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As a marketer, I’ve had to use products that cut across CRM, instant messaging, scheduling, project management, and many others.

These software products caught my attention through various forms of marketing. But marketing is insufficient to keep anyone as a customer, no matter how brilliant it is. The core element that makes me continue using software is my product experience (PX).

In this article, I will explore what product experience means, why it matters, and the key elements that help brands make their products stand out.

In this article:

• What is product experience?
• Product Experience vs. User Experience
• The Importance of Product Experience
• The 4 Key Elements of Product Experience
• Designing Product Experiences That Count

A great product experience is prioritized by companies focused on customer-centric marketing, where customer feedback is at the forefront of product updates.

There’s no perfect formula for a successful product experience. As David Pereira, CEO of Omoqo GmbH, explains, brands only need to focus on three key stages:

• Product strategy (deciding the direction)
• Discovery (building the product)
• Delivery (releasing it and gathering feedback)

Product Experience vs. User Experience

While product experience covers the entire customer journey within a product, user experience (UX) is much wider.

According to Don Norman, the co-founder of Nielsen Norman Group and one of the first persons who coined the term user experience, “User experience encompasses all aspects of the end-user’s interaction with the company, its services, and its products.”

While there can seem like a lot of overlap here, I like to differentiate the two by reminding myself that PX is the customer journey within a specific product, while UX looks at the user’s broader interactions.

Product Experience vs. Customer Experience

Product experience and customer experience (CX) also differ.

I consider customer experience a broader term that describes every touchpoint a customer has with the brand beyond the product itself. As I mentioned, product experience covers the entire customer journey within a product. However, customer experience covers the whole picture — including product, marketing, customer service, and branding.

A great customer experience will quickly increase word of mouth for your product. For instance, a simple word from a fellow marketer I trust is sufficient to make me buy a product. That is what a great CX looks like. But what keeps me as a retained customer is a great PX.

For example, below is a Slack conversation I had with some colleagues — you can see how CX pulled me in, but the PX is what will keep me using the product (or have me abandon it).

Source

Improves Product Value and Revenue

An excellent product experience increases how quickly (time-to-value) new users see value in your product. The more effective your product experience is, the faster this happens, but this timeframe varies by industry.

In a recent product metrics survey of 547 SaaS companies across seven industries, the average time to value was 1 day 12 hours. I don’t think this time is bad, but what’s not good is what companies lose by resting on their oars. According to the same survey, a 25% increase in time-to-value brings a 34% increase in monthly recurring revenue in a year.

Pro tip: I recommend a simple onboarding process to help customers get more value through their product experience. By cutting unnecessary steps and using pre-built templates, in-app guides, or user manuals, new users can get on with what they want and derive value. Software products can also highlight key features with hotspots, banners, or tooltips to guide users effectively.

Raises Customer Retention

Customer retention is famous for being cheaper than customer acquisition in the product space. However, in an interesting article by Emanuele Porfiri, the senior data analyst at FT Strategies, only 24% of subscribers typically renew after the first month. While this raises a question about the worth of monthly subscribers, I prefer to focus on the solution, with one being to improve the product experience.

With a strong product experience, I believe businesses can increase this percentage to create consistent growth and a reliable revenue stream.

What this looks like in practice: When grammar checkers like ProWritingAid and Grammarly send me my weekly achievements with their products, it drives me to use the product the next week. Such a simple action creates a great impression and makes me continue as a customer.

Onboarding is another element that sets the tone for a user’s journey. If it’s seamless and engaging, it can build trust immediately. But beyond onboarding, your product must address real customer pain points.

One of the recent cautionary tales is that of Tupperware. They shifted their focus to branding and image, ignoring customers’ need for affordable, high-quality products. This misstep led to bankruptcy, showing what happens when a brand loses touch with its audience.

Increases Referrals

I’ve lost count of how many times I’ve recommended a product I love. If I enjoy it and it works, I share it on my blog, in Slack groups when members ask, or on LinkedIn. (You saw it in practice in the Slack conversation I shared above!)

Turns out, I’m not alone. Studies show that 94% of customers are happy to recommend brands with great products and excellent service. In my experience, the product matters most. If it’s exceptional, customers rarely need much support. A great product experience is the real test of your customers’ satisfaction and loyalty. It speaks louder than any marketing campaign ever could.

A perfect example of referrals in action is the story of DANG, an international skincare brand. When I talked to the founder, Ifedayo Agoro, she said referrals have become their growth engine because their product works.

“We’re a very tightly knit community of women, so it makes sense that when someone discovers that Dang skincare works for them, they tell their friends, family, and coworkers. Sure, we run other marketing campaigns, but honestly, most of our new customers and Instagram followers come from good old-fashioned recommendations,” says Agoro.

Increases Trial-to-Paid Conversion Rate

Before SaaS products, companies gave out free samples of physical goods so potential customers could try them out. Whether someone became a paying customer depended entirely on the product experience and quality.

The same principle applies to software: a great product experience turns free users into paying customers.

Beyond making the product easy to use, there are several ways I’ve seen different software companies attempt to convert me as a user:

• Using welcome surveys to collect my information and personalize my experience.
• Including in-app product demos that show paid features.
• Providing virtual and interactive walkthroughs within the product.
• Presenting upgrade prompts to higher product tiers.

The 4 Key Elements of Product Experience

Feedback, analytics, prioritization, and clarity are the four key elements that can help you create a great product experience. Let’s dive into each:

1. Feedback

In the 2024 State of Product Management report, 99% of product managers say customer feedback is vital and responsible for the biggest increase in product effectiveness. This feedback can come in structured (surveys, interviews) or unstructured (customer service conversations, sales interactions, community conversations) formats.

Agendor, which provides web and mobile solutions for sales professionals, is one brand that can testify to the impact of structured surveys.

When the CTO, Tulio Monte Azul noticed their mobile app wasn’t as popular as the web version, he did a survey and found the complex onboarding process as the culprit. In response, his team shortened and gamified the onboarding process, resulting in a surge in mobile users and improved product value.

For new products, community conversations are one of the easiest ways I have seen early-stage founders get product feedback. This feedback could come from sites like Product Hunt, where founders generate buzz, or Appsumo, where they generate paid users and gather tons of useful feedback.

Pro tip: When using feedback, I’d recommend you tread carefully and handle it well. Don’t over-rely on input from just a few power users. This can skew your product updates and alienate the desires of most users. And don’t ignore negative feedback, too. While they are easy to dismiss as outliers, negative comments can highlight issues you must address to improve the overall product experience.

User research and feedback shouldn’t be a one-off task. Make it a continuous part of your product development process. Regularly check in with users to ensure your product evolves with their changing needs and expectations.

2. Analytics

In the past, companies relied on anecdotal observations, gut instincts, and the opinions of the loudest stakeholders to determine product improvements. Today, companies use data analytics tools and AI forecasting to analyze data and gain insights to create a great product experience.

However, without these sophisticated tools, you can manually sift through data and feedback with different departments. While this is time-consuming, it offers a more human perspective on how each team member might solve user issues.

A common issue that delays product teams from moving beyond the analytics or discovery stage is the belief that they need more data or user feedback to gain accurate insights. In an episode of The Product Experience Podcast, Frances Ibe emphasized that no set amount of data is required to provide useful insights. She describes searching for user insights as “a goal that is progressively moving forward, which shouldn’t stall the product team.”

In his newsletter, The Product Pulse, Sandeep Singh Rajput also highlighted a key analytics pitfall: confirmation bias. This is when you search for data and insights that confirm pre-existing beliefs about the product, causing you to ignore valuable insights that challenge your assumptions.

To avoid this, Sandeep advises approaching user research with an open mind and asking questions that challenge your beliefs, allowing you to uncover the real needs of your users.

3. Prioritization

All product development requires prioritization to decide what to build and when. In terms of product experience, prioritization should be driven by analytics and user feedback and not by what the company wants to achieve, which may only sometimes align with user needs.

The impact of doing the latter has resulted in 80% of SaaS features going unused.

The cost? An estimated $30 billion in wasted research and development — a clear sign of a sub-optimal product experience.

One way to prioritize product tasks is by assessing the risks involved in delaying or advancing each task. These risks can be measured against user experience impact, technical feasibility, and alignment with business goals.

Another approach is to have open-ended conversations with customers to gain deeper insights into pain points. This method comes after gathering and analyzing initial feedback, providing the product team with a comprehensive understanding of customer needs.

Unfortunately, stakeholder influence often plays a significant role in prioritizing product tasks. According to the 2024 State of Product Management Report from Product Plan, 31% of prioritization decisions are influenced by stakeholders.

In The Product Experience Podcast, David Pereira advised product teams to avoid falling into this trap. He suggested that teams highlight the potential consequences of prioritizing stakeholder-driven tasks versus team-driven tasks and assess how each option impacts the bottom line.

Pro tip: To prioritize correctly, I recommend that product teams concentrate on their north star metric (NSM), the single outcome that delivers the most value to users. By focusing on the NSM, the team can identify tasks that need immediate attention while pushing less critical tasks forward.

4. Clarity

Imagine creating a product experience without understanding the users’ needs or the intended outcome. This process is bound to fail, as conflicting priorities and disorganized efforts often lead to poor results.

When Arne Kittler appeared in The Product Experience Podcast, he highlighted time pressure, misconceptions, and personal discomfort as barriers to product clarity.

I agree with him because product managers, in a rush to meet deadlines, might skip essential steps to gain clarity. Product managers can also sometimes avoid pushing for clarity to maintain relationships with colleagues, which leads to poor product outcomes.

While clarity is critical, product teams shouldn’t mistake it for certainty. Clarity means understanding the direction and purpose of the product experience process. Certainty assumes that every decision or outcome is guaranteed and unchangeable. Clarity is fixed, while certainty can shift according to the product strategy.

To gain clarity, the product team must foster a collaborative environment at the start of designing the product experience process.

While this is a mix of strategic and tactical planning, the key is to invest time upfront to get all stakeholders on the same page. Everyone needs to get involved through interactive exercises, such as discussing expected outcomes. This provides the clarity necessary for execution.

Designing Product Experiences That Count

When it comes to the direction of your product, everyone has an opinion. Sales might want one feature, customer success another, and the tech team could prefer a more complicated solution — each offering solid reasons for their choices.

However, having the right feedback and insights can outweigh the validity of their opinions, allowing you to focus on product tasks that your customers will love. Demonstrating the impact of your product experience on the company’s success shouldn’t be hard.

As a user of different products, I’d recommend you focus on an agreed-upon North Star metric — this will make it easy to demonstrate the effects of product investments.

Remember, you don’t need every tool or resource to start creating good product experiences. Without customer feedback, you can use hypotheses, test them, and identify high-risk assumptions. If you lack a clear prioritization of tasks, use lightweight data prototypes to test options on a small user group to gauge their response and adjust accordingly.

Editor’s note: This post was originally published in January 2024 and has been updated for comprehensiveness.

Does anyone else value experiences more than, well, stuff? The older I get, the more it’s clear that I would rather spend money making memories than spend my money on something I’ll have to store somewhere.

Plus, every now and then, the spirit of Marie Kondo descends. If an item isn’t nailed down to the floor, it’s in danger of the donation pile.

More and more consumers think like I do. In fact, a recent study conducted by Barclays found that nearly 60% of consumers would rather spend money on memories than material items. This shift in thinking (and spending!) has led to a boom in the experience economy.

To understand this shift, I spoke with Kayla Smith, the director of public relations and travel advisor for Sojourney Travel. Today, I’m sharing what I learned and giving you tips on how to make the most of the experience economy.

Table of Contents

• How to Make the Most of the Experience Economy
• What is the experience economy?
• Why the Experience Economy Matters
• Examples of the Experience Economy

What is the experience economy?

The experience economy focuses on selling memorable experiences rather than goods and services.

I asked Smith to give me her definition of the experience economy. She told me, “I would define it as sort of this cultural shift of people seeking out experiences over material things. I hate to bring COVID up, but that was a time when there was this sort of broad-spectrum cultural shift.”

Smith mentioned that the COVID pandemic helped people realize that some experiences are here only for a moment. And once the moment has passed, it’s gone forever. Smith said, “It’s the concept of ‘you don’t really know what you have until it’s gone.’ And so you had this generational shift of people saying, ‘Okay. When we get past this, I want to build memories. I want to live life to the fullest.’”

She continued, “I think it just created this atmosphere of people seeking out experiences more and more to the point where there is this huge economic shift where people are taking more trips.”

A travel business is the most notable example of a company that operates well in this economy. However, other kinds of businesses do well in this economy, too. We’ll look at some great examples later on. But first, let’s dig deeper into why the experience economy matters.

Why the Experience Economy Matters

Given the term, it’s easy to understand that a customer’s experience is the top priority for brands that rely on the experience economy. However, even if your brand doesn’t provide an experience, like a once-in-a-lifetime trip or a class to learn craft skills, core principles of the experience economy matter, and you can apply those same concepts to the service you provide your customers.

So, what are the core concepts of the experience economy? Good question. Let’s look at them.

1. Experiences help build relationships.

Building a relationship with your clients helps improve the customer experience, even before they spend any money with your brand.

When your brand goes above and beyond to provide a memorable customer experience, you have a higher chance of gaining a loyal customer. It’s why 31% of customer success leaders look for ways to maximize customer retention strategies.

Smith said when people ask about her job, she doesn’t tell them she’s in the travel business. Instead, she says, “I’m in the relationship business. On the business side of things, it’s the opportunity to expand the relationship, to keep it going, and to have a personal connection with each of your clients.”

