How customer experience drives business growth

Have you ever stopped to think about how customer experience drives business growth? If not, it’s definitely time to start considering the effects of customer experience.

As a business owner, the experience you provide to customers is the one thing you have absolute control over and is the primary way to differentiate yourself from the competition. Excellent customer experience with your brand leads to loyalty, word-of-mouth marketing, and revenue growth. On the other hand, a poor customer experience can destroy your business.

This article explores why customer experience (CX) should be top of mind for your business. It also provides tips to help you deliver experiences that dazzle your customers and drive real results.

What Is Customer Experience Strategy and Why Does It Matter?

Customer experience strategy refers to the measures you take to improve the overall experience your customers have with your business. It includes every interaction, from surfing your website to receiving customer service. Providing a great customer experience is critical to business growth and success.

A 2020 study by Walker shows that customers will pay more for a great experience and that customer experience is poised to overtake both price and product as the number one brand differentiator. If you want your business to thrive, focus on creating memorable experiences that turn first-time customers into lifelong fans.

Why Does It Matter So Much? 

Simply put, happy customers drive revenue and growth. Satisfied customers are loyal and will continue to purchase from you. They’ll also refer other customers through word-of-mouth marketing, one of the most effective ways to gain new business — 93% of respondents from a study say they trust recommendations from family and friends.

On the flip side, dissatisfied customers won’t stick around. They may never buy from you again and will likely tell others about their bad experience, damaging your reputation and bottom line. It’s generally more expensive to acquire a new customer than retain an existing one, so focusing on customer experience remains a sound business decision.

4 Benefits of Focusing on Customer Experience

Focusing on customer experience (CX) provides significant benefits for businesses.

benefits of focusing on customer experience

Here are four reasons why customer experience matters:

  • Happier, loyal customers
  • Increased revenue and profits
  • Lower costs
  • Competitive advantage

Happier, Loyal Customers

When you deliver great CX, your customers feel good about interacting with your brand. Happy customers become loyal customers, choosing your business over competitors and spreading positive word-of-mouth. Studies show that loyal customers are 5x as likely to repurchase, 4x as likely to refer others, and 5x as likely to forgive your mistakes.

Increased Revenue and Profits

Loyal, long-term customers spend more — on average, loyal customers are worth up to 10x as much as their first purchase. Focusing on CX is critical to gaining these high-value, lifetime customers.

According to research, brands that lead in CX achieve faster growth, higher revenue, and more robust financial performance. More specifically, a 5% boost in customer retention rates—an outcome of excellent customer experience—can result in a 25–95% increase in profits.

Lower Costs

Satisfied customers require less hand-holding and troubleshooting. They need fewer returns or refunds and are less likely to switch to competitors, reducing customer acquisition costs. Studies show that acquiring a new customer can cost 5x more than retaining an existing one while selling to an existing customer has a 60–70% success rate compared to 5–20% when selling to new customers.

Competitive Advantage

Customer reviews and social conversations shape brand perceptions in today’s connected world. Companies that deliver outstanding CX gain a reputation for excellent service, outdoing their competitors by a whopping 80%. This competitive advantage is hard for others to copy, as CX depends on company culture and how well you understand your customers’ needs.


Focusing on CX is a win-win. Customers get the desired experience, and your business gains growth, profitability, and a competitive edge. Now, isn’t that worth investing in? Book a free consultation with the Unwired Logic expert team to learn how we can help you optimize your business customer experience via automation and other strategies.

How to Impact Customer Experience? 5 Tips for Developing an Effective Strategy!

Developing a compelling customer experience (CX) strategy is vital to business growth.

Customer experience strategy development

To build a great CX, adhere to these five tips:

Understand your customers: Conduct surveys, reviews, and interviews to learn who your customers are and what they want. Identify critical personas based on demographics like age, location, and buying preferences. Map their journeys to see how they interact with your business while looking for pain points and opportunities to improve their experience.

Map the customer journey: The customer journey spans every touchpoint in the lifecycle, from initial brand awareness to purchase and beyond. Map each step of the journey for your key personas to identify gaps. Look for ways to optimize each interaction and transition between touchpoints. Make the journey as seamless and positive as possible.

Focus on relationships, not transactions: Don’t just see customers as one-time buyers. Build lifelong relationships by providing value at each interaction. Engage customers with personalization, loyalty programs, subscriptions, and community building. Make them feel appreciated and excited to continue doing business with you.

Continuously improve: Regularly monitor customer feedback and make changes to address concerns. Update your CX strategy as needed to match the needs of your evolving customers and business. Look for new technologies that can enhance the experience.

