Why Customer Experience (CX) is Must for Startups?

Unlike large corporates, Startups have the power to build customer-centric business from the ground up. They can easily craft their culture; design processes, systems, trainings as well as their organizational structure keeping their target customers' in mind.

With such a fast pace of evolving new startups providing similar product / service, the critical challenge for any startup is how to create unique value proposition or differentiation.

Customer Experience (CX) is your customers' holistic perception of their overall experience with your business. It's the result of every interaction a customer has with your business, right from navigating the website to talking to customer service and receiving the product/service they bought from you.

As today's most powerful and competitive differentiation, a great customer experience strategy empowers Startups to easily disrupt the most crowded industries / sectors. A holistic commitment to customer centricity is essential for Startups to maximize its success and build sustainable long-term growth.

Let's look at certain key statistics, on Why CX is Critical for Startups:

• 85% of customers leave due to poor 'customer service'.

• A customer is 4 times more likely to defect (or churn), if the issue is service related.

• In fact, price isn't the main reason for customer churn (as perceived by many), it's actually poor quality of customer service.

• A dis-satisfied customer will surely share his/her bad experience with 20 others. In social media, this number can expand up to 3000.

• At least 70% of buying still depends on 'word of mouth' publicity from your existing customers.

• 66% of customers would in fact pay extra for better customer service, and would purchase more from a business, which offers them excellent customer service.

• “89% of companies will compete mainly on customer experience." - Gartner Research.

• “Customer Experience will overtake price and product as the key brand differentiator by 2020." - Walker Research

According to Genesys, the reason why startups should invest in CX are because of positive impacts it brings in terms of its bottom line through improved customer retention (by 42%), improved customer satisfaction (by 33%) and increased cross-selling and up-selling opportunities (by 32%).

Customer Experience Strategy helps the startups not just enhance their customer acquisition rates but also serves as an mechanisms of retaining their existing customer base as well as create an sustainable growth path.

Through an consistent and seamless experience to its customers at every touch point (marketing, sales, service), startups can immediately draw away customers from the established brands. Of course, they mandatorily must have a great, innovate product to gain traction with it's market.

Finally, this chart proves how even a minor improvement in CX can result in anywhere from between $5 million - $873 million in revenue for some of the largest companies in certain industries.

Case study on adopting a Customer Service Excellence Framework.

Case study of an Customer Experience Strategy implemented for a listed real estate firm.

Contact for a free consultation on how to create an customized customer experience strategy for your business!