Smith told me that looking for ways to improve and maintain the customer relationship is the core of the experience economy. She said, “I think it’s a great opportunity to build relationships with your consumer. It is a continuous relationship.”

For Smith, that continuous relationship makes a difference for Sojourney Travel. She said, “Consumers have the comfort of knowing that there’s a continuous person that they can reach out to and that they built that relationship as well. So on the consumer side, they don’t have to search for someone new every time they want to plan a trip.”

2. It’s easy to personalize based on customers’ needs.

Creating those lasting relationships leads to another reason the experience economy matters: personalization.

And customers notice — 62% of consumers say that personalized recommendations are better than general ones. Personalized recommendations tell your customers that you are listening to and hearing their needs. If you can personalize your offerings based on your customers’ wants and needs, you’re working to elevate the customer experience and deepen your relationships.

Smith made a good point about personalization when it comes to strengthening connections. She told me that when you build personalized relationships, customers keep returning to you. She said, “They come back to you, and they’re like, ‘Hey, I worked with you last time. I know you have these notes about me.’”

In fact, 59% of customers think businesses should use the data they collect on consumers to personalize their experiences. Moreover, 68% of customers would rather work with a brand that keeps notes than spend time repeating themselves to customer service reps.

When customers explicitly tell you what they want, pay attention. Reviewing your notes and records is an easy way to modify your services to meet your customers’ needs better.

3. Focusing on the customer experience can increase your revenue.

Remember how Smith and I mentioned that personalized relationships mean repeat customers? Brands that emphasize improving the customer experience and getting to know their clients better will have more opportunities to increase their revenue.

Amazingly, 86% of consumers are willing to pay more for a great customer experience, which can lead to increased cross-sells and upsell opportunities. In fact, 42% of businesses focus solely on the customer experience to increase the chances of these sales opportunities.

From a customer perspective, I can say this rings true. When my husband and I went on our honeymoon earlier this year, we stayed in a great little Airbnb. The hosts were super responsive and made our stay memorable. A few months later, when booking another stay, I specifically looked for rentals through our previous hosts. I knew their clean cabins provided the extra amenities my husband and I wanted.

Going the extra mile for your customers can help create more revenue opportunities, even if they’re a few months away.

Use HubSpot’s free customer journey map template.

Examples of the Experience Economy

Let’s look at some examples of brands that make the experience economy work for them.

1. Sojourney Travel

Sojourney Travel, the company Smith works for, is an excellent example of the experience economy. Sojourney Travel helps its clients book memorable travel experiences without the headache that booking and planning usually bring.

For Smith, the travel experience is more than just creating memories in new, exotic places. Instead, it’s often about the togetherness created between families during their travels. Smith said her clients are simply seeking out opportunities to be together. She said, “People are just seeking this human interaction more and more than before.”

I asked Smith why customers choose Sojourney Travel as their travel agency. She told me they focus on solving travel issues before the customer is even aware of the problem. This helps reduce the friction and frustration travelers experience, leading to a better vacation and more positive experiences.

And it leads to happy, repeat customers.

2. DIYBooks

Source

When I think of the experience economy, I automatically think of travel brands. However, DIYBooks is an excellent example of an experience economy that goes beyond traveling.

DIYBooks connects individuals with ghostwriters to help tell their personal stories. According to Barbara Basbanes Richter, founder of DIYBooks, they “help people write their life stories through a guided journey of memory, reflection, and storytelling.”

I asked Richter why DIYBooks works. She told me, “Writing is both thinking and feeling — it’s how we make sense of our experiences. At DIYBook, we guide writers through this process, helping them uncover memories and connect stories in ways they hadn’t expected. When writers share their completed books with families and friends, they often spark conversations that might never have happened otherwise.

“Stories that seemed ordinary become touchstones for deeper family connections. This transformation from ‘writing a book’ into ‘discovering and sharing your life story’ makes DIYBook part of the experience economy. We’re not selling a writing platform; we’re helping people preserve their stories in ways that matter.”

Like Smith and Sojourney Travel, DIYBooks is in the business of building relationships — both with its customers and between its customers’ families.

3. Declare to Dare

Debbi Sluys, a vision board expert and founder of Declare to Dare, helps her clients create the life of their dreams. Her vision board classes allow participants to develop connections to their deepest wants and desires. Sluys’s approach to her classes intentionally creates a welcoming and inclusive space to dream. Plus, she provides participants with the tools to make their dreams a reality.

Sluys’s business is a unique experience, and her local tourism board took notice. Sluys told me, “I’m in Ontario, Canada. Our municipality approached me as an experience for their tourism offers. So on the website, it has me, and then it has me connected with one of our local boutique hotels as well as a local brewery.”

She said, “And then it becomes a whole experience for a girls’ weekend because people are looking to do, to create an experience, to create that memory. And so what they receive with me is definitely the experience at the moment, but then it carries on afterward because they actually have something tangible they’re going to take home, and I’ve taught them how to use it.”

4. Flygreen

In my opinion, Flygreen is another great example of the economy of experience, especially for travelers who want to travel conveniently and in style.

Flygreen offers flyers a personalized chartered jet experience. Travelers can be in the air in as little as four hours, enjoying their preferred amenities made possible by the help of Flygreen’s aviation directors.

When I asked Pascal Couture-Trembaly, vice president of operations at Flygreen, why the customer experience is central to the brand, he told me it’s more than customer satisfaction. It’s efficiency, too.

Couture-Trembaly said, “At Flygreen, customer experience means delivering more than just a flight — it’s about offering unmatched efficiency and thoughtful expertise. For us, this translates to ensuring that a customer can make an inquiry and be ready to take off within four hours. In private aviation, time is a luxury our customers value far more than a glass of champagne or a leather seat.”

He said, “Exceptional service involves understanding the purpose of every trip and seamlessly matching it with the ideal aircraft. A fishing expedition requires something entirely different from an in-flight business meeting, and our job is to make those decisions effortless for our clients.”

It’s important to remember that customer experience transcends far beyond brands that fit neatly into the experience economy. What I mean by that is even if your brand doesn’t sell a direct experience, like a hotel stay, a guided tour, or a private class, you can still benefit from the concepts that make the experience economy great.

Here’s how.

1. Listen to your customers.

Smith told me the biggest way to make the experience economy work for your brand is to “focus on the relationships. Listen to the people.”

She said, “All in all, you’re not selling a product. You’re selling yourself and your services. You’re selling an experience to the client. You’re selling memories and the opportunity of togetherness.”

When you approach customer experience from a blind perspective, providing the experience your customers want and need can be challenging. This is why open conversation and dialogue is critical.

2. Dig deep into your customer’s “why.”

As you create opportunities to listen to your customers, take some time to understand why they are spending money with your brand.

Smith told me that it’s vital to understand why a customer is seeking out your services. Digging into their “why” is how you can provide the best, most personalized experience.

If you’re unsure of their reasonings, ask the deep questions. Smith said it’s as easy as asking them why they’re seeking out your services. Send a customer survey or contact your clients just to catch up and ask if you can do anything to support them. You might be surprised at how easy it is to tailor the experience when you clearly understand their needs.

3. Promote the human connection.

If I learned anything through my master’s of education program, it’s that connections are a basic human desire. I appreciate brands that focus on human-to-human interaction, and I think it’s one of the top takeaways of why the experience economy works so well.

According to Smith, it’s what people want to experience with a brand. She told me, “You know, I think people seek experiences because of the overall human connection that they desire.”

She said, “I think that they are going to want more of that because it is a basic human desire to connect with others and other like-minded people. When you feed into that when you talk to people, get an idea of what they’re looking for, and really form these relationships, you’re going to have a successful business model.”

Focus on the Experience

As I learned by chatting with Smith, consumers seek opportunities for experiences and memories.

No matter your brand, whether you sell an experience like DIYBooks or goods and services, listening to your clients will help you create a better customer experience. A positive customer experience will keep your clients coming back for more, helping to increase your revenue and bottom line.

When I research companies online, I don’t just want to hear the company’s pitch; I want to hear from its customers. That’s where customer testimonials come into play. But what makes some testimonials so much better than others?

In this post, I’m sharing 25 testimonial examples showing how customers can build hype for your business. I’ll also share insights from marketers and business owners to teach you how to source, write, and distribute testimonials effectively.

Table of Contents

• What is a testimonial?
• How to Write a Testimonial
• 10 Testimonial Examples
• How 13 Companies Leverage Testimonials
• Why are testimonials so effective?
• How to Ask for a Testimonial
• 10 Different Types of Testimonials
• Testimonial Design Best Practices
• Where and How to Share Testimonials
• Testimonial Page Examples: What elements make a good testimonial page?

Effective testimonials go beyond a simple quote that proclaims your greatness. They need to resonate with your target audience and the people who could also potentially benefit from the work you do in the future.

The best testimonials tell a story with friction and resolution. At the end of the day, your customer is the hero, but your brand helps them reach their goals.

Why are testimonials so effective?

Testimonials are a powerful tool used across multiple customer touchpoints, from marketing materials to sales conversations. Here’s why they are so effective:

Social Proof

When people are uncertain, they often seek validation from those who have already taken the leap. Testimonials as social proof allow potential customers to rely on others’ experiences to guide their decisions.

As Marissa Taffer, founder and president of M. Taffer Consulting, explained, “Testimonials are critical to my business. As a consultant, the field can be crowded, and having past (or current) clients paint a picture of what it‘s like to work with me can help me win a new piece of business better than if I try to explain what it’s like myself.”

Storytelling

Testimonials add a storytelling element to your marketing. They transform customer experiences into relatable narratives that potential clients can connect with.

When I spoke to Nadine Heir, an organic marketer at Tukki, she shared that in her work with B2B companies and tech SaaS companies, they “rely heavily on testimonials to add a story element to their marketing.”

By connecting with prospects through relatable stories, businesses humanize their brand and establish a deeper connection.

Demonstrating Impact

Testimonials do more than tell a story; they demonstrate real impact.

Heir highlighted this when she told me, “Without testimonials, it’s hard to demonstrate how technology or services move the needle for customers.”

Rather than simply telling potential customers about your offerings, testimonials highlight the tangible results your service or product has delivered.

Building Trust

Testimonials are essential for trust-building as they show potential clients that others have had positive experiences using your product or services. For service providers, in particular, this is often invaluable.

Nathan Ojaokomo, a freelance content writer, emphasizes this point: “Using testimonials makes it easier for potential clients to trust me.”

How to Ask for a Testimonial

I’ve learned that there’s no one-size-fits-all system for collecting testimonials. Businesses approach this differently depending on their type of business, product, customer/client base, and available resources. The key is tailoring your approach to your specific needs and goals.

Here are some of the most common strategies businesses use to gather valuable testimonials.

1. Make a direct ask.

Sometimes, the simplest and most effective way to collect testimonials is by directly asking your customers for them.

This is especially true for service providers or businesses that can’t allocate resources for more complex systems or lengthy interview processes.

But how do you ask for these testimonials?

Asking for a testimonial might seem awkward, but with practice and systemization, it becomes easier.

A great place to start is by sending a personalized email. As Ojaokomo explains, “I just ask them in an email. Something like, ‘We’ve been working together for a while now. Do you mind saying a few things about our work together? You can mention any from my communication, the quality of my work, and the results I’ve generated for your business.’”

The key is to make the request feel natural while clearly outlining what you need from them.

2. Conduct customer interviews to uncover insights.

Interviews often reveal in-depth stories about how your product or service has addressed specific challenges and delivered value.

Eric Doty, content lead at Dock, shared with me that, “Most of our testimonials come from full customer case studies based on 30-minute customer interviews.”

Similarly, Stella Inabo, a content marketer at Float, also shared with me how their customer interview process led to in-depth customer testimonials: “In our case, we conducted 30-minute interviews with everyone we spoke to. I started with the usual questions: ‘What’s your job? What are the hard parts of your job? How does our tool solve your pain points? What do you like or dislike about it?’ If someone mentioned something interesting, I let them elaborate or asked a follow-up question. As a result, I ended up with very comprehensive insights.”

3. Document and analyze customer interactions.

Some of the best testimonials happen organically during customer interactions. However, many businesses miss the opportunity to collect these valuable testimonials because these interactions aren’t properly documented.

“Many companies miss out on excellent, organically shared feedback because their product, sales, or CX teams don’t know what to look for, or they aren’t documenting every customer call,’ Heir explained to me.

At Tukki, she takes this a step further: “We record everything, which allows us to follow up with customers later via email, saying, ‘In our call, you mentioned XYZ. Do you mind if we share that with our audience in marketing materials?’”

4. Systemize testimonial collection.

While the methods mentioned above are effective, setting up an automated system to collect feedback regularly can make the process even more efficient. This can take various forms like:

• Prompt customers to leave a review after each purchase. You can do this on your website or a site like Yelp or Google My Business.
• Add a review system with star ratings to your online store.
• Prompt customers to complete a customer satisfaction survey. HubSpot customers can do this easily through the Service Hub survey tools.

Customer Satisfaction Survey: Proven Tips for HONEST Answers

Tips for Collecting High-Quality Testimonials

How you collect testimonials can make or break the process, determining whether you can gather feedback at all and the quality of the testimonials you receive.

Here are some real-world tips and best practices to help ensure you get meaningful, high-quality feedback.

