Making Money On-line: Experience, Not Conversion, is the Key to the Switching Economy

Monday, 21 May 2018

Experience, Not Conversion, is the Key to the Switching Economy

In a world increasingly defined by instant-gratification, the demand for positive and direct shopping experiences has risen exponentially. Today’s always-on customers are drawn to the most convenient products and services available. As a result, we are witnessing higher customer switching rates, with consumers focusing more on convenience than on branding, reputation, or even on price.

In this switching economy – where information and services are always just a click away – we tend to reach for what suits our needs in the shortest amount of time. This shift in decision making has made it harder than ever for businesses to build loyalty among their customers and to guarantee repeat purchases. According to recent research, only 1 in 5 consumers now consider it a hassle to switch between brands, while a third would rather shop for better deals than stay loyal to a single organization.

What's Changed?

The consumer mindset for one. And the switching tools available to customers have also changed. Customers now have the ability to research extensively before they purchase, with access to reviews and price comparison sites often meaning that consumers don’t even make it to a your website before being captured by a competitor.

This poses a serious concern for those brands that have devoted their time – and marketing budgets – to building great customer experiences across their websites.

Clearly this is not to say that on-site experiences aren’t important, but rather that they are only one part of the wider customer journey. In an environment as complex and fast moving as the switching economy, you must look to take a more omnichannel approach to experience, examining how your websites, mobile apps, customer service teams, external reviews and in-store experiences are all shaping the customers’ perceptions of your brand.

What Still Needs to Change?

Only by getting to know your customers across all of these different channels can you future-proof your brand in the switching economy. To achieve this, you must establish a new set of metrics that go beyond website conversion. The days of conversion optimization being viewed as the secret sauce for competitive differentiation are over; now brands must recognize that high conversion rates are not necessarily synonymous with a great customer experience – or lifetime loyalty.

Today, the real measure of success does not come from conversion, but from building a true understanding of your customers – across every touchpoint in the omnichannel journey. Through the rise of experience analytics, you finally have the tools and technologies needed to understand customers in this way, and to tailor all aspects of your brand to maximize convenience, encourage positive mindsets and pre-empt when your customers are planning to switch to a different brand.

It is only through this additional layer of insight that businesses and brands will rebuild the notion of customer loyalty, and ultimately, overcome the challenges of the switching economy.

Want to learn more about simplifying and improving the customer experience? Read Customer Experience Simplified: Deliver The Experience Your Customers Want to discover how to provide customer experiences that are managed as carefully as the product, the price, and the promotion of the marketing mix.