How to Improve Customer Experience: Strategies & Tips | Nextdoor

Customer experience (or CX) is everything for businesses, especially in today’s connected world. The holistic experience often determines how they feel about your brand, what they post about it online, and whether they’ll recommend you to their friends (a make-a-break for many local businesses). 

In many cases, it can be the key determinant in whether customers frequent (or return to) your business. Research shows that nearly 45% of businesses around the world consider customer experience a primary competitive differentiator. 

If you’re wondering how to improve customer experience in your business, start with these six strategies.

#1 Assessing your current customer experience

Meaningful change starts with a clear understanding. Begin by using customer satisfaction surveys and metrics to gather feedback. For example, the Customer Satisfaction Score (CSAT) measures a customer’s contentment after a certain interaction, such as a shopping experience. You could send out a post-purchase survey in the same email as their digital receipt (with a small incentive or discount to encourage participation), or solicit feedback from a list of frequent customers.

You can also gauge your Net Promoter Score (NPS), calculated using only one question: “How likely are you to recommend our business to others?” You’ll receive a score between -100 and 100 (the higher the better), which you can analyze over time to identify improvements (or dips) in the total experience. Try adding this question to your same post-purchase survey or as the last screen in the checkout experience.

#2 Foundational strategies for improving customer experience

Many businesses are asking how to improve customer experience to deliver the greatest impact. One survey found that nearly half of respondents claimed that their current customer experience is either “below” or “significantly below” their customer expectations. This means that if you’re eager to improve your customer service experience, you’re not alone.  

Here are some strategies to keep in mind:

• Employee empowerment – Train staff to properly handle every type of employee and customer interaction, from simple transactions to more challenging situations. These skills tend to be best learned by replicating real-world scenarios rather than simply discussing them.

• Consistency – Make sure the experience in one area (in-person dining, for example) matches the experience across the others (making a reservation, browsing the menu online, calling the host to ask questions about cross-contamination). After deciding your business’s values and standards of excellence, walk through the entire experience to determine how those principles manifest in each unique touchpoint.

• Speed and convenience – Studies show that customers are more likely to stick with a brand when their problems are solved quickly and that a majority of customers will spend more to have a problem solved where they already are. If you can streamline sections of your process through automation, you can make life easier for your buyers. 

#3 Advanced customer engagement techniques

To consistently figure out how to improve customer experience in your business, you can use these advanced customer engagement techniques as the foundation for your execution. These can help you create a positive experience across the board:

• Emotional connection – Help your customers establish a personal connection with your brand by providing them with tailored experiences. You can use customer data analysis, AI, and different digital tools to understand and leverage customer behavior and preferences. 

• Community building – Leverage forums, social media, and local events to foster customer relationships. This way, customers won’t just feel like they’re transactionally interacting with a store but instead like they’re spending time and money at a neighborhood staple. For example, Skin by Lexie, a skincare studio in California, was able to build up a reputation by leveraging Nextdoor to not only promote her business but also earn trust and credibility through positive testimonials—from her community.  

• Proactive support – Customer service involves reactively responding to customer issues and needs. Improving customer experience is about providing proactive support to help guide the overall customer experience and avoid issues in the first place. Look to surveys and previous complaints to anticipate future customer needs and address them preemptively. Additionally, you can share your expertise via tips and other relevant content just like real estate agent Joe Kennedy did on Nextdoor, positioning himself as a credible and helpful real estate professional. 

See more on customer service vs. customer experience in our guide. 

#4 Technology-driven customer experience enhancements

Many tools and technologies can help you enhance customer experience marketing, including chatbots and AI for 24/7 customer support. These technologies can provide instant answers to common questions and potentially even respond to custom queries.

Beyond that, you can use a Customer Relationship Management (CRM) system to organize, store, and analyze customer data. With the right information captured, your marketing team can send customized emails and promotions. You can also deliver a highly personalized service when greeting a returning customer by referencing their preferences and habits gathered over time.

Learn more about digital customer experience strategy in our blog.

#5 Creating a feedback-driven culture

Gathering feedback is step one in improving customer experience. Step two is to implement (or simply address) it in a way that makes the customer feel seen and valued. 

With effective feedback loops, you’re constantly delivering the experiences your customers are craving: an easier way to order online, a fix to that glitch everyone is mentioning in their reviews, a more comfortable, private dressing room.

Oftentimes, a few vocal customers can clue you into what the general public might be thinking. Not only are you validating the individual shoppers who complained about a previous problem, but you’re also improving operations for every new customer you acquire.

#6 Rewarding customer loyalty

Your returning customers are already your greatest asset for growth. Giving them a little something extra only makes them more likely to sing your praises and patronize your business indefinitely. 

Whether it’s a simple punch card or a high-tech program that tracks every in-app purchase, these programs can improve customer sentiment, gamify the experience (“Just one more coffee ‘til I earn my prize!”), and increase retention. 

Leverage the power of customer experience 

Knowing how to improve customer experience in your business can make all the difference in your conversion, retention, and satisfaction rates. Start by assessing your current customer experience before turning to ideas and practices that can improve outcomes across all facets of your business.

If you want to reach more high-intent customers in your neighborhood, Nextdoor Ads Managers can put you in front of those friendly faces. Use Nextdoor Ads Manager to precisely target your audience, track conversions, and scale as needed. Get started with Nextdoor Ads Manager today.

Sources: 

1. Statista. Share of professionals perceiving customer experience (CX) as a competitive differentiator for their organization worldwide in 2021. https://www.statista.com/statistics/1076074/organizations-customer-experience-competitive-differentiator-worldwide/ 
2. Martech Alliance. Customer Experience (CX) Trends & Insights. https://www.martechalliance.com/hubfs/eBooks/Treasure%20Data/2021-Customer-Experience-Trends-%26-Insights.pdf
3. Zendesk. 35 customer experience statistics to know for 2024. https://www.zendesk.com/blog/customer-experience-statistics/