1. Know your target audience.

Before collecting any testimonials, clearly defining your target audience is essential. This information will be crucial in determining which segment of your customer base to include in your customer outreach.

As Ojaokomo shared, it’s crucial to “ensure the profile of the people leaving testimonials matches the profile of clients or customers you want to attract.”

If the people providing testimonials don‘t match the profile of the audience you’re trying to reach, even the most glowing testimonials are unlikely to resonate.

Once you’ve identified your target audience, the next step is to pinpoint the specific concerns or objections your testimonials should address.

Doty explained, “We have relevant testimonials based on the use case the customer is looking at. For example, we have testimonials that focus on onboarding to use with clients who are specifically looking at using Dock for onboarding.”

2. Ask at the right moment.

The timing of your request can significantly impact the willingness of a customer to leave a testimonial.

When a customer shares positive feedback, seize the opportunity to ask for a testimonial while their enthusiasm is fresh. As Doty pointed out, “Whenever we get glowingly positive feedback in an email or an Intercom support chat, we‘ll ask if that customer is willing to leave a review for us. They almost always say yes if we ask them right after they’ve given that positive feedback.”

3. Provide a framework and/or examples.

Giving your customers some direction can improve the quality of their testimonials by helping them provide more focused responses.

Doty explained to me how this approach works at Dock. “To get better answers out of them, I send them a customer story guide,” he explained. “I also send them sample questions, but not the exact questions I’m going to ask to make sure their answers are off-the-cuff, authentic, and unscripted.”

4. Use software to support the process.

Using software tools can streamline your process and make it easier to capture valuable insights.

Doty mentions Riverside and Descript as his go-to tools, while Inabo is a big fan of Maven. She shares, “Maven is great because it helps take specific notes, transcribes accurately, and uses AI to surface highly targeted insights.”

5. Share your final draft with the customer before publishing.

While it may seem like permission is implied once a testimonial is given, securing explicit consent before making it public on your business assets is essential.

Heir emphasized this, saying, “We send a contract to get explicit permission to share their words or videos. We also ensure they approve the specific wording before posting anything publicly.”

Inabo also noted, “We typically don’t have things like this happen at Float, but there was an instance where one software company said their legal team had to look through what we had written.”

Taking this proactive step helps prevent any potential issues down the road. It ensures the customer can review the testimonial, get approval from relevant stakeholders, and request any necessary amendments before it’s shared publicly.

Now that I’ve covered how to collect testimonials and customer feedback effectively, let’s discuss how to get the most out of this feedback.

In this section, I’ll share expert tips on how to turn that feedback into compelling testimonials.

1. Highlight Customer Pain Points

The most compelling testimonials are built around a story — and every story begins with a problem. “When presenting testimonials, businesses should highlight customer pain points and how their service provided a solution,” explains Safia Marmon, project lead at Sunbowl.

Highlighting the pain point in a testimonial is crucial because it allows your target audience to put themselves in the customer’s shoes and envision themselves overcoming the same challenge with the help of your product or service.

2. Keep the Customer’s Success Front and Center

One powerful lesson I learned while speaking to Inabo was Float’s approach to crafting compelling testimonials.

“We‘ve found that people want to feel like they’re good at their job, can spot a great tool, and implement a solution,” she explained. “It’s important that the customer’s success comes first, with our tool serving as the aid.”

A strong testimonial doesn’t just praise your product — it highlights the customer’s achievements. By spotlighting their success, you make the testimonial more relatable and inspiring.

3. Balance Emotion With Data

A compelling testimonial blends emotion and statistics to create a story that resonates and proves tangible value. “Emotions and statistics are the bread and butter of a standout testimonial,” Heir shared.

Doty also emphasized the importance of emotional appeal, noting that this can make testimonials feel more genuine and credible. “Having a bit of raw emotion, unfiltered honesty, or a specific anecdote in the testimonial versus having a perfectly polished quote makes them resonate more,” he explained.

But how do you strike the right balance between emotional appeal and data?

This balance emerged out of necessity for Inabo, but became a powerful strategy. She shared, “When I started conducting customer interviews at Float, I sent out questions beforehand, specifically asking them to come prepared with metrics.

However, many of them came with ‘feelings’ instead. Rather than sharing concrete data, I would hear things like, ‘It feels less chaotic. It feels like we’re more efficient. It feels like projects are faster.‘ So, what we ended up doing was blending those emotions with public data, which led to headlines like ’This company became more efficient in handling 200 staff.’”

4. Be Specific

Vague statements like “It was great!” don’t add much value to a testimonial. Instead, aim for specific feedback that highlights the benefits customers experience. Instead of using blanket or ambiguous statements like “made more money,” provide specific data and quantitative results, such as “grew our sales by X%,” to add credibility and detail to the testimonial.

Ojaokomo echoed this point, sharing, “The testimonial should be specific, so potential customers can see that the client didn’t just use a template or make a blanket statement. If possible, include real numbers.”

5. Keep It Short

People have short attention spans, which is evident from a recent Wistia study. The study found that the longer a video testimonial is, the lower its engagement: 45% of viewers stayed engaged with a video testimonial under one minute, but that number dropped to just 23% when the video exceeded five minutes.

If your testimonial is unnecessarily long, your readers will disengage and move on to reading something else. I recommend keeping written testimonials to two or three paragraphs or a video/audio testimonial under three minutes.

6. Attribute the Testimonial

Get permission to attribute a quote with the customer or company name whenever possible. An attributed testimonial is much more powerful than an anonymous one. If you can’t attribute a quote, use as much detail as you can, such as the person’s first name, location, and age or type of company.

To personalize a testimonial, add before and after images, a speaker photo or company logo, and other images that help readers connect emotionally.

10 Different Types of Testimonials

Testimonials can be collected and shared in different formats and platforms/mediums. In this section, I’ll cover ten testimonials and briefly discuss how they can be leveraged in your sales and marketing strategies.

1. Quote Testimonials

Quote testimonials display positive statements about your company in a customer or brand evangelist’s own words. This review style can be significantly more effective than traditional advertising methods, as most consumers will trust a peer over a paid actor. Include an image of the person to make it even more effective.

If your company wants to attract customers of a different demographic, finding testimonials with the same profile as your new audience can help make the connection.

2. Video Testimonials

Video is one of the fastest-growing content mediums, with 46% of companies using video to create video testimonials, according to Wyzowl’s 2023 study.

This shift towards video is evident in the approach of companies like Sunbowl, where, as Marmon shared, “We’re now focusing on authentic video testimonials, shifting away from our previous approach of using written reviews.”

Seeing another person share their story is more compelling than words on a page. 87% of marketers report that video has helped them to increase leads and sales, meaning they carry a powerful punch.

Consider this two-minute video testimonial that HubSpot created with a happy customer, ClassPass.

52% Increase in Lead Conversion Rate | ClassPass x HubSpot’s Customer Success Story

3. Audio Testimonials

Audio is similar to video in how it can influence and motivate your audience. For example, you can use an audio testimonial in a podcast, radio ad, or LinkedIn content.

One great benefit of audio is that it‘s cost-effective. You don’t need an entire production crew and tons of expensive equipment. You only need a microphone, recording software, and a quiet room to record in. With those tools, you can tell an inspiring customer story by threading different customer quotes together in one track.

4. Case Study Testimonials

A case study is an in-depth analysis of a customer’s experience with your company. These pieces — compelling for B2B companies — use a more scientific approach to prove how your business played a role in the customer’s success.

For example, case studies often use facts and observations to demonstrate how certain products or services benefit actual customers of your business. You can also use data visualization and storytelling to illustrate your benefits.

5. Social Media Testimonials

When people have an emotional brand experience (good or bad), they want to tell someone about it. That’s where social media testimonials come into play.

When you see customers talking about your brand on social media, engage with them. Like and comment on their post for added exposure. Be sure to ask permission before sharing those experiences on your website or other content.

6. Customer Interviews Testimonials

Customer interviews are an excellent way for your business to ask customers about specific aspects of your business and how they played a role in their success.

This format lets you show off your different products and features and lets potential leads see their real-world application. You can repurpose a customer interview over multiple mediums: written, video, photos, and audio.

7. Authority Testimonials

Also known as “influencer testimonials,” authority testimonials are pieces of content that include a celebrity or spokesperson supporting your company.

Often, this person is a significant influencer of your target audience and helps build your business’s credibility.

The most effective spokespersons are the ones who share the core values of the business and deeply connect with the target audience. Influencer testimonials can be expensive, and finding the right influencer can be challenging. Still, when they succeed, these campaigns can pay dividends for your company over time.

8. Peer Review Testimonials

Peer review testimonials are feedback that customers post on review sites like Yelp, Angi (formerly Angie’s List), or Trustpilot. These reviews can influence customers as many consumers look at these review sites during decision-making, particularly when using a company for the first time.

Studies show that 54% of consumers will only consider buying from a business if they have four or more stars on a review site.

These reviews can be quickly captured, reformatted, and shared on your company’s website, bringing social proof to your site.

9. Blog Post Testimonials

A blog post can be an informative way of displaying customer testimonials. You can write about a customer’s story in-depth and break down subtle details within the customer’s journey.

Once completed, the post can be shared either on your blog or on another blog that’s popular in your industry.

10. Press Review Testimonials

For growing companies, getting your business featured in the news (for the right reasons) is a big accomplishment.

Just like the restaurant Five Guys decorates its walls with press accolades, consider how to highlight positive media reviews. Capture quotes, buy reprint rights, and share your brand’s media coverage on social media.

Are you feeling inspired yet? Good, but before you start crafting your customer testimonials, it’s important to understand some of the best design practices.

In the next section, I’ll cover key design fundamentals you’ll want to focus on when creating customer testimonials.

Testimonial Design Best Practices

While customer testimonials can appear in many formats, there are still some standard guidelines to follow, regardless of your chosen approach.

Including the following elements in your customer reviews will make your customer testimonial feel more genuine for your target audience.

1. Get inspired.

Testimonial pages should feel unique yet familiar. Often, the best way to learn is to be inspired by successful examples. Testimonial pages are no different.

That’s why I’ve compiled a guide filled with the 25 best testimonial pages from companies we’ve seen online. Download the guide to get inspiration for your testimonial page.

[ADD FWCTA HERE INSTEAD OF OLD CTA]

2. Make it visually engaging.

The best testimonials paint a picture with words so readers can understand your purchasing value. Be sure to feature testimonials with descriptive language that’s enthusiastic and detailed to help convince your prospects to make a purchase.

Take your testimonial page one step further by incorporating more visual elements like images, videos, and social media feeds.

These are relatively easy ways to make testimonial content more engaging and prove to readers that the testimonial comes from a real person.

3. Keep it aligned.

Highlight testimonials that align with specific features of your product or service. Then, connect the dots for readers by linking to different product or tool pages. This allows readers to learn more about what they’ve just read.

All the better if there are relevant images or demo videos you can share alongside these specifically aligned testimonials.

4. Use a website page builder.

A testimonial page should be well-designed and visually appealing to maximize its intended impact. You can use a free website builder with themes and templates to quickly make a testimonial page that stands out.

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What do these look like in action? Check out the testimonial examples below to find inspiration for your testimonial page.

1. Stio’s Brand Ambassadors

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Testimonial Type: Authority

Outdoor enthusiasts need to know that a product is durable and safe (sometimes in extreme conditions!) before they will purchase it. Stio’s approach adopts brand ambassadors who wear its products and advocate on the company’s behalf.

In its testimonial pages, Stio’s brand ambassadors answer interview questions about their interests and excursions for inspiration. The ambassadors mention Stio products and include a product carousel for their favorite gear at the bottom of each testimonial page.

A quote I love: “That the Outside is for Everyone! My passion is to support my community in getting outside.”

The testimonial introduces the reader to someone they can empathize with. This testimonial has a link to a blog post that further promotes the business.

2. Blue Apron’s Instagram How-To

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Testimonial Type: Social Media, Authority

Testimonials can be simple. In fact, this testimonial by Instagram influencer Cody Tries Stuff is excellent because it’s easily shared via social media or the company’s website. That way, the brand can engage with leads on their most comfortable channels.

It’s also incredibly effective and has a foodie audience. Plus, it shows you how to use the meal kit with a discount code. Consider this comment from one of Cody Tries Stuff’s followers: “This is without a doubt the greatest blue apron ad that’s ever been created. The only time I’ve considered giving it a try.”

Pro tip: For social media reviews, consider inviting an expert to showcase your products, and don’t hesitate to include more informal elements like cute animals. (Ultimately, of course, it depends on your industry.)

3. Villa’s Tacos LA Times Review

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Testimonial Type: Press Review

Sometimes, testimonials don’t have to come from customers. In this example, a Los Angeles-based restaurant was given an excellent review by a critic from the LA Times.

While these testimonials don‘t come every day, it’s important to seize these opportunities and put this content on blast for potential leads to see. It’s also incredibly effective for a party unrelated to your business to review your product publicly.

For example, if you own a restaurant, you can potentially send pitches to editors, and if you sell a tech product, consider pitching your solution to tech publications. These reviews generate buzz and offer a uniquely unbiased yet editorialized view of your offering.

A quote I love: “Among choices of meat, I savor the nubbly beef and chorizo but take particular pleasure in the rich, hashed chicken leg that absorbs the mesquite smoke most profoundly.”

Getting this specific testimonial from a reputable third party inspires readers to desire your offering.

4. Fabletics’ #MyFabletics Hashtag

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Testimonial Type: Social Media

Fabletics leverages social media to collect testimonials from its customers. For example, it encourages customers to post themselves on their Instagram pages wearing Fabletics products and tagging “#MyFabletics.”

