Why Is Customer Experience Important to Drive Your Business?

Team Pepper
Posted on 26/04/227 min read
Why Is Customer Experience Important to Drive Your Business?
Why is customer experience important, and how can you create it for your business success. This guide has all your answers.

Experience is everything. A great customer experience is the best source to drive any business to the next level. If you want to increase your business revenue- the surest way is to exceed your customers’ expectations while retaining them as brand loyalists.

Once in our lifetime, we all have had an outstanding and infuriating customer experience; studies have shown that around 50% of customers stop doing business with a company post just one negative experience.

And, that’s the reason you need to ponder over – why is customer experience important? When you value your customers, they often come back for more and promote your business. So, get it right! How you perceive customer experience can have a profound impact on your whole business.


What Is Customer Experience?

Customer experience is all about what impression your business leaves on a customer throughout all the aspects of a buyer’s journey.

It is a way to measure how content your customers are whenever they engage with your product or service, including the initial stage of becoming a customer, the sales process, and the customer service they receive after the final transaction.

The summation of these interactions a customer has with your company decides the longevity of your relationship with them. Their experiences are influenced mainly by the journey you design for them, which eventually impacts your business’s bottom line, i.e., revenue.

If you serve them well, your business may see customer satisfaction and loyalty; and if you get it wrong, do not be surprised to see them go forever.

The two crucial factors that create the customer experience are the product or service and the people with whom a customer is interacting. Are the customers amazed by the performance of your product? Are they happy with the way your customer service resolves their problem? Numerous other factors create a good customer experience.

Why Is Customer Experience Important for a Business?

Thanks to the digital world, now customers have plenty of options to choose from, along with the resources that educate them about the product and help them make the final purchase.

Why is customer experience important? For this very reason. As a customer goes through several stages of the sales funnel, even a single negative experience can derail all your endeavors towards delivering a great customer experience or might create a ripple effect that can influence other customers’ perceptions.   

Here are a few other reasons why providing a good customer experience is important for your business growth:

Increase in revenue

Research has shown that loyal customers keep coming back for more. They contribute to around three times of increment in revenue over three years, while a dissatisfied customer can make your revenues plummet to up to 14% within a short span.

If you are serious about your business, these two numbers can be too compelling for you to ignore. We suggest you take feedback from clients continuously and use them to improve your services.

With exceptional customer experience, your clients are likely to make more purchases. More importantly, a loyal customer promotes your product via word-of-mouth marketing and provides you with a new customer base through referrals.

Customer retention

If you don’t want to see your competitors successfully poach your loyal customers, you need to understand the importance of customer experience.

Because, irrespective of how loyal your customers have been to you, they will leave you for a better deal elsewhere. Loyal customers are the backbone of any business, and once that’s destabilized, your entire business might start crumbling. The only way to safeguard your existing customer base is by providing the best customer experience.


Brand advocacy

Brand advocacy is one of the most effective campaign strategies for any business. Satisfied customers often promote a product through word-of-mouth among other marketing strategies or share their experience with their community on social media platforms.

On the contrary, dissatisfied customers actively post negative reviews about an organization or its products to the extent that even prospective customers choose to shop elsewhere. 

With the power of the internet, you cannot ignore the significance of online reviews. Good reviews can bring traffic to your website and make you reach every household in no time.

Scale your business to new heights

There couldn’t be a better cause to emphasize how important is customer experience. Try to deliver a good customer experience whenever you build a new strategy. Focus on customers’ pain points and resolve them while providing the easiest solutions.

When a great customer experience becomes a part of your organization’s culture, your business scales to new heights, and you start outperforming your competitors and innovating new ideas that eventually elevate the customer experience.      

A positive experience encourages people to continue doing business with you. It promotes brand awareness and loyalty while retaining the existing customer base. Your customers are always on the frontline when it comes to advertising your brand.

How to Create and Improve the Customer Experience?

To improve the customer experience, you need to go through an astounding digital transformation that cannot happen overnight. However, you can start being mindful of a few things that can direct you towards a better customer experience. Here are five easy ways to help you create and improve the customer experience:

Create customer feedback loops

Feedback can offer you great insights into your customers’ expectations. It can tell you where your customers are stuck, what’s working, and what’s not working for your business. 

Feedback can also help you acknowledge the challenges your company faces to deliver good service. The key is to notice those loops and put your best foot forward.


Become omnichannel

Thanks to the World Wide Web, customers can hop from one platform to another even without realizing where they are.

Building an omnichannel experience requires you to go a step further and provide a consistent journey to your customers where your communication history travels with them from one channel to another.

Building a solid presence would not work alone; you need to create synchronicity between each channel so that you can offer a seamless and frictionless experience with better engagement and a higher conversion rate.

Incorporate personalization

In this digital age, one size does not fit all. If you want to retain or attract a new customer base, you need to deliver personalized services that show your concern for them. From email marketing to post-sale services, there is a bevy of opportunities for you to develop a personal bond with your customers.

You may also give unique offers and discounts based on their past purchases with your company and leave your customer with a positive experience.

Support your customers

If you understand the importance of customer experience, you might realize the significance of self-service solutions that go beyond the traditional customer service dynamic.

You can no longer simply react to your customers’ needs and requirements; you need to support them all the time proactively. With artificial intelligence in your system, you can serve your customers contextually relevant content even before they ask a question.

As you support your customers proactively and empower them through artificial intelligence, it can phenomenally boost your business’s conversion rate.

Read the data

To improve your customer experience, you need to dive into the data pool and understand what it is saying. You can use the data to read the stories about your customers or get some clues into many trends. These include customer satisfaction, the efficiency of the support organization, buyers’ persona and their varying behavior, and much more that can help you refine the whole process. 



In this digital world, customers have higher expectations than ever before. A single defect or a bad experience along the customer journey can direct them towards your competitors in no time.

And, that’s the reason why is providing a good customer experience important for your business’s continuous growth.

It has been found that ‘happy’ customers can help you generate around 2.5 times more revenue than ‘somewhat satisfied’ customers and a whopping 14 times more revenue than ‘somewhat dissatisfied’ customers. Moreover, you need to spend seven times more to bring prospective customers on board than nurture a relationship with your existing customer.    


1. What is a great customer experience?

A great customer experience is when a customer finds the outcome without much friction throughout the sales process. Moreover, it emphasizes customers’ values and is built with empathy in mind.
It has been found that people prefer to buy from a company that prioritizes equality and diversity amongst the communities than a company that offers just good products and easy transaction facilities.

2. What role does the customer service team play?

The customer service team collects customer feedback across the organization and tries to solve the pain points to ensure that the company meets the needs and expectations of its customers at the right time.

3. What are the three basic components of customer experience?

To create a good customer experience, you need to pay attention to the following three components:
1. Discover: Try to know where and how your customers are making purchases.
2. Engage: Develop a community where your customers can easily engage with your brand.
3. Deliver: Try to provide solutions to your customers’ pain points within the right time, and exceed their expectations.

4. What can cause a poor negative customer experience?

When a customer has to wait for the outcome for a longer duration or has to repeat the information multiple times, or any other such interaction when a company fails to meet the needs of customers can cause a poor customer experience.  

5. What are the benefits of creating a good customer experience?

A positive customer experience helps in customer retention and turns consumers into brand loyalists. With everything at their fingertips, people have many options to choose from. However, they are willing to pay more for the same product if a company provides the extra value through the sale process.