Not knowing or understanding your customers' experience (CX) is the silent killer of small and medium businesses (SMBs). Far too many SMBs believe that customer feedback programmes 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 and minimise 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 with choices, and loyalty is only skin-deep. Affordability is not the only driver. How you make people feel matters as much as what you offer, and this is at the core of the experience economy. 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 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% of customers are willing to switch brands if they believe another offers a better experience, and
  • 75% of customers 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. Your product gets you in the game, and your customers' experience is what keeps you there.

CX is a Culture, Not a Campaign

CX isn't an initiative or job title — it's a way of working, and it starts at the top. The starting point is to define how you would like customers to feel when they do business with you.

Many founders of small businesses initially worked directly with customers and therefore know them well. They instinctively deliver the product or service, intending to do it differently — and the difference is the CX essence. It is the secret differentiator, and it should be used to guide decision-making.

Leaders need to model how to deal with customers, invest in service skills (especially skills such as empathy, dealing with challenging conversations or complaints), and respond to issues with urgency underpinned by emotional intelligence. When it's clear that CX is everyone's business, it becomes entrenched as culture.

Training your team matters. Ensure that the training content covers not only what to do, but also how to deliver service. Examples include how to apologise with empathy, how to read customer cues, how to rectify a situation and how to make it easy for a customer to make use of your services again.

Teach your staff how to develop a "yes-culture" and ensure that training is continuous and that everyone participates. Whether your team directly interacts with customers or not, every person in your business affects the experience. Aspects such as delivery, finance, inventory, operations, HR — these all contribute to the ease, accuracy and emotional tone of customer interactions.

Finally, make sure that your team has access to the right tools to perform their duties, and empower them to do the right thing for your customers. Even luxury giants like Ritz-Carlton allow employees to spend up to USD$2 000 to resolve a customer issue, without needing manager approval.

While your budget may differ, your mindset shouldn't. Train, empower and trust your team 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". SMBs can master it because they're closer to their customers and more agile in execution. You don't need expensive dashboards or tools. What you do need is openness, responsiveness and consistency — it starts with listening.

Customer feedback is the gift of alignment, improvement and growth. Every complaint, comment or compliment is an opportunity to ensure that your systems, team, processes and your product meet their expectations or identify where the flaws are. However, don't stop at your customers, ask your staff — frontline insight is often gold.

Complaints are emotionally charged moments, but they are also powerful turning points. Most customers aren't only looking for a refund. They want to be heard, respected and helped. Train your team to stay calm under pressure, de-escalate with empathy, and fix what is fixable. When people feel understood and cared for, they're more likely to forgive and more likely to return and stay loyal.

Always remember that action changes perception. When it becomes apparent that you take feedback seriously and respond meaningfully, trust grows. Silence, or inaction, on the other hand, takes away from loyalty. VoC is not about sending surveys, it's about what you do with the feedback. Make VoC visible in your business and identify who will be accountable and responsible for the VoC internally. Share feedback in team meetings, track trends, design fixes, celebrate wins and, most importantly, close the loop. When customers raise issues, ensure that they are contacted and that action is taken to rectify the problem. Make sure that you become known for taking customers seriously.  

Retention Is the New Growth

SMBs have the tendency to chase new customers while quietly losing their existing ones. Retention isn't just more cost-effective, it's smarter. Track your customer churn and analyse exit patterns. Understand dissatisfaction before it becomes defection. Your existing customers are already familiar with you — they are your path to 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. Your product alone won't be sufficient, and discounts won't build loyalty. A consistently great experience is what customers remember, talk about and come back for.

If you're an SMB that takes sustainable growth seriously, invest in CX. It will earn you more than any promotion ever could.

For more information, visit www.consumerlab.co.za. You can also follow Consumer Lab on Facebook, LinkedIn, or on X. 

*Image courtesy of contributor