In today’s experience-driven economy, customers aren’t just purchasing products or services — they’re investing in the entire experience. Even the best product on the market won’t guarantee customer satisfaction or loyalty on its own.
Liezel Jonkheid is the director and founder of the Consumer Psychology Lab. Source: Supplied.
Not knowing and understanding your customers experience (CX) is the silent killer of small and medium businesses (SMBs). Far too many SMBs believe that customer feedback programs are the domain of large businesses with big budgets. It’s a costly myth, since customer feedback is the key to creating sustainable competitive advantage.
The experience economy demands more than a great product
Transactional focus, such as ‘get the product, deliver it efficiently, minimize errors’, describes value in terms of functionality and efficiency. However, today the approach needs to be more relational and experiential, where customers are seen, valued and respected.
Furthermore, customers are spoiled for choice and loyalty is only skin-deep. Price is not the only driver! At the core of the experience economy, is how you make people feel matters as much as what you offer! Of course, your offering still needs to work. But when your product is functional AND your service is effortless, responsive, and pleasant, your business becomes truly resilient - even in tough economic times.
Shep Hyken’s 2024 research backs this up:
- 59% of customers will pay more for a great experience - but only if it justifies the cost.
- One in four satisfied customers still won’t return - because satisfaction isn’t the same as loyalty.
- 81% are willing to switch brands if they believe another offers a better experience.
- 75% are more likely to return after seeing how well you handle a negative review.
Research consistently shows that emotions shape loyalty, trust, recommendation behaviour, and willingness to pay more. The key takeaway: your product gets you in the game. Your customer experience is what keeps you there.
CX is a culture not a campaign
CX isn’t a one-off initiative or job title - it’s a way of working. And it starts at the top. The starting point is to define what you would like customers to feel when they do business with you.
Many founders of small businesses initially worked directly with customers and know them well. They instinctively deliver the product or service, intending to do it differently. And that ‘differently’ is the CX essence. It is the secret differentiator and should be used to guide decision-making.
Leaders need to model how to deal with customers, invest in service skills (especially the hard skills such as empathy, dealing with challenging conversations or complaints), and respond to issues with urgency underpinned by emotional intelligence - when they do, when it’s clear that CX is everyone’s business, it becomes entrenched as culture.
Jeané van Greunen, Helm 3 days
Training your people matters. Ensure that the training content covers not just what to do, but how to deliver service - how to apologise with empathy, how to read customer cues, how to make a situation right, and how to make it easy for someone to say “yes” to you again. Teach your staff HOW to develop a YES culture and ensure that training is continuous and everyone participates. Whether they directly interact with customers or not, every person in your business affects the experience. Delivery, finance, inventory, operations, HR - these all contribute to the ease, accuracy, and emotional tone of customer interactions.
Finally, make sure that your employees have access to the right tools to perform their duties and empower them to do the right thing for customers. Even luxury giants like Ritz-Carlton allow employees to spend up to $2,000 to resolve a guest issue without needing manager approval.
While your budget may differ, the mindset shouldn’t: train, empower and trust your people to do the right thing for your customers.
Voice of the customer: It’s not corporate ‘speak’
Voice of the Customer (VoC) is often dismissed as “corporate talk.” But SMBs can and must own it - precisely because they’re closer to their customers and more agile in execution. You don’t need fancy dashboards or expensive tools. What you do need is openness, responsiveness, and consistency. That starts with listening.
Customer feedback is a gift for alignment, improvement and growth - even when it stings. Every complaint, comment or compliment is an opportunity to ensure that your systems, your staff, your processes or your product meet their expectations or identify where the gaps are. And don’t stop at your customers. Ask your staff - the ones at the till, on the phone, in the van, on the floor. They hear things management never does. It’s frontline insight, and it’s often gold.
Complaints are emotionally charged moments, but they are also powerful turning points. Most customers aren’t looking for a refund. They want to be heard, respected, and helped. Train your team to stay calm under pressure, de-escalate with empathy, fix what’s fixable on the spot and know when and how to escalate. When people feel understood and cared for, even when things go wrong, they’re more likely to forgive, and more likely to return and stay loyal.
And remember: action changes perception. When customers see you take feedback seriously and respond meaningfully, trust grows. Silence or inaction, on the other hand, is a loyalty killer. VoC is not about sending surveys. It’s about what you do with the feedback. Make VoC visible in your business. Identify who will be accountable and responsible for the VoC internally. Share feedback in team meetings. Track trends. Design fixes. Celebrate wins. Most importantly, close the loop. When customers raise issues, ensure they are contacted and action is taken. Become known for taking customers seriously.
Retention is the new growth
Too many SMBs chase new customers while quietly losing their existing ones. Retention isn’t just cheaper - it’s smarter. Track your customer churn and analyse exit patterns. Understand dissatisfaction before it becomes defection. Your existing customers already know you - they’re your best bet for sustainable growth. Don’t forget to involve your staff in understanding customer churn and how to reduce it.
In 2025 and beyond, the businesses that thrive will be those that understand one truth: customer experience is the opportunity to remain sustainable. Product alone won’t cut it. Discounts won’t build loyalty. But a consistently great experience? That’s what customers remember, talk about, and come back for.
If you’re an SMB serious about sustainable growth, invest in CX. It will earn you more than any promotion ever could.