This provides a surge of engagement for the brand’s social account and creates free advertisement through customer advocacy.

This is one of the most cost-effective methods for collecting unbiased customer testimonials. You can create a hashtag and easily start promoting it on Instagram or TikTok without paying a single dime.

What I love: Even if users don‘t write a lengthy caption singing praises to your product, a picture will more than say enough. The quality of the product and the user’s emotion in the photo will show that your product works.

5. Harry’s Trustpilot

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Testimonial Type: Peer Review

As you can see in the image above, Harry’s has done a great job of building up its credibility on consumer review sites like Trustpilot.

Trustpilot is a highly regarded review site. High ratings give personal care company Harry‘s a major vote of confidence. You’ll rarely find a negative review, though it’s worth noting that a few negative reviews can lend credibility by making the reviews seem authentic. A TrustPilot account also enables you to analyze the reviews, pinpoint trends, and identify areas of improvement.

A quote I love: “How to solve my issue with my razor’s lubrication strip disintegrating was explained promptly and politely. And a free pack of cartridges was sent to compensate. Excellent service.”

6. Ahrefs Customer Quotes

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Testimonial Type: Quote

While Ahrefs doesn’t have a lot of quote testimonials on its homepage, the quotes used are catchy, specific, direct, and inspiring. In addition, the customer quotes come personalized with photos.

I love the simple carousel format and how you can click through different industries for quotes. The testimonial featured above is from Maile Waite, head of content for Ahrefs client CloudApp.

A quote I love: “Using Ahrefs’ data to plan our content strategy helped us increase visits to our blog by over 200% compared to the previous year.”

7. FASTSIGNS Customer Testimonial Video

https://www.youtube.com/watch?v=dgMyk8jJIpA

Testimonial Type: Video

FASTSIGNS’ testimonial video focuses on several customers who love to use their product. It’s simple storytelling at its best and emphasizes the impact and end result of the products. This three-minute video has more than two million views.

8. BambooHR’s Case Study Testimonial

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Testimonial Type: Case Study

The big smiling picture of Angie stands out and invites readers to consider how BambooHR helped her organization. This is a real person that I’d love to trust.

The case study above focuses on the challenge, the solution, and the result. In addition, quotes from Angie are included in the content to personalize the testimonial and make it more relatable to readers.

A quote I love: “I can have training with the supervisors on how to utilize goals or assessments [in BambooHR], or how to do one-on-ones. And across the board, it’s the same, no matter the location. That brings that consistency you must have with multiple branches in multiple locations.”

9. OptinMonster’s Case Study Testimonials

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Testimonial Type: Case Study, Testimonial Quote

OptinMonster leverages social proof at scale by showcasing a large testimonial page with a pull quote and photo for each. When you click on one, it opens a complete case study with quantitative results illustrated at the top, followed by a narrative about the customer journey.

A quote I love: “We are all in on OptinMonster. It works seamlessly for us. It has allowed us to dramatically increase our email subscribers.”

10. Zendesk’s Customer Stories

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Testimonial Type: Case Study

Zendesk has a dedicated customer page that contains success stories of companies that use the product. The testimonials work for several reasons. Let’s take a look at the example above.

First, there are quote testimonials from the main players at Tile, offering social proof to readers. Second, the case study is also specific by highlighting the company’s challenges and how Zendesk helped.

A quote I love: “With the Zendesk and Ada integration, we were able to not only save costs on seasonal headcount, but we were also able to see revenue growth from customers who were being served at faster rates.”

Now that you’ve seen some excellent testimonial examples, let’s look at how to create your own testimonials.

Where and How to Share Testimonials

After you’ve collected several valuable testimonials and designed them the way you like, it’s time to consider how you’ll distribute them. I advise repurposing and adding them everywhere your potential customers might be! Look beyond the testimonial page with these placement ideas.

1. Share them on your website.

This is a simple use case for most businesses. For example, at Dock, Doty shared that they have testimonials on the home page and throughout the website.

Similarly, consider sprinkling social proof into your landing and services pages by adding a relevant quote or link to a case study on each one.

Creating a dedicated testimonial page to house all your testimonials and case studies is also important, providing potential customers with a central hub to visit when evaluating your product or service.

2. Use them in ad creatives.

Customer testimonials are powerful assets that can be repurposed into engaging ad creatives. Doty shared with me how the team at Dock uses customer interviews to create video clips for paid ads.

He explained, “As marketing collateral, we turn customer interviews into video clips and run paid ads to them on LinkedIn.”

3. Leverage them for organic content.

Testimonials can also be integrated across various types of content. For example, Inabo emphasized the importance of case studies in her content creation process at Float.

“For blog posts specifically, once we have testimonials, we use them in several ways: generating content ideas, writing ‘how-to’ sections in articles, and finding opportunities to incorporate them into upcoming content we want to optimize.”

4. Turn them into sales collateral.

Doty shared how Dock embeds customer testimonials and video clips into their sales strategy, saying, “For sales, we embed customer testimonials and video clips in our digital sales rooms.”

Similarly, Marmon explained how Sunbowl uses testimonials as social proof in its sales process when she told me, “They are primarily used in our sales strategy to show clients the work we’ve accomplished and how they can achieve similar results on their Shopify site.”

For service providers, testimonials can also be a great sales tool to support pitches and outreach. For example, as a freelance writer, Ojaokomo uses testimonials as social proof when pitching potential clients. He shared, “I use them on my website and also include them in my pitches to potential clients as a form of social proof.”

5. Use them to train internal AI tools.

This is an exciting and often underutilized use case, which I discovered through an interesting example shared by Inabo. She explained, “After we wrote the customer stories, my manager took them and plugged them into ChatGPT to train a model. This gave us a custom GPT that draws from the case studies to answer questions.”

6. Distribute on external review sites.

Publishing testimonials on third-party review sites can be a great way to expand their reach.

Doty shared, “We also ask if the customer is willing to leave a review on G2. Having that review publicly available on G2 gives more legitimacy to the testimonial when we feature it on our website.”

Testimonial Page Examples: What elements make a good testimonial page?

While many companies spread testimonials throughout their site, creating a dedicated testimonial page is also a good idea.

Testimonial pages are often one of the most visited pages by potential customers. Here are some critical components to include in your company’s testimonial page.

Choose headlines carefully.

Even though testimonials provide a wealth of value, many customers won’t take the time to read every one you put on your testimonial page.

One way to ensure potential customers easily find the testimonials most relevant to them is to use descriptive headlines. Instead of summarizing the entire testimonial into a headline, try only including the most essential part. It may be a comment on a specific product or a result the customer received by working with your company.

Ultimately, you’ll see better engagement rates if you keep headlines to around five to seven words.

Paint a complete customer profile picture.

As stated earlier, people are more likely to buy a product if a peer has had a good experience with the company or service. One way to connect a potential customer with a current client is through a customer profile.

In your testimonials, include all the information you can about the customer — age, gender, occupation, company, etc.

The more data you can share about the person, the more likely someone visiting the page will personally connect with the testimonial.

Consider featuring a single testimonial.

There are many ways to organize your testimonial page, but one of the most impactful is to consider featuring a single testimonial above all the others.

For example, if one of your company‘s key differentiators is your team’s customer service, you‘ll want to pick the best testimonial you have around a customer’s experience.

Having the glowing review be the first thing potential clients see can help drive home that your company prides itself on delivering exceptional service.

Now, let’s see how other companies utilize their pages to drive leads.

1. HubSpot

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On our own testimonials page, HubSpot features enthusiastic customer reviews detailing the benefits, quantitative results, and implementation journey to HubSpot. The teaser for each case study shows the company’s industry, size, and hubs used, letting readers pick a case study that’s closest to their experience.

What I love: The testimonials make it clear that the change was worth it for the customer.

2. Bluebeam

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Many companies struggle to grab people’s attention using their testimonial pages, but Bluebeam does a great job of catching your eye as soon as you arrive on the page.

While it’s technically called a case studies page, the first thing you see is a set of project examples in the form of large, bold images that rotate on a carousel.

What I love: Scroll down, and you can also click on video case studies and view customer panels.

3. mHelpDesk

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Visit mHelpDesk‘s testimonial page, and you’ll see videos and text testimonials equipped with pictures.

Some of the testimonial videos don’t have high production quality.

However, they get the message across and cover useful and relevant information — which shows you don’t need to invest thousands in production to get some testimonial videos up.

What I love: In line with the theme of earning trust, the testimonial page displays awards and badges of recognition.

4. ClearSlide

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One of the first things I noticed about ClearSlide‘s testimonial page is how creatively it’s named — “What They’re Saying.”

It includes a smattering of customer quotes, topped with client logos from big names like The Economist and Starwood.

Pro tip: If you have celebrities or influencers within their community, include and even highlight their testimonials on your page.

5. FocusLab

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FocusLab took a unique and very cool-looking design approach to its testimonial page — which is fitting, seeing as it‘s a design agency. Again, it’s technically a visual catalog of both previous projects and works-in-progress.

Instead of just listing client quotes, the page opts for a card-like design with interactive, rectangular elements you can click on to see the complete case study — with quotes occasionally appearing in between.

What I love: FocusLab not only covers the challenges faced by clients and how FocusLab helped solve them, but the case studies also include some of the steps in the design process.

6. 99designs

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99designs takes an unconventional approach to its testimonial page. Using a star-rating system not usually seen in the B2B sector, the page is headlined with an eye-catching video with customer reviews below it.

What I love: The page allows users to sort through customer reviews by category so they can read the ones most relevant to them.

7. Slack

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Slack’s customer testimonials are under a section they’ve called “Customer Stories,” highlighting an individual company per post.

Slack uses individual testimonials to highlight key product features and how the customer used them — a genius way to give a product tour while letting happy customers sing your praises.

What I love: Each review features a quote that summarizes how Slack helped the customer’s business. From each blurb, visitors can click to learn more about the specifics of that customer case study to get even more insights.

8. Dribbble

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Dribbble’s “wall of love” is clean and simple, with highlighted quotes, names, and photos. What I love about this page is how honest and straightforward the user reviews are.

It’s quickly clear to a reader that these testimonials haven’t been altered or edited — which lends the site a degree of authenticity and trustworthiness that might convince someone to start using the product.

Pro tip: Avoid over-editing your customer’s testimonials. Otherwise, it’ll sound like you wrote them even though you didn’t.

9. BioClarity

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BioClarity’s cruelty-free, plant-derived skincare line is about one thing: being green. Green is all over the website, and its Instagram is covered in images of people applying green serums to their faces.

In this case, pictures serve as better testimonials than words — but BioClarity still uses both.

On its reviews page, visitors can see pictures of items, star ratings, and words of recommendation — all in a soothing green theme.

What I love: Visitors can click on the reviews page to read in-depth product reviews from real customers from the results page.

10. Kissmetrics’ Customer Quotes

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Kissmetric’s testimonial page features quotes from three customers who describe how the software helped them achieve their goals.

Notice how they highlight different features that Kissmetrics offers and how using the software directly impacted their business.

What I love: This is a great example of a testimonial page that showcases the brand’s value.

11. Xero

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Xero’s customer stories page is beautifully designed and highly user-friendly. It features detailed biographies of its customers and really makes you feel connected to their stories.

In one example, we meet Amy, who’s using Xero’s software and services to run her business.

Her testimonial page includes quotes, videos, and plenty of pictures showing not only how Amy uses Xero but also showing off her interests and personality as well.

This makes Amy’s testimonial more relatable because it feels genuine to Xero’s target audience. And, since I feel like I know Amy through her page, I’m more likely to trust her testimonial.

Pro tip: Use storytelling elements to bring your customers’ experiences to life.

12. REI

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Here’s an excellent example of a blog testimonial page for an outdoor retailer. REI uses this section of its blog to promote different product benefits and uses.

What I love: Customers can contribute stories, and readers can vote and comment on the posts. This structure starts valuable conversations about the business and creates a community of like-minded customers.

13. Esch Landscaping LLC

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At the end of the day, if you’re an SMB, your testimonial page shouldn’t break the bank. You don’t have to build out an entirely new sector of your site to showcase your testimonials effectively.

Instead, build your testimonial page directly into your site’s interface, like the example above.

Esch Landscaping has a clean, straightforward testimonial page integrated seamlessly into its main site. It has videos highlighting the company’s work and individual quotes from clients who were satisfied with their experience.

What I love: This is an excellent example of how SMBs can execute a cost-effective testimonial page.

Writing Testimonials That Connect with Your Audience

As I’ve worked on this piece, I’ve come to appreciate how creating impactful testimonials requires a thoughtful, strategic approach. From establishing the right processes to asking the right questions and transforming feedback into compelling narratives, every detail plays a vital role.

By sharing practical tips and real-world testimonial examples throughout this post, I hope you‘ve gained valuable insights into how some of the best in the business create testimonials that not only capture customers’ experiences but also deeply resonate with their audience.

Think about the last time you had a great — or even terrible — customer experience. I experienced the former recently when I had a refund issue with a major airline. It started with an AI chatbot that collected all my information to get my background details in one place. I was then matched with a representative via text who quickly processed the refund and sent me on my way. The CS team used all of the green flags of service to help resolve my issue:

• Used AI to chatbot to respond efficiently.
• Personalized my experience with my user profile.
• Connected me with a representative to quickly solve my issue.