Empower employees: Your employees are the face of your brand; empower them by educating them on your CX strategy and key personas. Encourage a customer-centric mindset through incentives, digital transformation strategies, and leading by example. When employees feel engaged, it translates into better experiences for your customers.

By gaining a deep understanding of your customers, crafting their journey, focusing on relationships, as well as continuously improving and empowering staff, you’ll develop an unbeatable customer experience. Your customers will become raving fans, driving sustainable growth.

Insight Into Technology’s Role in Customer Experience and How It Can Be Leveraged

Technology plays an integral role in how customer experience drives business growth. Leveraging the right technologies can help streamline interactions, gain valuable customer insights, and build loyalty.

Here are three key areas where technology has been crucial to improving businesses CX:

  • Data and analytics
  • Omnichannel experience
  • Emerging technologies

Data and Analytics

Collecting and analyzing customer data is vital to understanding their needs and preferences. Surveys, social media monitoring, and web analytics provide information on your customers’ experiences, frustrations, and desires. Look for trends and opportunities to enhance interactions.

A popular tool used for data collection is customer relationship management (CRM), a software that organizes all your customer information in one place. With a complete view of each customer, you can personalize communications and anticipate their needs. This allows you to send targeted emails, offer product recommendations, and resolve issues efficiently.

Omnichannel Experience

Today’s customers engage with brands across many channels: in-store, online, mobile, social media, phone, chat, and more. Digitally transform your business to provide a seamless experience across channels so customers can pick up where they left off and feel heard at every touchpoint.

For example, allow customers to buy online and pick up in-store or start an order on the phone and finish on your website. Sync data across channels so customers don’t have to repeat information. Respond to social media comments and messages and online reviews promptly, too.

Emerging Technologies

Virtual and augmented reality can enhance customer experience by allowing people to interact with and experience your products remotely. Chatbots and virtual assistants are available 24/7 to help customers with questions and basic tasks like returns or refunds.


Though technology plays an important role, a human touch is still vital. Combine high-tech and high-touch by using technology to complement fundamental human interactions, not replace them. When technology and human connection work together, the result is an impeccable customer experience. Focusing on customer needs will drive business growth, and we can help you achieve this with our strategic solutions.

Frequently Asked Questions

How does customer experience benefit my business?

Here are some of the benefits of CX:

Increased customer loyalty and retention: Happy clients keep coming back and telling their friends.

More word-of-mouth marketing: Satisfied customers share their experiences with others, which is the best publicity.

Improved brand perception: Good experiences shape how people view your company and products.

Increased sales and revenue: Customers buy more and pay higher prices from businesses they enjoy interacting with.

What are the main drivers of customer experience?

Three primary factors drive customer experience, including interactions, environment, and emotional factors:

Interactions: How clients engage with your business at every touchpoint, whether in-person, on the phone, via chat, or through your website and social media. Polite, helpful, and knowledgeable interactions are essential.

Environment: The impression you convey through your brand, products, services, and workplace — things like cleanliness, design, ease of use, and functionality matter.

Emotional Factors: How you make customers feel during and after interactions. Businesses that create positive emotions like happiness, excitement, or being valued will have the most success.

How can I improve the experience for my customers?

Here are a few best practices to enhance your customer experience:

Focus on your employees first: Happy, well-trained staff will provide the best service.

Simplify processes and make them easy to navigate: Remove pain points and obstacles.

Listen to customer feedback and make changes: Their input can spotlight areas that need improvement.

Personalize interactions: Use data to tailor offerings to individual needs and build relationships.

Be transparent and set proper expectations: Communicate openly to avoid confusion, frustration, and disappointment.

Go above and beyond: Exceed expectations with extra perks or by handling problems efficiently. Customers will appreciate your effort.

Review how all parts of the customer journey feel and function: Make consistent updates to please your clients consistently.


This guide has explained in detail how customer experience drives business growth and how to apply it to your business.

When you focus on providing a fantastic experience at every touchpoint, you build loyalty and word-of-mouth marketing. Satisfied customers become repeat customers and your biggest advocates; they’ll spread the word about their great experience with your brand on social media and in their communities. Before you know it, new customers will be knocking at your door.

And the best part is, the more you improve the experience, the more your customers will reward you. It’s a win-win situation for your business and your customers.

So what are you waiting for? Start improving your customer experience today and watch your business grow. You can always contact us at Unwired Logic to guide you through the most effective strategies for enhancing customer experience for your business.

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