It’s no secret the retail industry is competitive. Every brand out there is looking for larger market share, more loyal customers, increased revenue, and lower churn, among other things. In such a MMA fight type atmosphere one area of opportunity is up for grabs each year, or really each minute. That area is #CX aka Customer Experience. Customer experience (CX) is the overall perception a customer has of a brand based on their interactions with it across all touchpoints and channels, including online and offline interactions. It encompasses every aspect of the customer journey, from pre-purchase research to post-purchase support, and can have a significant impact on customer loyalty and retention. A positive customer experience can make customers feel valued, build trust, and increase satisfaction, leading to repeat purchases and positive word-of-mouth recommendations. On the other hand, a negative customer experience can result in dissatisfaction, complaints, and negative reviews, potentially damaging the brand’s reputation and impacting its bottom line.
Forrester has identified a type of customer within customers that I think is really interesting and a cool way to look at the business. This subset of customers generates up to twice the revenue of typical customers and is far less likely to ever leave their favorite brand. Why is this section of customers so loyal? They’re having an excellent customer experience. These super-loyal customers have been dubbed as “devotees.” Devotees report a deeper level of engagement with a brand, greater value alignment, and an elevated emotional experience. Devotees feel more emotionally connected to brands, help acquire new customers by recommending the brand to friends and family as “brand ambassadors”, and generate far more revenue than other customers. For retailers, the average annual revenue per customer is $1,855 for devotees — or 109% more than for non-devotees ($886 average annual revenue according to Forrester). With supply chain issues, labor shortages, inflation, and other systemic risk factors still very much in the mix, retailers and brands must prioritize and invest to grow these super-loyal customers.
This article guides customer experience (CX) professionals on how to find their current devotees and how to convert more of their other customers into devotees. Customer experience (CX) professionals can find and convert their current devotees by taking the following steps: