AI and off-the-shelf software are leveling the field when it comes to developing digital products and services. Yet, despite these advancements, many of these products struggle to gain traction. The root cause? Overlooking the crucial role of design and customer experience (CX). No matter how advanced the tools, without crafting an experience that captivates and engages, even the most cutting-edge product risks blending into the background.
Why is design and CX so important?
AI and new software may help develop a new product, but they can’t fix a bad customer experience. Good design is NOT just about aesthetics and functionality. It’s about creating a meaningful emotional connection with your customer.
The best products have a habit-forming design that taps into the psychology and emotions of the audience. They use positive reinforcement to reward desired behaviors, making the experience enjoyable and irreplaceable for the user.
A detailed study conducted by McKinsey and Company revealed a direct correlation between good design practices and business performance. According to this study, the highest-scoring companies achieved 32 percentage points higher revenue growth and 56 percentage points higher returns to shareholders compared to their competitors.
The study unequivocally concluded that the market disproportionately favors companies that excel in customer-centric design.
How leading companies leverage CX
Leading companies understand the importance of customer experience (CX) and consistently invest in refining their design. For instance, Glossier, a DTC brand that has always been closely engaged with its consumers. Their blog serves as a platform for beauty enthusiasts to share their thoughts, seek advice, and discover new products. This is what created a cult-like following for the brand, and during its first product launch, over 15,000 engaged and excited customers waited in line.
Similarly, Monzo, a UK-based challenger bank, focuses on aspects of traditional banking that frustrate customers. They introduced transparent fees, simplified services, and an easy-to-use mobile app that appealed to the target audience. Due to customer-focused initiatives such as “Golden Tickets” and “Product Roadmaps,” Monzo has gained over 2 million customers.
Our case studies tell a similar story.
In one of the projects executed by our experts, we developed and implemented a coworking space management solution for our client from scratch. We conducted over 10 focus groups and mapped the user journeys over 5 days to uncover unique insights about user behavior. Our observations enabled us to develop a custom mobile application that provides seamless access to coworking services and integrations. This approach led to a significant transformation in our client’s operations, which facilitated over 10,000 bookings across 15 different locations in the first year alone.
Four steps to improve customer experience
There are several practical ways to elevate your customer experience:
- Shift your mindset: Understand that you are running a customer experience business and not just a product or service business. This simple mindset shift will help you build up your design with the end user in mind.
- Focus on the overall journey rather than the performance of individual touchpoints: According to a McKinsey survey, customer satisfaction was 73% higher when a customer journey was well-planned, rather than focusing on individual touchpoints. Customers experience companies through the end-to-end experiences, not single points of contact.
- Leverage behavioral psychology: Incorporating a layer of behavioral psychology into the design process can yield significant value. Studies show that implementing behavioral psychology elements, such as offering users options to give them a sense of control or concluding a sequence of interactions on a positive note, can improve customer satisfaction scores by up to 9 points.
- Quantify what matters to your customers: Quite often, initial assumptions about customer behavior can be challenged and overturned, leading to a better-performing design. Combine data from various functions to understand what satisfies your customers and which customer behaviors generate economic value.
A practical approach
It can be challenging to convince stakeholders to adopt a user-centric design approach throughout their company’s culture. Instead of overhauling everything at once, start with one project. Commit to making CX the core design philosophy. Aim to create a product that seamlessly integrates into your customer’s lifestyle. Use customer feedback to develop prototypes and continuously test them until you achieve the desired Customer Satisfaction (CSAT) rating.
Conclusion
It is evident that to develop a successful product and achieve consistent business growth, companies must adopt a customer-centric design philosophy. Investing time, energy, and finances in CX enables companies to achieve significant increases in revenue, ROI, and customer loyalty. Remember, customers experience companies through end-to-end experiences. Aim to perfect the entire journey and not just individual touchpoints.
