have unique characteristics that enable them to generate repeat business at a fraction of the cost.
Below I’ve listed some of these characteristics and how leveraging CX can enable incredible competitive advantages for SMEs
1. Differentiation and Competitive Edge:
For SMEs competing against larger corporations, offering exceptional CX is a potent way to stand out. By focussing on personalised interactions and attentive service, SMEs can create a competitive advantage against larger corporates that have bigger customer service budgets but lack the human element.
For example, when purchasing a product or service, would you prefer to speak to a call centre agent in a noisy environment or have a face-to-face interaction over a coffee? While the coffee scenario is not viable for corporates servicing a large customer base, it is an easy and affordable way for SMEs to connect with higher value prospects, building trust and loyalty at the same time.
2. Customer Loyalty and Retention:
As already highlighted, building a loyal customer base is essential for any business but especially for SMEs sustained growth. SMEs that focus on continuously improving their business operations to make customer interactions easier and faster will benefit by having access to a customer base that is more likely to make a repeat purchase and therefore provide a steady revenue stream for the business. The business also benefits from the lower cost of acquisition for a repeat customer vs a new customer.
3. Word-of-Mouth and Referrals:
How many times have you asked a friend or done online research before purchasing a product or service? Word-of-Mouth, is an invaluable tool for SMEs and if leveraged well can provide an immense competitive advantage.
Happy customers become brand advocates, spreading positive word-of-mouth. In the age of social media, this organic marketing can be invaluable for SMEs, amplifying their reach and credibility.
However, it’s important to remember that people are more likely to report a negative experience than a positive one so it’s imperative that your team adhere to your company’s values/code of conduct at all times. In this regard SMEs can also win customer loyalty by implementing feedback mechanisms that allow for direct engagement with the CEO/ owner/senior management allowing queries to be resolved quickly and enabling business owners to address issues proactively.
4. Data-Driven Improvements:
While any ‘data-driven’ intervention might seem like a pipedream for SMEs, there are numerous cloud-based solutions at competitive prices that can enable them to do just this. Whether it’s managing a sales funnel, creating a customer survey or measuring the impact of a marketing campaign, there’s a plethora of digital tools with built-in analytics tools available right now.
By identifying and measuring the CX metrics that impact their business, SMEs can gain valuable insight into customer preferences, pain points, and behaviours. This data allows for targeted improvements, helping to refine products, services, and overall business strategies that enable growth.
5. Adaptability and Agility:
SMEs have the advantage of agility. They can swiftly implement changes based on customer feedback, adapt to evolving market trends, and pivot strategies to cater to changing demands, enhancing CX continuously. However, this requires a business that is open to feedback and more importantly, change. This can only occur in a business that values these traits and is therefore directly related to company culture. Therefore a successful customer experience strategy can only be achieved in a business where the culture is aligned to customer centric values.
For SMEs this can be easily achieved by developing an internal attitude of customer service between colleagues and staff members. If staff feel valued and cared for, this will naturally spill over into their customer interactions resulting in more positive customer experiences.
So customer experience isn’t just a buzzword; it’s a strategic imperative for SMEs. It’s about forging lasting connections, fostering loyalty, and consistently delivering value that resonates with customers. By placing CX at the forefront of their operations, SMEs can carve a niche, thrive amidst competition, and build a loyal customer base that propels their growth in today’s dynamic business landscape.