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What is Digital Customer Experience?

8 July 2022

What do we mean by a digital customer experience? And how can we create a great digital customer experience? A superior digital customer experience delights new and existing consumers, discourages them from leaving for a competitor, and improves lifetime value. To achieve this, companies need to take important consumer concerns into consideration: reachability, convenience, personalization, ease of use and consistency.

What is digital customer experience?

Digital customer experience is the quality of every interaction customers have with all of a business’s digital touchpoints: websites, social media, mobile applications, messaging tools, and kiosks at brick-and-mortar locations.

The experience isn’t just about the tech. It’s also how customers feel about your brand following these digital interactions. Are they left with an engaging and efficient personalized experience, or one that’s slow, frustrating, and prone to glitches? The digital customer experience, good or bad, has a direct impact on revenue.

What creates a great digital customer experience?

A superior digital customer experience delights new and existing consumers, discourages them from leaving for a competitor, and improves lifetime value. To achieve this, companies need to take important consumer concerns into consideration:

Reachability

The reachability of the customer experience relates to the reliability and ease of access of digital offerings. The more digital channels the better, since that means there are more ways for customers to interact with a brand. If customers have questions about products and services, they expect the digital experience to provide an answer quickly and intuitively.

Convenience

Customers value convenience, and they’re willing to pay for it. This means providing:

  • Accurate and timely information about product availability, operating hours, and other details about the business
  • Real-time customer support
  • Intelligent chatbots that can resolve problems


Personalization

In exchange for all the personal data consumers are handing over, they expect a personalized experience. That can be as simple as being greeted by name or more complex, such as product recommendations tailored to their preferences.

Ease of use

Consumers don’t like friction in their digital experiences, such as multiple sign-ins across channels or the need to re-enter payment information every time a purchase is made. A close examination of transactions and other parts of the customer experience can identify friction and inefficiency.

Consistency

As consumers move from websites to mobile apps to messaging apps and back, they expect to have the same experience in all places. What’s more, movement across platforms should be as seamless as possible.

Measuring the value of customer digital experience

Increased revenue is certainly a useful way to measure the success of customer experience initiatives. But organizations that want to dig deeper can also consider these other metrics:

  • Retention rate: This shows what share of customers continue to do business with an organization over time. It can also indicate when customers drop away, whether at a certain time or year or a specific point in the transaction.
  • Churn rate: This is the flip side of retention, measuring how many customers leave during a period of time. Satisfactory customer experiences should reduce the churn rate. 
  • Average resolution time: How quickly are customer problems resolved through the digital experience? Are resolution times trending longer or shorter? The answers can help organizations gauge the success of digital customer service initiatives.

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