If that’s the gold standard, how can you make sure your customer experience lives up to it? In this article, I’ll share the top ways to measure — and improve — your customer experience. I’ll also share some of the latest data from our 2024 State of Service report to support these insights. Together, we’ll explore customer satisfaction, retention, resolution time, and more.

Table of Contents

• Top Customer Service Metrics Reps Track in 2024 [New Data]
• 11 Customer Service Performance Metrics You Must Track
• Exploring Additional Customer Service Metrics

Top Customer Service Metrics Reps Track in 2024 [New Data]

According to our State of Service report, the top KPIs service leaders track in 2024 are:

• Customer satisfaction score (CSAT).
• Revenue.
• Customer retention.
• Average response time.
• Average resolution time.

When choosing a list of five most important metrics, customer satisfaction and customer retention were selected by 31% of respondents. Followed closely behind are average response time (29%), average resolution time (26%) and customer lifetime value (26%).

Like my example with the airline, customers today are expecting swift action from your customer service teams. Tracking metrics can measure how satisfied your customers are and how quickly you serve their needs — because you can’t improve what you don’t measure.

Keep reading to see what top metrics you should track in 2024 to deliver exceptional customer experience.

11 Customer Service Performance Metrics You Must Track

1. Customer Satisfaction (CSAT)

Customer satisfaction measures how your customers feel about the customer service or support they received — and it’s the leading metric for CS teams to track, according to our State of Service report.

CSAT is typically measured by asking your customers to complete a quick survey post-service, whether by clicking a thumbs up or thumbs down or answering a few questions about their experience. How you collect this data is up to you.

What Customer Satisfaction Tells You

This crucial metric tells you how effective, helpful, and friendly your customer service team was and if your customer’s issue was fully resolved. It could also tell you whether or not they’d return with a question or concern based on your questions.

What to Look For When Measuring Customer Satisfaction

Look for positive responses, which means great customer experiences and a well-functioning customer service team. Negative responses can also help, as they tell you how to improve.

How to Improve Customer Satisfaction

Listen to what your customers are telling you. If your post-service survey doesn’t ask open-ended questions, consider following up with those who reported a negative (or thumbs down) experience and ask them for specific feedback.

Emily Stebbins, a contract manager at HubSpot, says, “I was always the most focused on customer satisfaction rate. If we were not solving the core issue(s) at hand, we were not satisfying our customers.”

Stebbins also stresses the importance of “asking the right questions, matching tone, and using comforting and helpful language … to assure movement and care.”

Pro tip: I recommend incorporating AI tools to improve customer satisfaction. Of the marketers surveyed in our report, 91% found that AI improved their customer service response time.

2. Average Ticket Count

Your average ticket count measures the average number of customer service or support tickets your team receives. You can measure these on a daily, weekly, monthly, quarterly, or yearly basis — or all of the above.

Navigating this can be extremely tricky when the number of tickets is higher than ever, and 82% of customers expect issues to be resolved immediately.

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What Your Average Ticket Count Tells You

While more tickets can be a confirmation that your customer service system is accessible and working, it can also indicate customers are having frequent issues — and that your product or service may be falling short.

What to Look For When Measuring Your Average Ticket Count

Look for fewer tickets, which means fewer problems for your customers.

How to Improve Your Average Ticket Count

Communicate your customer feedback to your product and marketing teams so they can understand what your customers may be dealing with or asking questions about. Depending on the number of tickets you receive, ensure you have enough representatives on your customer service team to handle the ticket volume.

Pro tip: I recommend using HubSpot Service Hub to speed up ticket resolution time and reduce the amount of time customer service reps spend resolving tickets/issues — a win-win.

3. Average Response Time

Your average response time tracks how long your customer service team takes to respond to a conversation after opening a ticket.

This metric measures how quickly your customers are being helped, as well as how quickly each ticket can be resolved. As customers feel long holds and wait times are the most frustrating part of customer service, it’s important to factor this metric into your service practices.

With the vast majority of customers expecting their issues to be resolved immediately, reducing your average response time will ensure that you are responding promptly to their needs.

What Your Average Response Time Tells You

This metric tells you how quickly your customer service team solves issues and gets back to customers.

What to Look For When Measuring Your Average Response Time

Look for quick response times, which demonstrate to your customers that their issues are your priority… which can lead to positive customer satisfaction measures.

How to Improve Your Average Response Time

Make sure your team is equipped to solve issues and answer questions. If they’re dependent on a manager, trainer, or product specialist, it’ll likely take longer to get back to customers with answers and solutions. Also, ensure your team handles and resolves the proper number of tickets at once — whether that’s one, five, or ten. If they’re too overwhelmed, it could slow down your customer service process.

4. Average Ticket Resolution Time

Your average ticket resolution time measures how long your team takes to resolve each customer service or support ticket.

What Your Average Ticket Resolution Time Tells You

This metric tells you about the efficiency of your customer service team and, potentially, the complexity of issues from your customers.

What to Look For When Measuring Your Average Ticket Resolution Time

Look for short resolution times, which means that your customers’ issues are being solved quickly — and more customers are walking away satisfied.

How to Improve Your Average Ticket Resolution Time

Take a look at the initial message your team sends to each customer. Make sure reps ask thoughtful questions and encourage the customer to explain their problem in detail. Also, ensure your team is well-versed in your products or services so they can respond and resolve issues quickly without having to reach out to other teams for help — thus lengthening the process. An internal knowledge base can also go a long way in giving reps the info they need to solve customer problems.

In addition, take note of tickets filed for the same issue. Jon Dorosh, a senior customer success manager at HubSpot, says, “If tickets related to a certain product or service tend to have an above-average resolution time, it may be a great opportunity to build further knowledge base enablement or schedule training for your internal teams.”

Pro tip: AI-powered reps will also be extremely useful in helping you efficiently meet the needs of modern customers.

5. Ticket Resolution Rate

Your ticket resolution rate measures how many issues are fully resolved in comparison to those that haven’t yet been resolved. This metric is also measured based on a period of time, like daily, weekly, or monthly.

You can also compare your ticket resolution rate to your ticket backlog to see how many tickets remain unresolved each day, week, or month. What constitutes a fast or slow ticket resolution rate will depend on other benchmarks you set for your team: ticket backlog amount, average response time, etc.

Calculate the ticket resolution rate using this formula:

Resolved Tickets / Total Tickets x 100 = Ticket Resolution Rate (%)

What Your Ticket Resolution Rate Tells You

This metric tells you how quickly and efficiently your customer service team is solving — and closing — tickets.

What to Look For When Measuring Your Ticket Resolution Rate

Look for a high rate, meaning fewer tickets are left unresolved.

How to Improve Your Ticket Resolution Rate

Be sure you have enough representatives to handle all of the tickets you receive. Are there other issues or distractions keeping your representatives from handling their assigned tickets and taking on new ones?

6. Preferred Communication Channel

The preferred communication channel isn’t as much a metric as it is an observation of how your customers prefer to contact you. Whether through email, live chat, social media, web form, or phone calls, keep track of how your customers reach out to you.

Customers also now expect omnichannel support across platforms.

According to the State of Service report, marketing leaders say the most effective customer service channels are:

• AI chatbots.
• Online chat with a human rep.
• In-person.
• Social media.
• Over the phone.
• Messaging apps.

What Your Preferred Communication Channel Tells You

This information tells you how your customers prefer to communicate with your business and what channels you should focus on and improve.

What to Look For When Measuring Your Preferred Communication Channel

You’re not necessarily looking for one channel in particular, but take note of customer patterns. These can help guide your customer service and support analysis.

How to Improve Your Preferred Communication Channel

Considering that ticket volume has increased significantly across all channels, offering omnichannel support is crucial.

In fact, according to research by the HubSpot Blog, 70% of service leaders say customer service needs to be available across every channel customers use.

Luckily, offering omnichannel support is one of the highest ROI strategies you can use. And using AI chatbots to increase your omnichannel support is one of the leading trends among marketers today.

7. Service Level Agreement (SLA)

A service level agreement (SLA) helps teams prioritize incoming tickets based on their importance and any pressing time constraints. They’re typically made between a business and its customer to ensure agents deliver on expectations.

What Your SLA Rate Tells You

Your SLA rate tells you how well you meet customer expectations, whether you can meet expectations on time, deliver solutions, and follow through on what you say you’ll do.

What to Look For When Monitoring SLA

When monitoring your SLA, refer back to the initial agreements you set with the customer. If they wanted a solution in a specific time frame, did you meet it? Your SLAs should contain the information that helps you understand whether you’ve performed or not, and it should be your main point of reference.

How to Improve Your SLA

Rachel Ang, a senior customer support specialist at HubSpot, says that consistently achieving the SLA for first response time set with customers helps build trust.

“Workflow automation software can help you and your teams improve your SLA rate,” says Ang, “as you can set up tickets, prioritize tasks, and set up notifications for SLA expiry dates, which can help reduce the likelihood of late resolutions or missed follow-up.”

8. Ticket Backlog

Your ticket backlog is a measure of how many unresolved tickets are waiting to be handled by your customer service team. This metric can also be measured against daily, weekly, or monthly increments.

What constitutes a “backlog” is subjective. Once you decide on your response and resolution time goals, any unresolved tickets beyond these benchmarks could be considered backlogged.

While speed isn’t the most important metric in customer service, it’s still critical to providing a positive customer service experience.

What Your Ticket Backlog Tells You

This metric communicates how fast your team is reaching, responding to, and resolving your tickets and how quickly tickets are coming in from customers.

What to Look For When Measuring Your Ticket Backlog

Look for fewer tickets in your backlog, as it would mean your team has an efficient and effective response time.

How to Improve Your Ticket Backlog

Understand your customer service process from start to finish. Are there any kinks slowing your representatives and inhibiting them from working on a new ticket? Do you have enough representatives to cover the number of tickets you’re receiving?

9. First Response Time

Your first response time measures how long it takes for a member of your customer service team to first respond to a new ticket or inquiry — essentially, how long a customer has to wait before they are helped.

As I said above, speed isn’t everything in customer service, but it sure provides a positive, enjoyable experience. Nowadays, customers expect to engage with someone immediately.

What Your First Response Time Tells You

This metric tells you how efficient your customer service team is and how long it takes them to open new tickets and respond to customers.

What to Look For When Measuring Your First Response Time

Look for less wait time for customers, which means a positive customer experience.

How to Improve Your First Response Time

Ensure nothing is holding your team back from opening new tickets and sending an initial response. Encourage your team to juggle a few tickets at once so newer customers feel that their inquiries have been heard or seen. As always, make sure your team is well-staffed to handle all your tickets.

10. First Contact Resolution Rate

Your first contact resolution (FCR) rate measures the rate of tickets resolved by your team’s first response to a customer inquiry. This is an important metric as it indicates how clearly and efficiently your team communicates and how much information you ask your customers to share when they first reach out.

In case you’re wondering, the average FCR is around 70%, a “good” FCR is between 70% and 79%, and a “world-class” one is over 80%.

However, not every issue is eligible for an FCR, especially if the customer makes a mistake or your representative has to consult with the product or IT teams.

When calculating FCR rate, consider this formula (instead of including all tickets in your calculation):

FCR Tickets/Total FCR-Eligible Tickets X 100 = FCR Rate (%)

Source

What Your FCR Rate Tells You

This metric tells you how efficient your customer service team is and how clearly they communicate and attempt to understand your customers’ problems. It also shows you how precise your customer support “instructions” are (i.e., how clearly you communicate the information you need from a customer to help them).

What to Look For When Measuring Your FCR Rate

Look for a high FCR rate, which means that your customer service team is communicating clearly and your customers understand what you need from them in order to help.

How to Improve Your FCR Rate

What do you tell customers you need from them to receive support? What form fields do you have in your customer support web form? The more information you request — and customers provide — upon initial contact, the quicker your customer service team can provide support.

11. Number of Interactions Per Ticket

The number of interactions per ticket measures how many times your customer service team interacts with the customer while their ticket is open and unresolved.

This metric can measure the number of interactions one service rep has with the ticket or the number of interactions that happen if the customer is passed around to different representatives before coming to a solution.

Considering that 92% of survey respondents say they’d spend more money with companies that ensure they won’t need to repeat information, the number of interactions per ticket is a critical metric.

What Your Number of Interactions Per Ticket Tells You

This metric shows you how effective each message or interaction from your customer service team is.

What to Look For When Measuring Your Number of Interactions Per Ticket

Look for fewer interactions per ticket, which means your team communicates clearly, asks the right questions, and works hard to solve each problem swiftly.

How to Improve Your Number of Interactions Per Ticket

Challenge your customer service and support teams to communicate clearly and reply with thoughtful questions. Ask them to encourage customers to explain their issues exhaustively, so your team can help them without so much back-and-forth. After all, 31% of consumers say that having to repeat themselves is their biggest frustration.

Exploring Additional Customer Service Metrics

In addition to the top 11 customer service metrics I’ve detailed here, many businesses include specific customer success and customer satisfaction metrics in their scoring. These metrics may include their Net Promoter Score (NPS) or customer retention and churn rates.

It’s up to you how you organize these metrics; we’ve detailed them in separate blog posts on customer success metrics and customer satisfaction metrics.

Track your customer service to create the best customer experience possible.

Customer service and support are multifaceted and multidisciplinary functions. These teams deal with countless customer issues, questions, and concerns regarding your products or services and their experience working with your business.

