CX Strategies That Drive Retention and Profitability

Improving the overall customer experience (CX) is essential for client retention and ROI growth. An effective CX strategy can help businesses retain clients even when competitors offer lower prices, ensuring higher long-term profitability.

The desire to remain competitive makes companies eagerly focused on the next competitive advantage for their firms, especially when considering advanced technology, new products, or upcoming announcements to secure new business.

Ross Solomon, head of product management at financial solutions firm Broadridge, believes that firms must not lose sight of the big picture — their existing customers. He argues that CX is not what gets customers in the door but keeps them from switching to competitors, even when the competition is cheaper.

According to Solomon, corporations struggle with this reality. Broadridge’s sixth annual CX and Communications Consumer Insights Survey found that:

• 70% of consumers believe companies need to improve CX, double compared to 35% in 2019.
• 45% of consumers have stopped doing business with a company because it did a poor job customizing their experience.
• Two-thirds of respondents reported being concerned about their data being compromised due to AI.

CX plays a crucial role in both attracting and retaining customers. However, it is not just about making a good first impression upon acquiring and onboarding a new customer, he reasoned.

“It is also about consistently delivering a positive and memorable experience throughout the entire customer journey that ultimately encourages customers to stay loyal to brands,” Solomon told CRM Buyer.

How CX Strategies Build Business Success

Consistently improving upon customer experience is a vital goal. When customers feel valued and receive seamless, innovative, and personalized experiences, they are less likely to switch to competitors, even when other options are available. A strong CX strategy is key to building long-term customer relationships, retaining customers, and driving sustainable business growth.

Solomon maintains that marketers and CRM platforms can play a crucial role in enhancing CX and creating customer loyalty. They can help achieve this through a combination of three strategies.

One is personalization. By leveraging customer data, marketers and CRM platforms can create personalized campaigns that resonate with individual preferences. They can also leverage data to segment their audience to deliver targeted content.

Personalization fosters customer loyalty by addressing individual preferences, he noted.

A second method is customer journey mapping. This strategy involves understanding and mapping the customer journey to help marketers identify key touchpoints where they can engage and delight customers, as well as identify potential pain points. Customer journey mapping helps to ensure meaningful interactions aligned with the customer’s needs.

The third element is customer feedback looping. Gathering customer feedback is essential for understanding their needs and pain points.

“We can use this feedback to refine and enhance the product and improve the overall experience,” he suggested.

Centralized Communication for Customer Satisfaction

Companies undergoing growth transformations must establish clear communication and support channels through a centralized system. All customer interactions should funnel through clear, consistent channels, whether via email, social media, phone, or live chat.

“Centralization prevents confusion and ensures customers always know where and how to reach out,” explained Solomon.

During periods of growth or transformation, it is also important to set up a superior customer support model, he observed. For example, companies need a dedicated customer support team to handle increased inquiries during these periods.

Efficient communication happens through leveraging CRM tools’ technology and automation to manage customer interactions. These tools can help track conversations, ensure timely follow-ups, and provide a seamless experience.

“Leverage automated systems to acknowledge customer inquiries immediately and inform customers of next steps and expected response time,” he added.

Communication also must be transparent and proactive. Regular updates keep customers informed about changes that might affect them, such as new policies, product updates, or service adjustments.

“Proactive outreach goes a long way as it shows a commitment to anticipating potential customer concerns to prevent escalations,” Solomon explained.

Latest CX Trends for Managing Retention and ROI

Hyper-personalization uses real-time data and artificial intelligence (AI) to deliver highly tailored experiences at every touchpoint, including personalized product recommendations, dynamic content, and customized messaging based on individual behavior and preferences.

Providing uniquely tailored experiences to each customer empowers businesses to increase engagement and loyalty significantly. Solomon says this is essential to achieving higher retention rates and better ROI.

So are AI-driven customer insights. He recommended using AI to analyze vast amounts of customer data to uncover deep insights into customer behavior, preferences, and pain points. Predictive analytics can help companies anticipate customers’ future needs, prevent churn, and personalize experiences at scale.

Omnichannel CX aligns with customers’ expectations for a seamless experience across all channels. It covers all client bases, whether they are interacting with a brand via social media, mobile apps, websites, email, or any other channel.

“Omnichannel CX ensures that these interactions are consistent and connected. A unified experience across channels can reduce friction, increase customer satisfaction, and boost loyalty,” Solomon said.

Breaking Down Barriers to Effective CX

Many companies struggle with fragmented customer data spread across multiple departments and systems. This broken data silo can lead to inconsistent customer experiences, Solomon cautioned. Different teams might have incomplete or outdated information.

“Integrating data across all touchpoints and creating a unified customer view is crucial. Investing in a robust CRM system or data management platform can help break down silos and ensure that all teams have access to accurate, real-time customer data,” he said.

Striking the right balance between using data to personalize interactions and respecting customer privacy can be difficult. Customers expect personalized experiences, but they also value their privacy, added Solomon.

Technological pace makes it difficult for companies to keep their CX tools and strategies current. Falling behind on technology leads to outdated customer experiences that fail to meet modern expectations.

“Continuous investment in new technologies and a commitment to staying ahead of trends are essential. This might involve adopting new tools for customer engagement, leveraging AI for better insights, or exploring new channels,” he concluded.