Exceptional CX Enhances Brand Value

How Exceptional Customer Experience Boosts Brand Value

Distinguishing a brand from the multitude of competition is like solving a puzzle that weighs customer experience (CX) heavily combined with other things. Is it the quality of the products/services, impactful marketing, or perhaps the subtle yet lingering positive aftermath of exceptional customer experiences that makes a brand stand out? Often, it is all three.

Before we do a deep dive into how CX plays a vital role in boosting a brand’s market value, it is essential to grasp the essence of branding and the components that contribute to a brand’s overall worth.

What is Branding and Brand Value?

Branding is a strategic and cautious process of making your business stand out from the crowd. It involves crafting a compelling narrative or visual representation that eloquently conveys the brand’s core concept, purpose, and unique differentiators.

 

“People don’t buy what you do; they buy why you do it. And what you do simply proves what you believe.”  – Simon Sinek

 

The main objective of branding is to organically make space in the minds of the target audience and become their preferred brand for business. Fundamentally, branding is about creating a unique identity of its own so that the brand’s target audience can easily single out its products/services from all the other options present in the market.

Branding is intricately tied to storytelling and involves crafting an image and perception that resonates with consumers even before they consider purchasing a product or service.

Let’s take a nostalgic trip back in time…

Those who grew up in the 80s and 90s may fondly recall a candy called “Pop Rocks.” Packaged in an all-black wrapper adorned with neon-colored captions, it tantalized the senses. The stars on the wrapper hinted at the crackling, tingling sensation we’d experience when those fizzy candies touched our tongues. It was a truly unique encounter that most children and adults found to be fascinating, even still to the present day.

From this, we can safely conclude that building a brand encompasses various elements:

  • The product or service name
  • Packaging style
  • Tone of voice
  • Logo design
  • Color palette
  • Audio and video representation
  • Memorable taglines

Brand value, in simpler terms, refers to the monetary worth of a brand. Imagine if your company were to merge with another business or be acquired by them; if they wanted to use your brand name, logo, and identity to sell their products or services, the brand value would be the amount they would pay you for that right. Brand value underscores the market-based worth of your brand.

Why Quality Customer Experience is Important for a Brand

High quality or great customer experience is a holistic and gradual process of making a new/old/potential feel welcomed and understood. Contrary to the popular notion, it does not begin the moment before or after the consumer is done purchasing a product/service. It begins at the very moment a customer decides to choose or interact with a brand about something it has to offer.

Previously, brands primarily focused on product development/service planning and pricing the product according to the market’s expectations. This is also because customers had very little demand. They wanted a good-quality product/effective service at a reasonable price. Expectations were limited and simple.

The concept of customer experience was a sprouting seed in the 1900s, the era of mass production and standardization; a tiny sapling in the 1950s, the era of consumerism and variation; a well-grown plant in the 1980s, the era of globalization and personalization; and finally, a full-grown tree post the 2000s, the era of digitalization and virtual interactions.

With the advent of the Internet, coupled with technological innovations post-2000, consumers began to enjoy the benefits of social media, online shopping, and digital advertisements. Thanks to platforms like Google ads, YouTube ads, pop-up ads, and push notifications, brand awareness extended beyond the confines of television screens and billboards.

But with the rise in brand exposure, customer expectations also took an upswing. Consumers could no longer be lured with quality or competitive pricing for that matter. They wanted more. The more was ‘feeling important, feeling respected, and feeling understood,’ – the three must-haves of an exceptional CX journey.

If a brand wants to make a lasting impression in the customer’s mind, it’s a heavily followed notion that they must provide an experience that goes above and beyond. Whether it is catering to a customization request or ensuring a smooth after-sales reception at times of difficulty, a brand is capable of winning customers’ trust only if it treats them well.

What CX factors increase a brand’s value?

  1. Detailed Customer Knowledge:
  • Understanding potential customers should be a core task for upcoming brands. Effective customer listening, i.e. comprehending how a customer feels helps bridge the gap between what customers need and what the brand delivers.
  • Successful brands analyze and share these insights across the organizations to create positive customer experiences for customers.
  1. Customer-Centric Culture:
  1. Customer Preferred Channels:
  • Choosing the right channels for customer interactions matters. Brands must interact through channels that are generally preferred by the majority of their customers.
  • Whether it’s social media, live chats, or emails, selecting the right channels ensures effortless communication.
  1. Delivering Brand Values Through CX:
  • Exceptional CX aligns with the brand’s core values. It’s not just about meeting consumer expectations; it’s also about embodying what the brand stands for.
  • When a brand’s CX-related moves consistently reflect the brand’s motives, it reinforces trust and promotes growth.
  1. Emphasizing Experiences Over Purchases:
  • Prioritizing CX over transactions creates a pleasant and credible brand perception and drives long-term value.
  • Implementing customer feedback on future operations shows customers that they are valued.
  • Encouraging customers to share their personalization or convenience requests enhances the overall customer experience.

Understanding customers’ requirements, building a customer-centric culture, communicating through the right channels, ensuring experience-rich journeys, and aligning CX with brand ethics all contribute to increasing a brand’s value and ultimately its bottom line.

Learn how HGS cemented brand loyalty and trust for a leading coffee chain house in the UK

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