How Does Customer Experience Impact Sales?

customer experience impact on sales

What is your SaaS company’s customer experience like? How does customer experience impact sales? 

Often overlooked, customer experience, whether good or bad, is directly linked to your sales and revenue. While avoiding a bad customer experience is good, adopting a great customer experience is better! 

It’s a simple but effective way to breathe life into your sales cycle, increase customer loyalty, and maximize profits. 

To get a feel for just how important the customer experience is, let’s take a look at what it is and how it can affect your sales. 

What Is the Customer Experience? 

Customer experience refers to the experience a customer has with a company during the SaaS sales cycle. Every single interaction, from prospecting to closing, affects the customer experience. 

Customer experience is integral to sales and marketing for SaaS. Even if your software is good and offers a balm to their pain points, a bad customer experience can turn prospects away. 

The Links Between Customer Experience and Sales

The biggest SaaS brands know that you need to maximize the customer experience to make sales. For newcomers, it might not be a priority. 

To understand just how much your customer experience can affect your profit margins, let’s examine common ways the customer experience impacts sales. 

  1. Customer Experience Drives Brand Loyalty 

Customers interact with SaaS companies a lot throughout the sales cycle and sales pipeline. There’s the initial contact between your company and client, demo-ing experiences, negotiations, upselling – the list goes on and on. 

Every one of these interactions affects how the customer feels about your SaaS company. When the customer experience is good, customers learn to trust your brand and develop brand loyalty. 

If you doubt the power of brand loyalty, consider these two crazy statistics: 

With good customer experience and increased customer loyalty, you can expect to see massive gains in return customers – for both short and long-term gains. 

  1. Retention Is More Cost Effective Than Acquisitions

When any company establishes its marketing budget, it includes two key points. 

First, acquiring customers. This requires target audience research, marketing campaigns, social media advertising, content creation, etc. There’s a lot that goes into getting customers. It’s expensive. 

The second prominent marketing tactic is customer retention. This is done after the customer has become a software user and includes the steps a company takes to keep the customer coming back for more. 

How do companies do this? Through great customer experience! If your software and the customer experience are great, clients will naturally want to continue working with you or choose to upscale their software. 

While customer acquisition is essential (we’re not suggesting you stop acquiring new customers), customer retention and experience should also be a priority  – especially when you consider the cost. 

Customer retention doesn’t require the budget that acquisitions do but it’s got a higher guarantee on return, meaning a higher ROI. 

  1. Free Marketing 

Another high ROI point for effective customer experience is free marketing. As we’ve established in the above points, a great customer experience increases customer loyalty. 

What do people who love a software service do? They talk about it!

In SaaS, this is especially effective because software features are vague and confusing for most laymen. When someone recommends a good software option, it’s much easier to go for the known option than looking for another one with no personal sponsorship. 

Good customer experience leads to brand loyalty, which then leads to free marketing. It’s a win-win. 

  1. Companies With Good Customer Experience Do Better 

We can talk about the benefits of putting more effort into the customer experience all day. But let’s take a look at cold hard facts. 

Here are some statistics that showcase just how much better customer experience-focused companies do. 

  • Companies that incorporate better digital customer experience are 26% more profitable than those that don’t. 
  • Companies that focus on improving their customer experience are 60% more profitable than companies that don’t consider customer experience important. 

The proof is in the pudding. It’s clear just how much of a positive impact good customer experience can have on a business. 

  1. Happy Customers Spend More 

While SaaS is different from traditional products in the fact that consumers aren’t coming back for more physical products, customer retention is still critical for long-term partnerships with people. It’s also important to have a good experience with customers if you want to upsell your software or introduce them to different software under your company banner. 

Customer experience is a surefire way to increase your chances of success. 

Customers are willing to spend up to 140% more on a brand after having a good experience. Customers are also willing to pay more for products, including SaaS if they know the customer experience and service are good. 

In Conclusion

Customer experience refers to the experience a customer has with a company. Now part of the digital landscape, customer experience can have a big effect on your SaaS company’s revenue. 

When you combine the low cost of customer retention plus the gain of return customers willing to pay more, the picture becomes clear. Customer experience does affect sales. Specifically, good customer experience can drastically increase your sales. 

Software companies with goals of industry domination must adopt personalized customer experience services. One surefire way to do that is to offer personalized product demos. 

Saleo is the first and only live sales demo environment. Create interactive and data-driven demos of your software and wow your clients. Request a Saleo sales demo today

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Brian Cody

VP of Sales Engineering, Clari

Michael Stanczak

VP of Enterprise Sales, illumin

Ryan Splain

Principal Demo Solutions Engineer, Salesloft