Customer Experience (CX): Meaning and Examples for a Small Shop
By Alva Chew · Updated
Definition Customer experience (CX) is the sum of everything a customer goes through when dealing with your business, from walking in and ordering to paying and coming back. In a small shop it is mostly speed, helpful staff and convenience. A loyalty program is part of it, so keep the earn and redeem steps short enough that they never slow the counter.
What is customer experience?
Customer experience, often shortened to CX, is how a customer perceives every contact they have with your business. It starts before the visit, when they find your opening hours or a menu. It continues through ordering, waiting, paying and leaving, and it includes anything that happens afterwards, such as a refund or a reward.
A customer does not score these steps one by one. They form one overall impression and use it to decide whether to return.
What does customer experience include in a café, restaurant or shop?
| Moment | What the customer notices |
|---|---|
| Arrival | Whether the shop looks open, clean and easy to walk into |
| Ordering | The wait, and whether staff know the product |
| Payment | How many steps it takes and whether the price matches what they expected |
| Loyalty | Whether joining and using points slows the counter |
| After the visit | Whether a problem is fixed and whether coming back feels worth it |
Customer service is only one row of this table. Queue length, payment steps and loyalty rules all belong to the experience too.
What do customers care about most?
PwC ran an international survey called Experience is Everything. It asked 15,000 consumers in 12 countries, and the results below come from its 27 March 2018 news release.
| Finding | Share of respondents |
|---|---|
| Speed and efficiency matter most | 80% |
| Knowledgeable and helpful employees | 78% |
| Convenience | 77% |
| Say a positive experience is among the key drivers of brand loyalty | 73% |
| Would walk away from a brand they love after one bad experience | 32% |
| Would stop doing business with a company over unfriendly service | 60% |
Source: PwC, Companies have lost the human touch in customer experience, news release, 27 March 2018. PwC surveyed 4,000 US respondents online and in the field in December 2017, and 11,000 respondents in 11 other countries in January 2018. The figures are stated attitudes from 2018, not measured behaviour in a shop like yours.
PwC also reports that price and quality remain top of mind when consumers make purchasing decisions. For a small shop the practical reading is simple. Speed, helpful staff and convenience are the things a counter can change today.
How is customer experience measured?
Three kinds of measure are common.
- Stated opinion. A short survey such as Net Promoter Score, where Bain’s system asks how likely customers are to recommend you on a 0 to 10 scale. Bain describes it as a way to act quickly on feedback to improve the customer experience.
- Behaviour. Repeat purchase rate and redemption rate show what customers did, and they cannot be inflated by polite answers.
- Staff observation. What the person at the counter hears and sees each day, written down once a week.
Stated opinion and behaviour can disagree. When they do, trust the till and ask why.
How does a loyalty program affect customer experience?
A loyalty program is one of the few parts of the experience that a customer meets at every visit, so it can help or get in the way. KPMG’s 2019 survey of more than 18,000 consumers in 20 countries is covered in our guide on why customers ignore loyalty programs. It found that many people find programs hard to join or to earn in.
Points keep the experience simple. The customer spends, earns and redeems, and there is nothing new to learn. Stamps, tiers, vouchers and games add rules, and each rule is another thing a customer must understand while a queue forms behind them. How a program fits into the busiest minutes is covered in the guide on launching a loyalty program at the counter.
What can you change this month?
- Time one ordinary transaction from order to receipt, and remove one step.
- Make sure each staff member can answer the five questions customers ask most.
- Ask the same one-question survey on the same day each month.
- Check that earning and redeeming points takes under a minute at the till.
Using it with Gimify
Customers join Gimify by scanning a QR code and entering their email, with no app download. The card lives in Google Wallet, and staff add or redeem points on any phone at the counter. The free plan covers one outlet with unlimited members.
Questions owners ask
What does customer experience mean?
It is the whole of a customer's interaction with your business, including the service, the wait, the product, the payment and any follow-up. Customers judge all of it together, not each step on its own.
Is customer experience the same as customer service?
No. Customer service is one part of it, the help a person gets from your staff. Customer experience also includes things like queue length, how easy it is to pay and how simple your loyalty program is to use.
How do I measure customer experience in a small shop?
Use a few simple signals. Ask the same short question each month, such as a Net Promoter Score survey, and read it next to repeat purchase rate and redemption rate, which show what customers did rather than what they said.
What matters most to customers?
In PwC's 2018 survey of 15,000 consumers, speed and efficiency (80%), knowledgeable and helpful employees (78%) and convenience (77%) ranked highest. That is one survey from 2018, so test it against your own customers.
Does a loyalty program improve customer experience?
It can, if joining, earning and redeeming take seconds. A program with rules customers must learn adds effort instead. Points are the simplest version, because customers already understand spending and earning.
How often should I review customer experience?
Monthly is enough for most small shops. Use the same questions and the same method each time, so a change in the score reflects a change in your shop and not in how you asked.
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