The Customer Experience as a powerful Profit Leverage
The first step in developing the customer experience is to understand the customer journey. Where does the customer come in touch with the brand? Which channel influences the purchase decision? The increasing number of communication and sales channels for products makes the analysis of the customer journey more complex. Today, it is essential to know all the phases of the buying process and the interactions with the brand that lead to the completion of the purchase.
In fact, the implementation of an effective acquisition strategy is based on the complete control of these parameters: what kind of message to send, what measures to take and when to take them.
The lack of awareness of the customer journey can cause decision makers to make the wrong decisions.
For example, the analysis of communication channels in general shows that the Internet channel is cited by consumers as the source that has enabled them to know what the company offers. Without first contact, there is no purchase: this hypothesis makes it very tempting to increase the advertising budget devoted to this channel, to the disadvantage of traditional tools (displays, leaflets, etc.).
Another example would be that Facebook Ads for many brands record the last click before the purchase is completed. Ads that generate these clicks often return 20 times the investment spent on the ad back as revenue. Based on the hypothesis that such ads are more profitable than others, there is a strong temptation to over-budget these retargeting ads, which have no incremental impact. In many cases, it is only the time of purchase that is influenced, but not the completion of the purchase. These are two completely different aspects.
What leads to the understanding of the Customer Journey, which is the foundation for the creation of an optimal customer experience?
All customer experiences made during the interaction they had with the company shape their perception of the company. Encounters no longer take place only in stores, but also on marketing platforms such as Google, YouTube, Facebook or Instagram. The content of the advertisements is a trigger, not only to make one’s own brand known, but also to trigger purchase actions. It is about taking the prospective customer by its hand and gradually converting him into a customer.
For companies, this means tracking the customer journey independently of marketing platforms such as Google or Facebook. Advertising platforms are not tracking providers. The exact tracking of buying behavior is possible through external tracking partners, which bring a company closer to the actual points of contact with the brand. For high advertising budgets above 100’000 € per month it is essential to implement such external tracking. Only in this way can the customer’s path to purchase be understood and only in this way can a company focus on it, which will lead to an automatic improvement of the customer experience.
An optimized customer experience must be proactive, in the sense that the customer-centric strategy you implement enables you to anticipate your customers’ needs and expectations.
This in-depth understanding of the customer always leads to an increase in the effectiveness of the customer experience and, consequently, profits.