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How to Build a Great Customer Experience Strategy in 2023

Updated: Apr 25, 2023

What is Customer Experience Strategy?

From new hires to pricing changes and solving product bugs, almost every action your company takes has a direct influence on the way customers perceive you. This makes it important to develop and manage a customer experience strategy.

What is customer experience strategy, exactly? In short, it refers to what customers feel and think about your business across every interaction they have with it.

When executed well, this strategy helps to ensure your customers have a positive experience across their entire journey with your business—from evaluating your offerings to making a purchase. In the end, customer experience can determine whether or not your customers choose to remain loyal to your business.

Why is Customer Experience Strategy Important?

A well-designed customer experience strategy can have a significant impact on any business, small or large.

How? Satisfied customers spend larger amounts and buy more often than unhappy ones. And as customers become more loyal, they are more likely to refer others to your business, namely through word of mouth.

Bain & Company research found that the average apparel buyer will refer three people after their first purchase with an online store. After ten purchases, they will have referred seven people.

With better customer experience, you can then:

  • Reduce customer churn: Businesses that focus on solving customer problems proactively can reduce churn and increase retention. And even a 5% increase in customer retention can increase profits by 25% to 95%.

  • Increase customer lifetime value (CLTV): Businesses that focus on reducing churn and delighting existing customers increase the lifetime value of customers. The longer you can keep customers, the more value they get during their relationship with your business.

  • Boost client satisfaction rate: When customers have a positive experience with your brand, their satisfaction level increases. They become advocates for your brand and can help to attract new business.

What Makes a Great Customer Experience?

A great customer experience can only happen when your organization is aligned around a singular mission to delight customers. That mission needs to be carried out across all channels and touchpoints.

This requires you to train employees so that they know what is expected of them when it comes to customer interactions.

The key elements that contribute to a great customer experience are:

  • A timely response: Getting ahead of and acknowledging concerns with effective solutions has a powerful influence on the quality of customer experience.

  • Effective communication: Open communication helps to build trust with customers and can limit negative experiences and misunderstandings.

  • An omni-channel approach: Businesses must provide easily accessible information via all available channels (i.e. their website, a knowledge base, social media) in order to deliver a proper customer experience.

  • The human touch: Your service agents are critical to your customer’s experience. They represent your company. In order to delight customers, it is imperative to equip your reps with the resources they need to have meaningful engagement.

  • Going above and beyond: Seize opportunities to do more than you have to. This can help to turn even bad customer experiences into positive ones.

How to Build a Solid Customer Experience Strategy: 9 Best Practices

If you want to retain and grow your customer base, keeping them happy should be one of the main goals of your customer experience strategy. According to a 2018 HubSpot survey, 68% of respondents “would pay more if a company has great service.”

So how do you go about creating a great customer experience strategy? Here are some best practices.

1. Understand Your Audience and Create Buyer Personas

To create a company that lasts, you need to understand your customers. With a deep understanding of customer wants, needs, and values, you are in a better position to improve business performance. In fact, companies who consistently maintain their buyer personas are more likely (7.4x) to exceed their lead and revenue targets.

To build your buyer personas, ask yourself (and customers!) what motivates them, what they want to achieve, and what they value in a customer experience. This effort can help businesses design and implement a successful customer experience strategy.

2. Define a Clear Customer Experience Vision

A customer experience vision outlines your business goals and values, and demonstrates how you plan to handle key components of customer experience, like handling support tickets, onboardings, and sales calls. A clear vision helps guide and inform the experience you deliver.

3. Build a Strong Customer-Facing Team

To delight customers, you need the right teams in sales, customer success, and support. Part of this comes down to hiring individuals with the necessary skills. But it is equally important to provide ongoing knowledge training, encourage effective communication, and reiterate your customer vision. This way, your teams can better understand how their daily, weekly, and monthly work contributes to the larger picture.

4. Invest in the Right Systems and Tools

You may have a great team, but misalignment and frustration will occur without the right tools. Poor tooling can mean long wait times for customers, messy documentation, and bottlenecks to getting work done. Empower your team with tools for live and automated chat, data management, and ticketing to deliver an exceptional customer experience.

5. Use Artificial Intelligence to Improve and Scale Customer Experience

Artificial Intelligence has revolutionized the customer experience landscape. AI chatbots can help businesses reduce customer support costs and respond to inquiries faster. Chatbots can manage simple queries 24/7, while complex queries are redirected to human agents for resolution. AI can also collect basic customer information for analysis and scalability.

6. Measure Customer Experience Metrics

Without a benchmark for success, it's impossible to improve. That’s why measuring customer experience is essential. Some common metrics used to measure customer experience effectiveness and perceptions include:

  • Customer Satisfaction Score (CSAT)

  • Net Promoter Score (NPS)

  • Customer Effort Score (CES)

Companies should track these metrics systematically, comprehensively, and efficiently to continually improve customer experience.

7. Incorporate Customer Feedback

Incorporating customer feedback is essential to improve their experience. By collecting and analyzing feedback, businesses can identify areas for improvement and take the necessary actions to address customer concerns. You don’t have to rely on guesswork or gut calls that can lead to costly and ineffective business decisions.

8. Provide Personalized Service

While demands for personalization are rising, many companies struggle to personalize interactions based on customer behavior. This opens up a great opportunity for customer-facing teams. By tailoring interactions with customers based on their unique needs and preferences, teams are more likely to delight them.

9. Prioritize Responsiveness

According to RingCental, “the average person will spend 43 days of their life on hold.” Long wait times can be frustrating for customers and create a negative perception of your company. To avoid this, you should prioritize quick and efficient communication when responding to customers' inquiries and complaints.

Improve Your Customer Experience Strategy

Want to make your customers happy? Improve your business outcomes? Follow the tips outlined in this article to build your customer experience strategy, keep track of how it performs, and improve it over time.



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