Does CX Matter?

Think you’re in a business that doesn’t need to worry about CX? Think again.

Typically when we think about Customer Experience or CX, the businesses that come to mind are, not only direct to consumer, but also ones that function by having a face-to-face interaction with their customers such as restaurants, stores, hotels and gyms.  However, these aren’t the only industries that need to worry about the experience the customer is having.  In fact, all organizations need to be aware of the experience their customers are having.  

For example, many online businesses often forget that there is a human on the other side of the screen. Just because you can’t see your customer, does not mean that they aren’t having a reaction or opinion.  In fact, it’s more important to consider CX when you can’t judge your customer’s facial reactions and comments in real time. Clicks on a website do not necessarily mean “engagement” and do not mean that your customers are satisfied.

Customer Experience usually falls under the Marketing department organizationally, but CX isn’t just marketing.  It’s the entire customer journey, the bulk of which happens during the “Operations” phase of a customer journey.  It’s the use of the product, how you respond to problems, how you solve those problems, the overall experience of being your customer, how well the product serves their needs, how well you communicate with them, and so on.  Marketing is getting customers in the door; Operations/Product Development and Customer Experience are what keep them from walking out.  Every organization needs employees who know how to listen to and really hear what your customers are saying – people who understand how to work withcustomers, not just manipulate them to buy. Investing in your organization’s CX will make a huge difference in organizational flow and efficiency, and also interestingly enough, your bottom line.  

CX Beyond Traditional Thinking 

Industries such as healthcare, education and government services also need to be aware of the experience their customers are having.  Doctors may feel that a patient can “take it or leave it” if they require their services, but the truth is a patient can indeed take their business elsewhere.  If enough patients opt out of the healthcare system, it will cease to exist.  The DMV might feel that it doesn’t matter if customers are waiting all day to renew a license, but those same customers are taxpayers and voters.  While they can’t necessarily change the wait time at the local DMV, their displeasure at the entire organization will manifest in other ways.  

In the medical device, biotech, medtech and other manufacturing industries where the business model is B2B rather than direct to consumer, CX is frequently overlooked, but it shouldn’t be.  CX also involves developing and nurturing relationships.  Success in each of these industries is dependent upon suppliers, distributors and other organizations.  While they may not be “customers” in the traditional sense, these are indispensable relationships that must be maintained.  How you approach each relationship can determine the longevity and success of it.  Long lasting B2B connections are not only based on the amount of money spent or the volume of products.  If your competitor is easier to work with, guess which organization your supplier is going to “go above and beyond for?”  It probably won’t be you.  

Your Competition Knows the Importance of CX – Do you?

If you have competition, you need strong, well-executed CX.  And even if you don’t currently have competition for customers, you still have business relationships, some of which are crucial to your operations.  For B2B industries, usually there are not unlimited possibilities for those relationships.  The cost of doing business with an organization is not just financial, it also involves time, effort, and reputation.  There may be only 5 suppliers in the world of an item that you need, however if not one of them want to work with you, you’re out of luck. 

CX means that your focus is on your customers, patients, business partners or any other label you choose to use.  It means that you value these relationships and work to develop and solidify them. It’s focusing on what your customers want and need, not what youthink they want or should want.  It’s not wasting time and effort on things they don’t care about.  Too many organizations put effort and man-hours into something their customers don’t see the use for regardless of how “valuable” the company claims it to be. If you don’t focus on and meet your customers’ needs, chances are, someone else will.  Do you know how strong the possibility is for your customers to leave you?  Do you have a metric for that?  The cost incurred by your customers to switch to your competitor might not be as high as you think.  Do you know the reasons why they would leave?  Do you know the reasons why they might stay?

So What?

 Many times organizations mistakenly try to make their customers feel appreciated, but that strategy is misguided.  You can’t make someone else feel anything.  But what you can do is demonstrate to your customers and business partners that you appreciate them and their business.  Show them that you respect them and are happy that they chose to do business with you by your actions and not just your words.

In this age of social media, satisfied customers can produce a viral coefficient when they promote your business to their social and professional networks leading to possibly exponential growth.  But conversely, one bad customer experience can lead to a loss of hundreds or thousands of customers.  Which side of that coin do you want to be on?