For this reason, customer experience doesn’t have the same cut-and-dried metrics as other business functions, but that doesn’t mean it’s not important to measure. In fact, it’s arguably the most crucial factor to measure because it’s one of the most direct customer touchpoints in your business.

Well-performing customer service departments lead to happy customers, and happy customers are your best marketers. So, use these metrics to improve your customer service and support processes — and boost your business’s bottom line.

Editor’s note: This article was originally published in June 2018 and has since been updated for comprehensiveness.

In June 2023, Reddit faced what seemed like a manageable challenge: implementing API pricing changes.

Instead, it spiraled into a massive platform-wide protest with over 8,000 subreddits going dark.

As a Reddit user, I saw this unfold in real-time as several subreddits I belong to joined the blackout. What started as a technical policy change quickly became a lesson in poor crisis communication.

Why? Poor crisis communication.

Rather than engaging transparently with moderators, Reddit‘s CEO Steve Huffman dismissed concerns, made contradictory statements, and failed to address the community’s core issues.

The result? A PR nightmare that could have been mitigated with proper crisis planning.

The lesson, I think, is that crises come when they’re least expected — which is why every company must have a crisis communication plan.

In this guide, I’ll show you how to create a communication framework that protects your reputation, maintains stakeholder trust, and confidently navigates any crisis that comes your way.

Table of Contents

• What is crisis communication?
• What is a crisis management plan?
• Crisis Communication Plan Examples
• Why is a crisis management plan important?
• Crisis Management Strategies
• How to Write a Crisis Communication Plan
• What to Include in a Crisis Management Plan
• The Crisis Management and Communication Plan Template

“Crisis management is always first and foremost about people,” says John Bailey, senior VP at GoCrisis.

“Focus on the harm done and calibrate your response to that — whether it’s a customer who bought a product that went wrong, or somebody who lost a loved one.”

Whether you actively manage it or not, your company’s reputation is already established in the minds of those familiar with your brand.

While researching corporate responses to crises, I realized that taking control of crisis communication allows you to shape the narrative rather than letting others define it for you.

By communicating openly during challenging times, you safeguard your reputation and foster deeper customer trust through transparency.

Now, you might be wondering, “What constitutes a crisis?” Let’s dive into some examples below.

Crisis Scenario Examples

Just about any scenario could manifest as a business crisis that warrants communication from your organization.

“You can almost guarantee that the day the bell rings and something really significant happens, it will be the one thing you never considered,” says Bailey, citing how a volcanic eruption in Iceland disrupted operations at Singapore’s Changi Airport — a scenario that scored so low on their risk register that it had never been considered.

Some of the most common types of crises include:

• Financial. Financial loss such as announcing a bankruptcy or store closures.
• Personnel. Staff changes that may affect operations or reputation such as employee furloughs, layoffs, or controversial behavior.
• Organizational. Misconduct or wrongdoing as a result of organizational practices.
• Technological. Technological failure that results in outages causing reduced functionality or functionality loss.
• Natural. Natural crisis that necessitates an announcement or change of procedure. For example, defining safety precautions amid a health crisis.
• Confrontation. Discontent individuals confront an organization as a result of unmet needs or demands.
• Workplace violence. Violence is committed by a current or former employee against other employees.
• Crisis of malevolence. A business uses criminal or illegal means to destabilize, harm, extort, or destroy a competitor.

In addition, anything else you can think of that could stall or halt business continuity is a good example of a crisis that warrants communication with customers and/or the public.

While crisis communication can be fairly reactive, it helps to have a crisis communication plan in place before you need to use it to make the process easier for your team members.

While reviewing different crisis management plans, I’ve discovered that the best ones do more than just list procedures – they serve as a structured framework to minimize the impact of crises, safeguard stakeholders, and ensure operational continuity.

Most importantly, a crisis management plan helps guarantee a quick release of information and a consistent message on all company platforms during a crisis. That message depends largely on what the crisis involves and how all parties are affected by it.

Why is a crisis management plan important?

At this point, you might be thinking: “A crisis management plan? That sounds like a lot of work for something we might never use. What’s the point?”

In reality, how you prepare for and respond to a crisis plays a major part in whether your organization survives it. According to Capterra’s 2023 Crisis Communications Survey, fewer than half (49%) of U.S. businesses have a formal documented plan.

Specifically, having a solid crisis management plan helps you:

Act swiftly when minutes matter.

During a crisis, your team might have to make dozens of critical decisions simultaneously. It could be facing cyberattacks, technology failures, or workplace violence — and that’s just the beginning.

Having to figure out your response in the moment is like attempting to build a lifeboat during the storm.

That’s why Carmel O’Toole, a seasoned journalist and award-winning PR practitioner, advises that “a holding statement should be issued within the first few moments. It doesn‘t need to say a lot, but it’s about establishing your organization as a central point of authoritative communication.”

Protect your reputation.

The first 24 hours often determine how your organization’s response will be remembered.

A crisis management plan ensures quick, consistent, and transparent communication, which explains why 84% of leaders who’ve experienced a crisis say they would increase practice sessions afterward.

“Resources are finite,” O’Toole advises, “so focus on the most likely scenarios. Do a risk assessment — look at both likelihood and potential impact to prioritize your crisis planning.”

Keep your team aligned.

A crisis management plan ensures everyone knows their exact role and responsibilities. As O’Toole emphasizes, “Who handles media communications? Who manages operational continuity? Who coordinates with emergency services?”

These aren’t questions you want to be asking in the middle of a crisis.

Your team members are also your most important ambassadors. “Staff should not be last in line to hear about what’s going on,” she notes.

While it‘s important to have media policies in place, this shouldn’t be treated as a gag order — it’s about ensuring inquiries are directed to the proper channels and that everyone can respond confidently and consistently.

When these roles and responsibilities are clearly defined, your organization can respond as a unified front rather than scattered individuals.

This coordinated approach makes all the difference when time is of the essence and every decision counts.

Crisis Management Strategies

1. Spokesperson Response

In my analysis of corporate apologies during crises, I’ve found that humanizing the response — whether through a CEO statement or designated spokesperson — consistently leads to better outcomes than technical or legal-focused responses.

“Ignore the noise and focus on what you own as a responsibility,” advises Bailey, drawing from his experience leading Malaysia Airlines’ communications during the MH370 incident. “The first currency that you have in a crisis is information,” he adds.

Choosing a good communicator is important, as their actions will influence how your key stakeholders react to the situation. If they can make your company look human and your mistakes appear manageable, that will play a major role in maintaining stakeholder support.

2. Proactive Damage Control

When examining cases where companies have successfully avoided potential crises, I’ve noticed that systematic preparation is the key factor differentiating containment from catastrophe.

In my research on cybersecurity incidents, companies that invested in preventive measures consistently achieved better crisis outcomes than those that were forced into reactive responses.

Proactive damage control is what you do to reduce or prevent the effects of a crisis before it occurs. For example, adding security software that records and backs up company data will help you avoid a malware crisis. Additionally, you can train your employees to watch out for suspicious or harmful emails that might reach their inboxes.

At HubSpot, our security team sends out routine training videos to educate employees about different security protocols. The videos are short and the multiple-choice quizzes are so light-hearted that they act as additional learning tools in case you didn’t pay close attention to the video.

This makes training easy to consume and, more importantly, effective in teaching employees how to protect company data.

3. Case Escalation

Sometimes, crises can be resolved on the individual level before they reach a viral tipping point. For these cases, it helps to create an escalation system within your customer service team that can diffuse the issue before it gets out of hand.

At HubSpot, we have specialists who work on complex or time-sensitive cases. When customers have needs that require additional attention, our experts intervene to assist. This helps the service rep manage a tricky situation and ensures a more delightful experience for our customers.

4. Social Media Response

In analyzing how companies respond to crises on social media‌, I’ve observed an interesting pattern: the speed of information sharing on social platforms can transform a minor incident into a major crisis before a company can react.

What makes social media particularly challenging for crisis management is its dual nature: while it’s a powerful marketing tool that allows companies to reach audiences across the globe, this reach works both ways.

Customers can share stories, post pictures, and upload videos for the world to see. One viral video painting your company in the wrong light can lead to millions of people developing a negative perception of your brand.

Crises are battled both in-person and online. So, your company needs a social media plan that can manage the digital buzz around your business.

This may include assigning more reps to monitor your social channels or updating followers with new information. But, regardless of how you use it, social media can’t be ignored when your company is working through a crisis.

5. Customer Feedback Collection and Analysis

Sometimes, a crisis occurs, but it isn‘t on the front page of the news or going viral on social media. Instead, it’s silently affecting your customers and causing churn, but you‘re unaware of it because you’re not gathering enough feedback from your customers.

Gathering feedback is an excellent way to prevent a crisis. It provides insight into how customers are feeling about your business, allowing you to spot major roadblocks before they escalate into a crisis. Customers can also share negative criticism that you can use to improve other customers’ experiences.

When faced with an unhappy or escalated customer, our success team recognizes this as a chance to collect customer feedback. They begin interactions by asking customers to review their experience and discuss any unsatisfactory elements. This helps our team create actionable steps that they can use to align themselves with the customer’s needs.

Rachel Grewe, a HubSpot Customer Success rep, explains this strategy in the quote below.

“I open with asking for the opportunity to hear their feedback on their experience, then I make sure to close with actionable next steps for myself and the customer. An escalated customer isn’t always a sign of failure but an opportunity to demonstrate our commitment to our customer’s success.”

How to Write a Crisis Communication Plan

“If something happens that brings consequences for you as a business, that thing has already happened. You can’t turn the clock back,” says Bailey.

With this consequences-first mindset, here’s how to create your crisis communication plan.

1. Identify the goals of the plan.

I recommend focusing your crisis communication plan on specific, measurable outcomes rather than just broad goals.

The goal of a crisis communication plan is to ensure rapid, transparent, and unified messaging that protects the organization’s reputation, restores trust, and maintains operational continuity.

For example, in a product recall scenario, the objective might include achieving a 90% resolution rate within 48 hours while minimizing negative sentiment by 30% on social platforms.

To measure success, establish clear metrics such as response time, stakeholder engagement levels, and recovery benchmarks that align with the organization’s strategic priorities.

2. Identify stakeholders.

Effective crisis communication begins with stakeholder identification and prioritization.

Stakeholders should be segmented into primary and secondary groups based on their level of impact and influence.

For example:

• Primary stakeholders. Customers affected by service disruptions, employees managing crisis operations, and investors requiring reassurance about the company’s stability.
• Secondary stakeholders. Media outlets monitoring the story, regulators overseeing compliance, and industry partners dependent on the company’s operations.

Use a prioritization framework to guide communication flow.

For instance, during a major outage, customers and employees need immediate updates, while media statements can follow after internal alignment. Tailor messaging to each group’s needs: investors may require data on financial impact and recovery timelines, while customers need actionable next steps to resolve their concerns.

Additionally, maintain a centralized database of stakeholder contact information and communication preferences. This ensures rapid outreach and minimizes delays during high-pressure situations.

3. Create a hierarchy for sharing information on the crisis.

Establishing a clear hierarchy for sharing information ensures timely and accurate communication during a crisis.

I think the most critical aspect here is ensuring no information gets lost between teams.

This hierarchy should adapt to the nature of the crisis and account for backup roles to avoid delays.

A typical structure might include:

1. Initial reporting. The first person to identify the crisis (e.g., a customer service agent noticing a social media backlash) escalates it to their direct manager.
2. Leadership notification. Department heads evaluate the situation and notify the Crisis Response Lead (e.g., COO or Head of Communications) with all available details.
3. Cross-functional coordination. The Crisis Response Lead convenes a task force, which may include the CEO, General Counsel, and department heads, depending on the crisis type.
4. External experts. For high-stakes situations, legal advisors, PR consultants, or cybersecurity firms are brought in to provide expertise.

For example, in a cybersecurity breach, the IT team identifies the issue and escalates it to the CTO. The CTO notifies the Crisis Response Lead, who activates the plan, including contacting legal counsel for regulatory reporting requirements and the PR team for stakeholder communication.

Ensure all roles in the hierarchy are well-documented, with designated backups to handle absences. Clearly outline decision points, such as “Media statements require CEO sign-off within one hour of draft completion,” to maintain alignment.

4. Assign people to create fact sheets.

Assigning the right team to create fact sheets is critical for maintaining accurate and consistent messaging. Fact sheets should outline key details, such as the nature of the crisis, its impact, and immediate next steps, tailored to the intended audience.

In my view, fact sheets work best when they anticipate stakeholder questions rather than just stating company positions.

To streamline this process, focus on:

• Roles and responsibilities. Assign a content lead to draft the document, a subject matter expert to ensure accuracy, and an approval lead to finalize it. For example, in a data breach scenario, the IT team provides technical details while the PR team adapts them into an accessible language for customers.
• Templates and tools. Use pre-designed templates or crisis management software to ensure clarity and speed. Fact sheets for media might include a concise incident summary and approved quotes, while enterprise clients may require a detailed timeline and resolution roadmap.
• Timeline management. Set deadlines based on crisis urgency. For instance, during a service outage, prepare a fact sheet within 30 minutes for internal use, with a customer-facing version ready within 2 hours.
• Real-time updates. Fact sheets should be living documents that evolve as new information becomes available. Proactively update stakeholders to prevent misinformation and build trust.

For example, during a service disruption, the initial fact sheet might confirm the outage and estimated resolution time. As the investigation progresses, updates can include the root cause, recovery actions, and steps to prevent recurrence.

