In the context of developing trends and the need to enhance quality of life, customers today have higher expectations when using and experiencing the products and services offered. Not only do they seek product usage, but they also aim to experience the convenience and support services provided, expecting professionalism, openness from support staff, and quick resolution of unexpected issues. As a result, optimizing customer experience has become a top priority and is increasingly seen as a competitive trend in the modern era. According to the 2018 Digital Trends report by Econsultancy, 22% of businesses identified Customer Experience as the leading factor for business opportunities.

 

With the development of technology and social media, interacting with customers has become easier than ever. This also means that there are almost limitless opportunities to either satisfy or disappoint customers. Therefore, the first step for CX managers is to identify the target customers’ needs for a positive customer experience, and then develop policies and implement changes to optimize that experience.

2. Classification of Common Types of Customer Experience

Customer experiences can be classified into five types: Sense, Feel, Think, Act, and Relate, as follows:

• Sense Experience: These are experiences derived from the five senses, created through visual, olfactory, tactile, gustatory, and auditory stimuli.
• Feel Experience: This refers to the emotional experience of the customer. Positive emotions connect the customer with a brand, fostered by strong feelings of joy and pride in using that brand.
• Think Experience: These are experiences that create value for customers through creative thinking.
• Act Experience: These are experiences gained through behavior and lifestyle, with the value created for the customer being a shift in lifestyle and business style.
• Relate Experience: These are socially driven experiences that create value for the customer by providing a sense of social identity and connection.

3. The Importance of Optimizing Customer Experience for Businesses

• Increase Brand Value

In today’s fierce competition, good customer experience is a key factor that helps businesses stand out and build greater trust in the brand. When choosing a product, customers not only compare quality and price but also care about the overall experience (customer service, delivery service, employee attitude, convenience on online platforms, etc.). If these activities are well-executed, you will leave a positive impression on customers, boosting brand recognition to the highest level (Top of Mind). Therefore, focusing on researching and applying ways to elevate customer experience is a key focus for many businesses.

• Increase Conversion Rates for Businesses

A customer’s emotions greatly influence their purchasing decisions. Especially when they are satisfied and well-served, they feel happy and content. This positive emotion makes customers more willing to spend money on a product, compared to experiencing negative emotions (poor employee attitude, poor service, no after-sales care, etc.).

Thus, enhancing customer experiences at every stage, at all times, and creating a positive view of the business will increase the chances of making a sale and improve conversion rates from potential to actual customers.

• Increase Customer Satisfaction, Loyalty, and Advocacy

The importance of improving customer experience also manifests in customer satisfaction. Positive experiences act as a major boost, helping businesses shorten the path to success. Retaining customers long-term is no easy task. Good customer experience is one of the main reasons businesses are able to maintain loyal, long-term customers. This is something most businesses strive for because retaining a loyal customer is far more cost-effective than acquiring new ones.

When customers find a good product and feel valued by the business, they have no reason to leave. This is when brand trust is solidified, and you can introduce them to additional products, helping to increase sales of other items.

• Creating New Customers

The importance of customer experience is also reflected in generating new customers. Nowadays, businesses use social media channels like Facebook, Google, Zalo, Instagram, etc., to promote their brands. However, one of the most effective yet “basic” methods of marketing is word-of-mouth.

When customers are satisfied with the services they receive, they are likely to share their positive experiences with others, recommending the business to their friends and family. This kind of promotion helps rapidly increase the number of new customers, and they often become loyal customers. Therefore, the role of word-of-mouth marketing cannot be overlooked in any company.

• Creating a Competitive Advantage for the Business

The role of customer experience is also reflected in creating a competitive advantage. A business cannot survive without customers. Customers are, in fact, the strongest weapon in business competition.

Thus, customers who have had a positive experience with a business are more likely to continue using the products, which not only increases revenue but also creates a competitive advantage for the company. This highlights the importance of optimizing customer experience.

A business with many customers who have positive experiences is bound to outperform its competitors. Maintaining a high competitive advantage also motivates the business to continue its operations.

• Increasing Profitability for the Business

The role of customer experience in increasing profitability may initially seem counterintuitive. However, let’s take a closer look at the reality of this concept. Specifically, businesses that create positive experiences will have a larger customer base that remains loyal. Even customers who visit only once can still contribute to increased profits.

The customer experience journey includes everything a business offers: from advertising, product design, packaging, to the quality of products and customer service. Customers’ reactions to a business are diverse, whether directly or indirectly engaged.

• Direct interaction typically occurs when customers begin to purchase or use the product.
• Indirect interaction involves elements like advertising, news reports, spontaneous meetings with salespeople, or word-of-mouth recommendations.

What customers experience is personal and may involve sensory, emotional, intellectual, and physical aspects to create a memorable experience. Particularly in retail, both the company and the customers play a significant role in creating a memorable customer experience.

Criteria	Customer Experience (CX)	Customer Service (CS)
Purpose	To create a seamless experience for customers at every stage of their journey	To address customer issues and provide immediate solutions
Role in Customer Journey	Occurs throughout the entire customer journey	Maintains relationships with customers after they use the product or service
Focuses on	Customer emotions	Customer issues
Responsible Department	All departments	Customer service department
Scope of Improvement	Brand value in customers’ minds	Customer retention
Key Performance Metrics	CES, NPS, CSAT, TTR	CSAT

     In the customer journey, a good customer experience is an extremely effective competitive factor for businesses, especially in highly competitive and high-churn industries, where customer demands are increasingly high.

(Continued)

Additionally, you can refer to the following articles:

• Effective Customer Experience Management
• Measuring Customer Experience (Part 1)
• Measuring Customer Experience (Part 2)

HRDC compiled and shared.

Source: http://amis.misa.vn/techinsight.com.vn/smartconvert.co