The quality of customers’ experiences with a company determines whether they choose to be loyal to it or switch to a competitor — Forrester’s data has proven it. So, it’s crucial for companies to better understand how people’s interactions with them shape their perceptions.
Acquiring a new customer costs far more than retaining one. And when your company retains customers (i.e. they buy again and perhaps buy more), they’re also more likely to recommend your company to others, making acquisition less costly. Therefore, basic business sense dictates that if your company’s rate of customer retention is less than 100 percent, it should prioritize investing in improving customer experience (CX) over acquisition tactics like advertising and marketing campaigns.
But improving CX is harder than it appears. Above all, it means that the people inside a company who design experiences for customers – from products and services to documentation, stores, commerce sites, customer support, and more – must be experts at perspective-taking (seeing a situation from another person’s point of view) on behalf of the intended customers.
Effective perspective-taking requires ...
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