5. Identify and assess example crisis scenarios.

Identifying and assessing potential crisis scenarios allows your organization to prepare for high-impact events proactively.

Start by creating a list of likely scenarios relevant to your business and assessing them using a likelihood-impact matrix. This approach prioritizes your response plans based on the probability of occurrence and the potential damage to your organization. Below are some potential scenarios.

• Cybersecurity breach: A hacker gains access to customer data, triggering regulatory reporting requirements and public concerns about data privacy.
• PR scandal: An executive’s controversial comment goes viral, leading to calls for accountability on social media and demands for a public apology.
• Operational failure: A major service outage disrupts customer operations during peak business hours, resulting in financial losses and reputational damage.

For each scenario, outline potential impacts (e.g., regulatory penalties, customer churn) and craft tailored mitigation strategies.

For instance, in a cybersecurity breach, your response plan should include immediate containment steps, regulatory disclosures, and customer communication templates.

Collaborate across teams to build robust scenario assessments. Legal teams can provide insights into regulatory risks, IT teams on operational vulnerabilities, and PR teams on reputational threats. Regularly revisit and update these scenarios based on changes in your business or industry trends.

6. Identify and answer common questions.

During any crisis — no matter how big or small — people are going to ask questions. Whether they are customer advocates or reporters, the public will want to uncover the truth. After all, in most cases, companies are seen as guilty until proven innocent.

Crisis communication plans can help you identify and answer questions that you can expect to be asked during your crisis scenarios.

Pro tip: I suggest building your Q&A document based on actual stakeholder concerns rather than assumptions. Use the potential scenarios you identified to structure this doc.

You can also collaborate across teams to build robust scenario assessments. Legal teams can provide insights into regulatory risks, IT teams on operational vulnerabilities, and PR teams on reputational threats.

Regularly revisit and update these scenario responses based on changes in your business or industry trends.

7. Identify potential risks.

Identifying potential risks is essential to prepare for the challenges your crisis communication plan may face. Based on my analysis, effective risk identification requires thinking beyond immediate operational concerns.

Start by categorizing risks into key areas such as:

• Operational risks. Delayed responses or misinformation spreading internally.
• Reputational risks. Loss of customer trust due to inadequate communication or slow action.
• Legal and regulatory risks. Non-compliance with disclosure requirements or breaches of contractual obligations.
• Financial risks. Increased costs due to service recovery or customer churn.

Use a risk probability-impact grid to assess and prioritize risks. For example, a cybersecurity breach might have a low likelihood but high impact, requiring proactive contingency plans.

Develop pre-approved mitigation frameworks for high-risk scenarios. For instance, in a PR crisis, your framework might include immediate coordination with legal counsel to vet public statements or pre-drafted customer communication templates.

Understand cascading risks, where one issue triggers others. A data breach, for instance, may lead to legal fines, customer dissatisfaction, and a drop in stock value. Addressing the root cause swiftly can prevent secondary risks from escalating.

Finally, perform a post-crisis analysis to identify gaps in your risk management strategy and incorporate lessons learned into your plan. This continuous improvement process ensures your organization is better prepared for future crises.

8. Create guidelines specific to social media.

Social media is often the front line in crisis communication, requiring swift, transparent, and platform-specific responses. I’ve found that social media requires its own distinct crisis response framework due to its real-time nature.

Here’s what I recommend to manage a crisis effectively.

• Tailor your messaging for each platform. For example:

• Use concise, real-time updates for X, focusing on key facts and reassurances.
• Maintain a professional tone on LinkedIn for updates aimed at investors and partners.
• Adopt a customer-centric and empathetic approach for Instagram or Facebook audiences.

• Deploy tools like Hootsuite or Sprout Social for continuous monitoring of mentions, hashtags, and keywords related to the crisis. Use AI-driven sentiment analysis to detect trends and adjust your messaging accordingly.
• Leverage relationships with trusted influencers or brand advocates to share accurate information and counter misinformation.
• Establish a rapid response team dedicated to identifying and addressing false narratives before they gain traction. For example, correcting viral misinformation with pinned posts or official replies.
• Ensure messaging across platforms is empathetic and transparent while reflecting the brand’s voice. Avoid overly formal responses on customer-focused platforms and overly casual tones on professional networks.
• Provide consistent updates at predictable intervals (e.g., every hour for fast-evolving crises). Avoid overwhelming your audience with excessive posts while ensuring you remain visible and accessible.

Pro tip: During a service outage, post real-time updates on X every 30 minutes, while using LinkedIn for a professional incident summary and estimated resolution timeline. Proactively address customer inquiries on Instagram and Facebook with pre-approved FAQs tailored to the crisis.

What to Include in a Crisis Management Plan

If the idea of crafting a crisis management plan feels overwhelming, take a deep breath — it’s more manageable than it sounds. And the payoff? A roadmap that helps you navigate stormy seas with confidence.

A strong plan ensures your team can act decisively, communicate effectively, and stay aligned when it matters most. Here’s what to include.

1. Crisis Response Team

Think of this as your organization’s emergency task force. Who’s taking the lead? Who’s the backup? And who’s handling media inquiries? These roles should be crystal clear.

“Your spokesperson should embody the Five C’s: Clarity, control, concern, confidence, and competence,” O’Toole advises.

Make sure contact details are up-to-date so there’s no scrambling when minutes count.

2. Communication Protocols

When a crisis hits, everyone — from employees to customers — needs clear, consistent information. Outline who communicates what and how, from pre-approved templates to specific messaging channels.

“Transparency is key,” O’Toole explains. “Pre-planning helps maintain trust while avoiding missteps in the heat of the moment.”

3. Emergency Response Procedures

No one wants to figure out evacuation plans or safety protocols on the fly. Document these steps ahead of time, and keep holding statements ready to issue within minutes. Preparation now saves precious time later.

4. Business Continuity Measures

Crises can disrupt operations — but they don’t have to derail them. Detail how your organization will keep critical functions running, from backup systems to recovery procedures.

“Think beyond the basics,” O’Toole suggests. “What happens if your primary systems fail? Do you have backup tools to keep critical systems up and running?”

5. Stakeholder Management

Your employees, customers, vendors, and investors are counting on you. A crisis management plan should address their needs with care and precision.

“Employees are often overlooked,” O’Toole notes, “but keeping them informed is critical. They’re your most important ambassadors.”

6. Training and Testing

A plan is only as good as your ability to execute it. Regular simulations and scenario planning help uncover weaknesses before a real crisis occurs.

Simulations are invaluable because they highlight vulnerabilities so you can address them proactively.

7. Resource Inventory

List everything your team might need, from backup communication tools to emergency supplies. Being prepared means you won’t have to scramble for essentials in a moment of chaos.

8. Legal and Compliance Considerations

Addressing legal and regulatory obligations is non-negotiable.

While some legal teams might advise silence, O’Toole cautions against shutting down communication entirely: “Maintaining public trust often requires open, honest dialogue.”

9. Plan Maintenance

A crisis management plan is not a “set it and forget it” document. To ensure its effectiveness, schedule quarterly reviews and revisit lessons learned after each crisis.

Challenging situations offer invaluable insights. Use these insights to refine your plan and strengthen your organization’s resilience.

The Crisis Management and Communication Plan Template

It can be difficult to get your crisis communication plan started from scratch. Use HubSpot‘s Crisis Communication Plan Template to build out your company’s plan. Included are charts, sections, and prompts to help you document your company’s strategy when a crisis hits.

1. Create an incident response team.

First up? Create a core incident response team and broadly define their responsibilities when a communications crisis occurs. Create a list of everyone on this team along with their email and phone number in addition to a group email or chat that can be used to activate the entire team at once. Then, build a greater response team to help support the core group. This may include departments such as customer support, legal, social media, C-suite executives, and security.

Regularly reevaluate these lists to keep them current and ready to go at a moment’s notice.

2. Identify roles and responsibilities.

Next, identify the roles and responsibilities of each team member in the core group and those in greater departmental response teams. For example, you might assign one member of your core team the job of managing social media communications, while another may be tasked with drafting a public statement.

Departments such as social media, meanwhile, should each have their own crisis contact with their own set of responsibilities — such as creating a larger-scale campaign to minimize public fallout.

3. Implement an escalation framework.

Crisis response comes with substantive stress: Companies must act quickly to resolve issues without making things worse. As a result, it’s worth implementing an escalation framework to help guide your response:

Step 1: Alert

Ensure that all relevant team members are notified ASAP. Define specific communication channels for this process.

Step 2: Assess

Assess the severity of the incident and your potential response. Key questions to ask include: What happened? Where and when? Who was affected and involved? How much do we know?

Step 3: Activate

With the initial assessment complete, activate the relevant team members and their department contacts to help begin the crisis management process. The first steps might include calling an all-hands meeting, responding to immediate media inquiries, and drafting communications to customers and other affected stakeholders.

Step 4: Administer

Crisis communication persists over a few weeks or months. As a result, it‘s critical to continually monitor what’s happening and what’s changing to ensure communication is administered effectively.

Step 5: Adjourn

When the worst of the crisis has passed, regroup your team to debrief how the crisis was handled, what outcomes occurred, and what changes could be made to improve overall response. It’s also worth having at least one staff member regularly monitor the situation in case another response is required.

1. University of Washington

In a university crisis communication plan, it’s essential to focus on crises that may affect normal school and administrative functions.

For instance, my college always emails students if a dangerous incident occurs on or near campus and gives us a list of tips to remain safe. Universities also plan for crises such as marches or protests, injuries or deaths of community members, and bad press relating to the school.

Source

The University of Washington has an extensive crisis communication plan geared toward preserving the safety and security of community members.

As a university, the main audiences for communication include students, faculty, staff, parents, and alumni, as well as visitors, temporary residents, the general public, and the media.

What I like: The attention to detail in all the varied organizations included in the team of representatives shows an added layer of consideration during a crisis. Having a list of reps at hand guarantees a proper and timely response.

2. Southwest Airlines

Southwest has consistently been one of the safest airlines in the world. However, that doesn‘t mean the company doesn’t experience accidents.

On Flight 1380, an engine malfunction resulted in the death of a passenger and was recorded as the company‘s first in-flight fatality. The company’s CEO, Gary Kelly, immediately responded to the situation by offering a sincere, heartfelt apology to the victim’s family. He then pulled all advertising from their social media channels and made personal phone calls to passengers offering support and counseling resources.

Why this was effective: Although crises like these are hard to imagine, they do occur and have a significant impact on businesses. Despite Southwest‘s lack of prior experience with such an accident, the CEO exhibited readiness for the situation and displayed genuine regret through his statements and the company’s actions.

3. Boeing

Boeing experienced a major crisis when two of its 737 Max airplanes fatally crashed in Indonesia and Ethiopia just five months apart in 2018 and 2019. The crashes killed a combined 346 people and the manufacturer is still suffering the fallout from the events.

At first, Boeing blamed pilot error for the crashes until information surfaced later that it was a flight control software issue. In response, the FAA and other global regulators grounded all Boeing 737 Max planes for 20 months until they could figure out what software glitch was causing the fatal crashes.

As a result, Boeing’s stock price plummeted, and it was forced to halt production of the Boeing 737 Max, costing the company billions in losses. Once the pandemic hit in 2020 and air travel slowed, Boeing faced another crisis as orders for the model were canceled, leading to more financial losses.

To make matters worse, when the 737 Max planes were finally cleared to fly in November 2020, they were grounded again in early 2021 after electrical issues were discovered. In 2021, Boeing was ordered to pay $2.5 billion to settle charges that the company hid issues with the plane from safety officials.

At first, Boeing deflected blame for the crashes to “inexperienced pilots,” but an investigation later showed that Boeing’s flight control software was the main contributor to the crash. Moreover, the US Justice Department found that Boeing knew about the software issue and tried to conceal the faulty software from investigators.

“Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception,” stated a DOJ press release regarding Boeing’s fraud charges.

While nothing would have made up for the loss of life, Boeing would have been better off coming clean about the existing software glitch. Its efforts to conceal the issue meant that pilot training manuals lacked information about the faulty system, which forced planes to nosedive after it overrode pilot commands.

What could’ve been better: Had Boeing been transparent about its automated flight control system, including it in its manual and informing customers of the aircraft software, tragedy could have been prevented.

4. Virginia Department of Education

Similar to universities, schools need to deal with crises efficiently, especially if they impact the normal class schedule. Since schools deal with children, parents and guardians must be made aware of any situations that could affect their children’s education, safety, or health.

Source

The Virginia Department of Education has created a lengthy management plan, including crisis communications. The plan highlights various crises that would require communication with parents — such as a school bus accident —and gives letter templates that can be quickly sent out.

What I like: This crisis communication plan lists several different types of symptoms that parents or guardians are instructed to watch out for. This is vital because it isn’t always clear how students are affected, and it is important for their care to know what to look out for.

5. KFC

In 2018, restaurant chain KFC got into an awkward situation when it ran out of chicken to serve its customers. Having built its brand on its 11-spice fried chicken recipe, this was a crisis that the company probably didn’t plan for.

But, KFC‘s marketing team quickly got to work and was able to put a positive spin on the situation. They released videos and tweets like the one below that light-heartedly apologized for the shortage and showed off the brand’s humility.

Source

This is why a crisis communication plan is essential for restaurants. Some scenarios you’ll want to plan for are the spread of foodborne illness, unsanitary working conditions, and, of course, delivery issues affecting food supply.

What I like: While the brand typically doesn’t take itself too seriously (like its humorous social media marketing campaigns), it presented customers with the facts and explained what it was going to do to better serve them.

