Businesses that prioritize customer experience (CX) in today’s hyper-competitive market, thrive. Surely price and product matter, but what truly differentiates a brand is how it makes people feel. An exceptional customer experience builds loyalty by word-of-mouth and marketing, ultimately boosting profitability. Over the past years CX has become the heartbeat of any successful business and leaders can leverage it for sustainable growth.
The business impact of exceptional customer experience is tremendous. A positive customer experience has become a business imperative and studies show that companies with superior CX grow revenue 5-8% faster than their competitors (McKinsey & Company, 2023). A PwC, 2018 study shows that 86% of customers are willing to pay more for a better experience and therefore CX influences brand perception, customer retention, and long-term profitability.
For instance, Amazon’s relentless focus on convenience, speed and personalization has made them the global e-commerce leader setting the standard which customers now expect from all businesses. This level of excellence is something we emphasize in the training programs at Global Hospitality & Maritime Leaders, where professionals learn how to cultivate a customer-first mindset and implement best practices that drive loyalty and revenue.
CX is the new marketing strategy and gone are the days when traditional advertising dictated brand success. Today, customer experience is the most powerful marketing tool and a single negative interaction can go viral on social media, while an outstanding experience turns customers into brand ambassadors. For example, Apple sells products while creating an ecosystem where customers feel valued, they designed a seamless integration across devices to exceptional in-store service and their strategy fosters lifelong brand loyalty. This concept is something I explore deeply in my book Dare to C.A.R.E., where I discuss the transformational power of connection, authenticity and re-engineering customer interactions to create meaningful experiences.
Happy employees create happy customers and it is clear that employee experience drives customer experience. Companies who invest in their workforce’s well-being see direct benefits in customer interactions as the engaged employees tend to go the extra mile and provide memorable experiences that keep customers coming back (Harvard Business Review, 2014).
Leaders should focus on creating a strong, people-first culture, empowering employees to provide warm and personalized service. Customers today expect brands to anticipate their needs and offer tailored experiences. Leveraging technology for personalized experiences through AI, data analytics and automation enable businesses to personalize interactions at scale. Many businesses nowadays use advanced algorithms to recommend content based on individual preferences, in addition to chatbots who provide instant assistance to predictive analytics suggesting relevant products, technology enhances CX like never before, keeping users engaged and satisfied.
Ignoring CX comes at a hefty price, research shows that there is a cost of poor customer experience and 1 in 3 customers will leave a brand they love after just one bad experience (PwC, 2018). The cost of acquiring a new customer is five times higher than retaining an existing one, making customer experience an essential investment.
Leadership commitment is crucial for creating a customer-centric culture. Leaders should champion CX excellence and ensure it remains a top priority for the organization. If they lead by example and embrace the feedback loops and regularly gather customer insights and act on them, it will cascade throughout the organization. Investing in employee training equips teams with the skills needed to handle customer interactions with empathy and efficiency. Customers expect consistency whether they engage online, in-store or via customer service and it is important to leverage technology smartly and use digital tools to enhance, not replace, the human touch and create a seamless omnichannel experience.
Customer expectations will continue to evolve, making CX an ongoing priority rather than a one-time initiative. The future of CX is now and those companies who proactively enhance their customer experience will build stronger relationships, drive higher revenues and stand out in a crowded marketplace and the question is not whether businesses can afford to invest in CX, it is whether they can afford not to.
About the author:
Carmen F. Vlasceanu PhD. is a global hospitality executive with over 25 years of experience in the hotel, aviation catering, and cruise industries, as well as being a long time Fellow of the UK Institute of Hospitality. Dr. Vlasceanu is also the founder of nonprofit organisation Angels-Wings.org, which is dedicated to uplifting communities through education and personal development.
In her enlightening new book Dare to C.A.R.E Dr. Vlasceanu provides a much-needed framework for synthesising individual growth with organisational transformation in a way which enables people to thrive both personally and professionally. Ultimately supercharging customer experience.
