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Why Customer Experience Matters and How to Improve It?

Ruthie Carey
Ruthie Carey Content Strategist

Customer experience, or CX, can be defined as the relationship between a business and its customers. In a competitive market, it's essential to ensure that every customer interaction leads to a positive customer experience, putting your business at the forefront. Building excellent CX not only fosters customer loyalty and aids in retention but also transforms customers into enthusiastic advocates for your brand. This is why 88% of companies now prioritize customer experience in their contact centers.

To create a lasting and favorable impression on customers, companies should focus on key strategies. This includes comprehending the customer journey, addressing pain points, nurturing effective communication, employing technology for streamlined processes and feedback, and investing in employee training and empowerment. Let’s learn more about customer experience in this blog.

Why Prioritizing Customer Experience Is Critical?

Customer Experience helps you measure how customers feel about your brand based on all interactions across different customer touchpoints. It is highly advisable to invest in resources for strategies that promote positive interactions. Let's delve into three compelling reasons why a customer experience strategy should be considered your most valuable marketing campaign.

  1. Customer loyalty

Losing a quarter of your customers in a single day due to a single bad experience is a stark reality, with 17% considering leaving after just one negative encounter and 59% after several. This emphasizes the critical role of customer experience in maintaining customer brand loyalty. When customers have positive experiences throughout their journey with a brand, they are more likely to stick around.

  1. Competitive advantage

The customer experience is the distinguishing factor that separates a brand from its competitors. According to Gartner, 89% of businesses primarily compete based on the experiences they provide. So, providing a great experience is not just an advantage, it's the key to standing out.

  1. Increased customer satisfaction

Delighting customers might seem challenging because everyone has unique preferences, but it's a worthwhile investment for your business. Creating positive customer experiences leads to happy customers who are more likely to endorse the brand to others.

  1. Improved brand reputation

When customers talk about their experiences on social media and in online reviews, it has a big impact on a brand's reputation and finances. 93% of customers claim that online reviews affect their buying choices, so positive experiences can improve a brand's reputation, equity, and market share.

The Role of AI in Digital Customer Experience

In the digital age, customer experience has evolved significantly. Artificial Intelligence (AI) has a significant role in this transformation, helping businesses offer more personalized, efficient, and effective customer interactions.

1. AI chatbots for 24/7 assistance

AI chatbots have become a driving force in digital customer experience, especially since the onset of the COVID-19 crisis. They engage with customers in real-time, handling routine inquiries, providing information, and even assisting with basic problem-solving. Chatbots offer instant responses and are available 24/7, significantly improving response times and ensuring consistent support.

2. Virtual assistants for seamless interaction

Customers are increasingly turning to self-service options for swift and hassle-free solutions to their issues. Virtual assistants use practical AI technology to understand customer needs and deliver prompt assistance, eliminating the need for human agents.  They also streamline repetitive tasks, enabling live agents to concentrate on more valuable tasks.

3. Predictive analytics for tailored recommendations

AI-driven predictive analytics analyzes customer data to anticipate their needs and preferences. This allows you to provide customized suggestions and promotions. For example, you can utilize predictive analytics to propose products to customers based on their browsing history and previous purchase behavior, leading to enhanced sales and increased customer contentment.

4. Personalized marketing for higher conversion

Using AI in customer experience management can help you create highly personalized marketing campaigns. Through analyzing customer actions and preferences, AI can deliver targeted content, emails, and advertisements. This ensures that customers receive messages tailored to their interests, leading to increased engagement and conversion rates.

5. Customer sentiment analysis for improved service

AI in customer experience uses sentiment analysis tools to evaluate customer feedback, such as reviews and social media comments, to understand customer emotions and opinions. This helps in pinpointing areas in need of enhancement and promptly addressing concerns, ultimately boosting overall customer satisfaction.

How to Measure Customer Experience?

When implementing solutions to enhance your customer experience (CX), it's also important to periodically measure your CX to gauge the effectiveness of your efforts and ensure ongoing improvement. To measure customer experience, follow these steps:

Step 1: Define Metrics and Objectives

Begin by outlining your business goals and objectives. Determine which metrics are relevant to these objectives. Frequently used metrics comprise the Net Promoter Score (NPS), Customer Satisfaction (CSAT), and Customer Effort Score (CES). Set clear, measurable targets related to these metrics, whether you aim to boost customer loyalty, decrease churn, or enhance the overall experience.

Step 2: Gather Data

Gather data from different sources to learn about the customer experience. This data may come from customer surveys, feedback forms, social media mentions, online reviews, customer support interactions, and website analytics. The goal is to gather both quantitative and qualitative data to see how customers view your brand and their interactions with it.

Step 3: Analyze and Interpret Data

After gathering data, it's crucial to analyze it well. Find patterns, trends, and correlations within the data to spot where the customer experience can get better. Consider segmenting data by customer demographics or purchase history to gain insights into specific customer groups. Use data analysis tools and software to extract valuable insights and understand the nuances of the customer experience.

Step 4: Take Action and Iterate

After analyzing the data, it's crucial to take action based on your findings. Implement changes and improvements that address the pain points and issues identified in the data analysis. Ensure that your actions are in line with your objectives and KPIs. Moreover, remember that measuring customer experience is an ongoing process.

Effective Ways to Improve Customer Experience

Delivering good customer experience is a key priority for businesses seeking success in the current competitive environment. There are several effective strategies to improve customer experience management, including:


Investing in personalization helps improve customer relationships, and good experiences can yield substantial rewards for brands. Harvard Business Review reveals that personalized ads, driven by customer activity, can boost a product's revenue by 38%, underscoring the impact of personalization in your CX efforts. Personalization allows your brand to deliver the right content at the right time and to the right person.

Efficient Customer Support

Good customer service is crucial for a great customer experience and can distinguish you from others in the eyes of your customers. People choose to buy from businesses not only because they like the product but also because they trust they'll receive support when needed. For instance, American Express discovered that customers were willing to pay 17% more to a business that provided excellent customer service.

Omnichannel Engagement

With over 50% of web traffic originating from mobile devices, multi-device digital journeys have become the new standard. The key is to seamlessly connect and unify every step of the journey. Embracing omnichannel strategies is essential in this context, allowing customers to transition between channels effortlessly. Despite the challenge of numerous customer experience platforms, using CX software tools to store and utilize customer data enables businesses to create a coherent, uninterrupted dialogue, even as customers traverse different channels.

Feedback and Continuous Improvement

Listening to customer feedback is essential to improve customer experience. Gathering insights through surveys, reviews, and social media monitoring is vital. Analyzing large volumes of written feedback helps identify patterns and make predictions for future improvements. It's important to show customers you value their input and act on it to enhance your offerings and build trust. An open and transparent feedback loop demonstrates your dedication to providing the best possible experience.

Redefine Customer Support with Five9

Five9 is revolutionizing the way businesses engage with their customers. By meeting customers on their preferred communication channels, streamlining operations, and harnessing the collaborative power of intelligence, AI, automation, and cloud technology, Five9 empowers your business to enhance agility and scalability.

With Five9, you can optimize your workforce, workflows, and infrastructure as your business evolves. As a leading provider of cloud contact center software, Five9 is dedicated to improving your customer experience and delivering tangible business results. At Five9, we aim to transform contact centers into customer engagement centers of excellence.

Ruthie Carey
Ruthie Carey Content Strategist

Call 1-800-553-8159 to learn more about Five9