Editorial
The Gist
- CX and EX synergy. Improving employee experience enhances customer service, creating a positive cycle that drives business growth.
- Personalization benefits. Personalized customer experiences boost loyalty and sales.
- Empowered employees. Engaged employees who feel valued improve customer interactions and overall store performance, leading to better outcomes.
It’s no surprise that customer experience (CX) is a top priority for retail businesses. Up to 86% of consumers are willing to pay more for better CX, according to Forbes. And 74% of shoppers will abandon a brand after three or fewer bad experiences, according to Salesforce.
A positive CX can also lead to word-of-mouth referrals from satisfied customers, improved operational efficiency and opportunities for innovation. All this will help retailers thrive in a competitive market.
But how do you deliver CX that will win over customers and elevate your business?
Start by winning over your employees.
Understanding the Connection Between CX and EX
CX is no longer limited to a transactional sale online or at a brick-and-mortar store. It encompasses all contact with the customer, including emails, text messages, customer service, online communities and more. All these interactions affect how customers view a brand and their perception of how the brand views them. Since your employees are the people directly interacting with customers, they have the potential to move your business to the next level.
How exactly do CX and EX connect? Think of it as a continuous cycle. Improving EX creates happy, engaged employees who provide better service, leading to happier customers, which can further motivate employees. This interconnected relationship is crucial for the overall success and sustainability of an organization.
Companies that prioritize EX to deliver premium CX achieved 1.8 times faster revenue growth, according to Forbes.
Related Article: Is It Time to Make CX and EX 'One Experience'?
The Importance of a Customer-Centric Culture
Stores must go beyond offering quality products and services and strive to create exceptional shopping experiences. According to Salesforce, 88% of customers say the experience a company provides is as important as its products and services.
This is where a customer-centric culture comes in. This organizational mindset prioritizes customers' needs, preferences and experiences in every aspect of the business to drive business decisions and strategies. It often means simplifying and personalizing CX.
What are the benefits of putting the customer first?
- Customer loyalty: Personalized CX makes customers more loyal to the brand.
- Reduced costs: Customer retention cuts the costs of acquiring new customers.
- Higher sales: Loyal customers tend to make repeat purchases and are less price-sensitive. Guided experiences enable more sales, including upselling and cross-selling.
- Enhance brand reputation: Customers are more likely to recommend the brand to others, boosting organic growth.
- Innovation: Listening to customer feedback enables continuous improvement, ensuring the business remains relevant.
Up to 25% of revenue can come from personalization tactics, according to McKinsey & Company. Providing guided experiences to introduce new products or help customers select the best item will help lift sales.
Let’s look at Sephora. The site offers self-guided, free digital consultations with suggestions on what to buy. Upon entering a store, customers are greeted by beauty advisors ready to give advice and make recommendations.
In addition to listening to customers and deciding how to respond to them, businesses should also evaluate how their systems operate and how they can innovate and evolve to remain competitive.
Such is the case with Burton Snowboards, which manufactures and sells snowboarding gear, apparel and related products. The company created an online knowledge hub called Discover for customers to find answers on orders and get help selecting products. They also can find advice and information on snowboarding. As a result, Burton now delivers a more sophisticated CX while increasing the service team’s productivity.
Empowering Employees to Drive Better CX
Employees have become keener on what they can contribute to an organization. They want opportunities to grow, and they want to feel valued and make a difference. The Pew Research Center found that 66% of employees who left their jobs in 2021 said there were no opportunities for advancement, and 57% said they felt disrespected at work.
When employees see the connection between their work and business outcomes, they will likely feel a sense of accomplishment. They feel empowered as store representatives rather than clerks, guiding customers while upselling or cross-selling items. Providing employees with decision-making power in customer interactions also cultivates ownership and responsibility.
All this is cyclical: Employees who interact with satisfied customers for at least five minutes are reminded of their purpose at work, and their overall job performance improves, according to research from Wharton.
Removing repetitive duties allows employees to interact more with customers. Technology can alleviate repetitive tasks such as updating inventory levels, leaving employees time for more engaging roles.
Training also gives employees the expertise to act as brand and product experts, fostering competence and confidence. This will further boost their engagement and job satisfaction as well as drive productivity and overall store performance.
Related Article: CX and EX: How Engaged Employees Enhance Customer Experience
What’s Next in the CX and EX Revolution?
The future trends of CX and EX point toward hyper-personalization, AI-driven customer data and seamless omnichannel interactions. Businesses are leveraging data analytics and AI to more precisely anticipate customer needs and tailor experiences. At the same time, enhancing EX through more empowering roles, continuous learning opportunities and robust support systems is becoming crucial.
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Where are you with your CX and EX? Can you engage and empower employees more? Are there ways to personalize your CX? Do you put customers at the heart of your strategy?
Companies that recognize and nurture the interconnection between CX and EX often see happy customers, happy employees and an improved bottom line. Engaging both customers and employees will create a synergy that cultivates long-lasting relationships and innovative business practices. A customer-centric culture not only strengthens customer relationships but also creates a sustainable foundation for long-term success.
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