There’s no doubt that Customer Experience (CX) in 2024 is going to be ripe with some new changes and challenges, especially within the digital retail space. However, as the latest trends point out, one of the definitive factors that will alter the customer-brand relationship this year will be emotional experience.
Brands that are serious about delivering a better customer experience and retaining their position in the market will focus a lot on understanding customers at an emotional level, taking feedback seriously, and aligning their strategies with the values endorsed by their clientele. “A deeper, more dynamic understanding of how sentiment affects loyalty, satisfaction and advocacy scores will be core to CX strategies in 2024, helping to build stronger and longer-lasting relationships,” stated also Bernard Marr in an article in Forbes.
Let’s look at it from the beginning.
What is Emotional Experience?
Emotional Experience refers to how customers perceive a brand emotionally. It looks at a deeper form of engagement between the customer and brand where communication and interactions are driven by customer sentiments. Emotional Experience is an integral element of CX, and it helps businesses understand their clientele effectively and cater to their expectations well.
The Emotional Value Index (EVI) is a metric designed to measure and evaluate EX. The survey provides an array of emoticons and asks customers to select one that best expresses how they feel at the time. With each emoticon given a weighted average, calculating EVI is as simple as any other CX metric. You can look at our detailed guide to learn more about measuring EVI.
Why Emotional Experience?
The majority of customer decisions are propelled by emotions and instincts. While quality products, optimal pricing, and brand image all play an important role, a stellar customer experience driven by emotional intelligence is what makes a rational customer a happy customer, and thereby, a recurring customer. This is because such an experience connects the customers with the brand at an emotional level. It is the brand differentiation that’s going to help you thrive during the difficult times.
Let’s not also forget that customers aren’t short of choices today. So, when sifting through a pool of similar products, they will choose businesses that walk the extra mile for them and make their shopping experience a ‘wow’ factor. They will be more inclined to shop with brands that offer ultra-personalized services through relevant product suggestions, prompt customer support, and hassle-free return policies.
At the same time, offering a better emotional experience also encapsulates seemingly far-reaching factors such as adopting sustainable and ethical work practices and offering fair pay and working conditions for employees. Therefore, brands that look at the bigger picture and offer ‘feel good’ moments are likely to stay ahead of the game.
Emotional Experience for Customer Retention
The global economic conditions are not so favorable at present, as there’s a decline in aggregate demand across many industries. This paired with the rising costs, makes it challenging for businesses to stay afloat. Depending on your company’s performance, you will have to cut back on a lot of things, from research to marketing spend. Needless to say, attracting new leads will be a costly affair.
Amidst these difficulties, you can improve your revenue through retention. Understanding your existing customers with empathy, listening to their complaints, and improving CX can foster loyalty. Emotions are a strong determinant of the actions of customers, and by offering a hassle-free experience, brands can evoke positive emotions that lead to high spending and impulsive purchases.
Data shows that customers are 40% more likely to make a purchase if they experience positive emotions rather than negative ones.
More Leads and More Sales
Customers are not just inclined to support brands that showcase emotional intelligence. They also spread the word around, and this free word-of-mouth marketing can help your brand attract clients without spending a lot on marketing campaigns.
For a more strategic approach, it’s critical to pair EVI data with sales/revenue data to understand how emotional experience impacts revenue generation. Through this correlation, you will be able to gain valuable insights about emotions that drive sales and emotions that lead to high customer churn rates. This is where the gold lies.
Would like to learn more?
Watch a recording of the webinar Expert Tips for Using Customer Emotion Data in Improving Business Results where Jaakko from Feedbackly shows practical examples of how any business can use data about customer emotions in action-taking.
