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Glossario Apparound

This section contains a collection of terms related to the digitization of sales processes, the latest innovations in technology and marketing, each accompanied by an explanation of the meaning or other observations.

Customer Experience: what is it and why is it important?

Customer Experience – often abbreviated as CX – is a central topic in the realm of marketing and business management today. It encompasses the totality of experiences, emotions, and sensations that a customer undergoes during interactions with a company and its products or services. 

Understanding how a customer feels and perceives when engaging with a business, store, or e-commerce entity is of utmost importance for enhancing sales performance. Let's delve into the specifics and delve deeper into what this term means and the benefits of delivering a positive customer experience. 

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Defining and understanding customer experience

The term Customer Experience encompasses all interactions a customer has with a company, ranging from the product and service search phase to post-sale interactions. These interactions encompass every touchpoint between the customer and the company, such as the website, social media, customer service, in-store or online experiences, and more. 

Knowing and analyzing this aspect is pivotal for building a trust relationship between the business and the consumer, thereby creating a positive company image that triggers not only repeat purchases but also a "chain effect." If a user has a positive experience with a company, they will share this with others, potentially leading to new interested customers. 

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Creating a strong CX and its advantages

A strong CX doesn't come overnight. It is built, as previously mentioned, through careful planning and management of all customer-company interactions, providing personalized, high-quality experiences. This includes designing user-friendly websites and applications, managing social media interactions, offering responsive and efficient customer service, and creating engaging and tailored in-store or online experiences.

The benefits are numerous and significantly impact the company's image and success. Some of these benefits include: 

  1. Customer Loyalty: Delivering an optimal purchasing experience is a key factor in retaining customers and promoting loyalty.
  2. Acquiring New Customers: A good CX can attract new customers through positive word-of-mouth and social media sharing.
  3. Increased Sales: Ensuring positive interactions throughout the sales process between the company and the customer can boost revenue, as satisfied customers tend to buy more products or services.
  4. Enhanced Company Reputation: Prioritizing CX can improve the company's image and reputation, fostering a community of loyal and satisfied advocates.
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Influence on sales

The premise is rather evident: a good CX can drive sales growth, while a poor one can lead to customer loss and decreased sales. 

The reason why Customer Experience affects sales is straightforward. By "spoiling" the customer in their experience, new customers can be attracted. Positive experiences with a company lead users and customers to share their positive feedback with friends and family, increasing the company's visibility and attracting new potential leads. Additionally, satisfied customers tend to make more frequent and larger purchases, thus boosting overall sales. 

This is further solidified by customer retention. When customers are content with their experiences with a company, they tend to return and make repeat purchases over time. 

However, this can be reversed. A negative purchase experience can lead to reduced visibility and sales for the company. 

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The 4 Es for achieving outstanding customer experience

Understanding the importance and related benefits of this specific activity, if your company hasn't yet allocated the right focus to Customer Experience, it's time to learn how to build or improve it. Many businesses use the 4 E model, which comprises the following stages: 

  • Entice: Attracting customer attention through advertising, marketing, and promotional activities. 
  • Enter: Creating an easily accessible and navigable experience on websites, apps, and physical stores to facilitate access to information and products. 
  • Engage: Crafting engaging and personalized experiences to increase customer interest and overall satisfaction. 
  • Exit: Establishing a positive post-sale experience to foster customer loyalty and long-lasting relationships. 

 Note: Before embarking on any CX initiatives, understanding your customers' expectations is crucial to tailor the experience according to their needs.

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Measuring CX effectiveness 

Once your strategy has been implemented or improved, it's essential to analyze its results, starting with the strategic approach and customer experience management. This involves collecting, analyzing, and interpreting customer data to drive continuous improvement. 

Measuring the Return on Investment (ROI) and Key Performance Indicators (KPIs) 

Measuring the ROI of Customer Experience can be somewhat complex. While measuring the cost of investment is straightforward, evaluating the benefits can be more challenging. However, according to KPMG, failing to meet customer expectations has twice the impact compared to providing an excellent experience at each interaction point. This implies that offering exceptional customer experiences can boost market share, revenue, and customer loyalty. 

To measure the ROI of CX, correlating user purchase experiences with economic improvements is necessary. This can be done by measuring key performance indicators (KPIs) related to customer satisfaction. These KPIs vary based on the nature of the business, the customers, and the industry. 

However, some KPIs that can be monitored include: 

  • Revenue Growth: Measures the increase in your business's revenue after implementing a CX-oriented mindset. 
  • Customer Retention/Churn: Measures the percentage of customers returning to your business compared to those who abandon it. 
  • Cross-selling and Up-selling Amounts: Measures the percentage of customers purchasing additional products or services compared to those buying only the original product or service. 
  • Customer Service Costs: Measures the reduction in customer service costs after implementing a CX-oriented mindset. 
  • Net Promoter Score (NPS) Variation: Measures customer satisfaction levels. 
  • Digital Metrics: Such as pages visited, time spent on the site, and conversion rate, help gauge satisfaction among those who visited your online properties. 
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Conclusions  

Delivering an exceptional Customer Experience can significantly impact your business's success. After implementation or improvement, measuring the ROI of CX through the right KPIs enables you to assess the effectiveness of the applied strategy and make necessary adjustments to further enhance your customers' experience. 

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Effective Cross-Selling techniques

After identifying target customers and products for cross-selling, understanding effective techniques and tips is crucial for optimizing your efforts. Here's how to do it. 

  1. Provide Added Value to Customers with Complementary Products and Services

Consider cross-selling from the customer's perspective, not solely in terms of potential revenue increase. Using a CRM, it's preferable to offer a focused selection of relevant offers rather than a wide range that doesn't enhance the customer relationship. 

  1. Interact with Customers through Appropriate Touchpoints Aligned with Their Profile

For customers who prefer online purchases, targeted emails or ads might be the most effective cross-selling method. Conversely, if they visit physical stores, sales representatives might have greater success suggesting complementary products and services in person or over the phone. 

  1. Leverage Inbound Marketing Campaigns to Promote Additional Products and Services

If you have content tailored to an audience interested in purchasing sales process digitization software, for instance, you can include ads about additional features in blog posts and product descriptions, thus encouraging related cross-selling. 

  1. Use Customer Data Effectively

Consumers expect personalized service based on marketing concepts like upselling and cross-selling. Hence, utilizing available tools and resources to analyze customer data and offer relevant and targeted proposals is fundamental. 

  1. Create Customer Interaction Spaces to Foster Cross-Selling

Creating designated customer interaction spaces can positively stimulate cross-selling. For instance, an online community for software experts could incentivize the sale of additional features within direct marketing activities. 

  1. Employ Social Selling Techniques

Social media influencers are valuable tools for reaching a broad digital audience. Offering incentives to influencers who already promote your products to mention complementary items on their social channels can boost sales. 

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Integrating CRM and CPQ: benefits for businesses

Businesses undergoing digital transformation focused on innovation need to adopt new processes and workflows. In this context, choosing a CRM to track the customer journey and gain an overview of customer interactions with the company is essential.  

Integrating CRM with a Configure, Price & Quote (CPQ) commercial configurator enables greater process efficiency by creating an end-to-end flow that starts with lead generation and ends with contract formalization 

The connection between these tools is straightforward and allows, from creating a quote using a CPQ tool like Apparound, all data to be synchronized within the CRM. This bidirectional flow provides users with a significant competitive advantage and improved freedom of action. 

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