6. Amazon

Amazon faced criticism in December 2021 after a tornado ravaged one of its warehouses in Edwardsville, Illinois. Six people died in the warehouse collapse in Illinois as a series of tornadoes ripped through parts of Tennessee, Kentucky, and Arkansas.

Once reports surfaced of Amazon warehouse workers allegedly being forced to continue working through tornado warnings, the company’s health and safety guidelines quickly came under scrutiny.

Amazon’s first misstep was a delayed public response. CEO Jeff Bezos took nearly 24 hours to respond to the warehouse collapse.

“The news from Edwardsville is tragic. We’re heartbroken over the loss of our teammates there, and our thoughts and prayers are with their families and loved ones”, Bezos tweeted. “All of Edwardsville should know that the Amazon team is committed to supporting them and will be by their side through this crisis. We extend our fullest gratitude to all the incredible first responders who have worked so tirelessly at the site.”

Bezos was quickly lambasted across social media, with many suggesting that his statement was insincere.

What could’ve been better: When such a tragic loss of life happens, it‘s best to come out with a statement that expresses empathy sooner rather than later. Bezos’ reply came across as insincere in part because it was delayed. The CEO had been steadily tweeting and posting about the landing of Blue Origin throughout the day, so by the time he commented on the tornado tragedy, it seemed like an afterthought.

7. Burger King

In the fall of 2019, a man who follows a vegan lifestyle filed a lawsuit against popular fast food chain Burger King on the basis that the company misled other vegan customers regarding the newly introduced Impossible Burger. Upon realizing the meatless patties were prepared on the same grill as the 100% beef burgers, the plaintiff alleged that the ads weren’t clear that the burger was not completely meat-free.

Other popular fast-food chains like Subway and Wendy’s have experienced similar crises in the past regarding issues with food preparation. Although both were unfounded claims, they caused a significant crisis for both brands. It’s not a surprise that Burger King experienced similar, unfounded claims.

Although Burger King had a strong rebuttal against the lawsuit, the company awaited the decision of the judge who dismissed the case a year later due to a lack of evidence from the plaintiffs.

Why this was effective: Burger King was successful in this crisis communication because it allowed the crisis to run its course without intervening more than necessary. At the announcement of the case dismissal, Burger King responded, “This claim has no basis.”

8. United Airlines

No list of crisis communication examples would be complete without mentioning United Airlines. Already under pressure for less-than-stellar customer service, the 2017 video of Dr. David Dao being dragged out of his seat when the airline overbooked put United into a tailspin.

Their first response? Not great. United’s CEO tried to blame Dao, calling him “belligerent” and “disruptive.”

Not surprisingly, this didn’t sit well with the public, and #boycottUnited hashtags began trending. The company then did an about-face, took full responsibility, and pointed to changes being made.

What could’ve been better: Businesses should lead with empathy in situations where emotions run high. While United’s image did stabilize over time, the changed tactics strategy is a good example of what not to do when a crisis comes up.

9. Hollywood Foreign Press Association

In 2021, the Hollywood Foreign Press Association was under fire for its lack of diversity and inclusion. Over 100 PR firms — and their celebrity clients — threatened to boycott the Golden Globes unless the HFPA committed to “transformational change” within the organization.

“We call on the Hollywood Foreign Press Assn. to swiftly manifest profound and lasting change to eradicate the longstanding exclusionary ethos and pervasive practice of discriminatory behavior, unprofessionalism, ethical impropriety, and alleged financial corruption endemic to the HFPA, funded by Dick Clark Productions, MRC, NBCUniversal and Comcast,” the publicists said in a statement.

“To reflect how urgent and necessary we feel this work is, we cannot advocate for our clients to participate in HFPA events or interviews as we await your explicit plans and timeline for transformational change.”

In response to the outcry, the HFPA pledged to increase its membership to a minimum of 100 people and to require at least 13% of its members to be Black journalists.

While the HFPA has since implemented several changes, including increasing membership to 105 members, the organization still has a lot of work to do in order to regain the trust of the entertainment industry. Not only was the Golden Globes ceremony telecast canceled in 2022, but many publicists maintained their position on having their clients boycott the organization.

What could’ve been better: Had the HFPA listened to concerns and implemented change sooner, it might have been met with less scrutiny.

10. Cracker Barrel

In 2017, a man named Bradley Reid asked a question on Cracker Barrel’s corporate website: He wanted to know why his wife had been let go from her 11-year manager position at one of the company’s Indiana locations.

The social media firestorm came quickly, with #JusticeForBradsWife trending and other brands posting signs that they would be happy to hire Brad’s wife.

Source

Cracker Barrel‘s response? Silence. The public never learned the circumstances of Brad’s wife’s job loss, and after a few months the crisis blew over.

In this case, weathering the storm worked for Cracker Barrel, in part because the issue revolved around a single person and their specific circumstances.

Speaking up — even if the job loss was benign — could have resulted in questions about personal privacy and also put the company on the defensive. Instead, they chose to wait out the storm.

Putting It All Together: Making Theory Work in Practice

After months of researching and analyzing crisis communication strategies, one truth stands out: no company is immune to a crisis, but every company can be prepared.

After reading dozens of case studies and expert interviews, I’ve discovered that the difference between a crisis that strengthens a brand and one that damages it often comes down to preparation and humanity.

What struck me most was how the best crisis communicators emphasize that crisis management is fundamentally about people.

Whether analyzing KFC‘s chicken shortage or Boeing’s 737 Max crisis, I found that the companies that handled crises best weren‘t those with the biggest PR teams – they were the ones that had clear plans, spoke with authentic voices, and weren’t afraid to admit mistakes.

The most powerful insight I gained? A crisis, when handled well, can actually strengthen stakeholder trust.

Through this research, I‘m convinced that crisis communication isn’t just about damage control – it‘s about demonstrating your company’s values when they matter most. I hope this guide helps you build a crisis communication plan that reflects your organization’s best self, even in its most challenging moments.

Editor’s note: This article was originally published in May 2019 and has since been updated for comprehensiveness.

When I think about the businesses I stay loyal to — from my go-to software provider to my favorite airline to my local yoga studio — it’s not because they’re the cheapest or even the most innovative. It’s because they make my experience as a customer easy, personal, and genuinely enjoyable.

Most customers today are like me; they have more options than ever and gravitate to products that offer genuine value. This is where customer experience automation can be incredibly helpful. And it’s more than just using a basic AI chatbot — AI is helping teams automate tedious tasks, uncover customer insights and expectations, and provide a personalized experience, all while ensuring a human touch when it matters most.

Table of Contents

• What is customer experience automation?
• Benefits of Customer Experience Automation
• How to Automate Customer Experience
• 5 Tips for Automating the Customer Experience

According to our State of Customer Service Report, the majority of service teams are already implementing some form of automation in their process.

• 77% of service teams are using AI.
• 79% of service pros using AI find it effective.

Paulius Milišauskas, vice president of customer operations at Omnisend, explains how CX automation plays a role in his team: “Our primary goal is not efficiency itself, but customer satisfaction through service efficiency. We automate all processes that can simplify our clients’ experience.”

Why Customer Experience Matters More Than Ever

It’s important not to miss the big picture when talking about automation. Delivering a great customer experience deserves your attention, time, and investment because it makes customers more likely to be loyal, increase their spending, and even advocate for your brand.

• Loyalty reduces churn. And 20% of companies in our State of Service survey identified preventing churn and boosting retention as a challenge when creating a great customer experience.
• Better CX boosts CLV (Customer Lifetime Value).
• Good CX turns customers into advocates.

And looking at the top challenges service leaders face when trying to deliver a great customer experience, AI can help immensely.

How I Apply Customer Experience to My Business

Even though I’m not running a large customer service team, CX plays a huge role in how I run my freelance writing business. My ideal clients — usually marketing teams — have access to hundreds of talented writers with similar skills. So why would they choose me?

The answer often lies in the experience I provide.

A great client experience makes long-term relationships easier to build. I make sure to go beyond delivering solid writing: I’m responsive, proactive, and focused on making the process smooth and enjoyable. That effort pays off:

1. Clients come back for future projects.
2. They often increase the value of their work with me, asking for additional services or larger scopes of work.
3. They recommend me to others, which brings in new opportunities.

And while I don’t use automation as extensively as an enterprise team might, there are plenty of ways I could bring it into my business to enhance my CX. For example:

• I can use data to understand my clients better. AI could help me analyze past projects to spot trends in terms of contract value and length, as well as what types of projects clients are most satisfied with or where delays tend to happen.
• I can automate feedback requests by sending automated follow-ups after projects to gather feedback that can help me improve and add more value. (This also means one less email I have to manually send!)
• I can streamline testimonials and referrals. An automated system can ask clients to share more about their experience and refer me to others in their network.

Benefits of Customer Experience Automation

Hopefully I’ve already made it clear how valuable automation can be to deliver a great customer experience — but don’t just take it from me. I spoke to a few CX experts to learn more about the key benefits of CX automation and how they’re seeing it play out in their business.

Improved Response Times and Availability

Today’s customers aren’t patient. (I know. I’m working on it, too.)

According to our survey, 82% of consumers expect issues to be resolved immediately. Automation helps you meet these expectations by streamlining tasks like ticket routing, providing instant answers through chatbots, and offering 24/7 availability.

According to Omnisend’s data, while human specialists typically respond within five minutes, AI systems provide instant responses. This immediate availability ensures customers get help whenever they need it, regardless of time zones or business hours.

When customers feel heard and their issues are resolved quickly, they’re far more likely to stick around.

Lauren Parker, founder of LMR Digital Marketing, explains how she helped a client automate lead follow-up and saw impressive results: “When partnering with Blissful Minds, a telehealth weight loss service, we implemented an email workflow that drastically cut response times. This approach helped them generate over 1,500 new patient leads and efficiently scale their services.”

Enhanced Efficiency

Automation lightens the load for your customer service team by handling repetitive or time-intensive tasks, like data entry or answering FAQs. This means your team can focus their time and energy on more complex issues that require a human touch.

For example, Salesforge increased onboarding engagement by 23% within 30 days by automating client check-ins and delivering timely, personalized resources, founder V. Frank Sondors told me.

Better Data-Driven Decision-Making

By automating data collection and analysis, you can uncover insights about your customers’ needs, preferences, and pain points. This makes it easier to make informed decisions and proactively improve the customer experience.

According to Sidharth Ramsinghaney, director of strategy at Twilio, organizations implementing AI-driven personalization are seeing powerful results: “45% report improved customer satisfaction scores, while 41% are achieving better data-driven decision making and market segmentation.”

Increased Revenue Through Personalization

Customers want to feel valued, and automation helps you deliver personalized experiences at scale. Whether it’s recommending products, tailoring email content, or preemptively addressing potential issues, AI-driven personalization increases customer satisfaction and drives repeat purchases.

Twilio’s research shows that “55% of consumers are willing to spend more for personalized experiences, with customers spending an average of 36% more with brands that personalize engagement.”

How to Automate Customer Experience

Automation can feel cold if done poorly, but the key is to make it feel personal and relevant. This lets teams deliver human-centric experiences while freeing up time for high-value interactions.

Here’s how I’d recommend tackling the process.

1. Start with a thorough understanding of your customer touchpoints.

The first step: Map out your customer’s journey — and include every point where they interact with your brand. (P.S. I’ve previously written how you can use AI when customer journey mapping if you want to learn more.)

Here’s an example of a customer journey template you can use:

When I’ve done this in my own business, I’ve been surprised at how many small touchpoints there are, from the first email inquiry to the follow-up after a project wraps up.

Using a customer journey map, identify where customers are thriving and where they’re running into roadblocks. For example:

• Are there delays in responding to inquiries?
• Are there common questions or complaints that come up repeatedly?
• Are there points where customers seem to drop off entirely?

In an ecommerce company, for example, maybe your customer pain points are around product delivery and communications. Patricia Pavia, a customer experience manager for biom, says that the most helpful thing they’ve automated is an order confirmation and tracking system.

“Once a customer places an order, they receive an instant confirmation email with their order details and estimated delivery time. This not only provides them with immediate clarity but also reduces the need for follow-up emails and questions about shipping status,” she said.

2. Understand your customers’ current experience.

Once you know the touchpoints, the next step is to learn how your customers feel at each stage. Personally, I like to gather feedback whenever I can — whether it’s through surveys, one-on-one conversations, or even just paying attention to what clients mention during our projects.

For a larger team, you might use AI tools to automate this feedback collection, like sending out NPS surveys after key milestones or analyzing the trends in your support tickets.

Here’s what our latest data shows about the effectiveness of certain customer service channels:

Lasandra Barksdale, founder of Kompass Customer Solutions, approaches this through what she calls “experience blueprints” — a sophisticated blend of journey mapping and service blueprinting that reveals how back-office processes affect front-line interactions.

“This approach starts with discovery: uncovering pain points, mapping out friction, and pinpointing where automation can enhance experiences,” she said.

“By working from the outside in, we identify unmet needs from a customer’s perspective, and then go inside out, analyzing internal processes to address those gaps.”

When Barksdale worked with a financial services client, for example, they discovered that while the company wanted to reduce call volume by redirecting customers to their website, the site didn’t actually address the top 10 reasons customers were calling in the first place.

“By helping them identify self-service functionalities and adding a status-tracker feature for more complex requests, we reduced the need for calls and gave customers transparency on their requests’ status. This shift led to happier customers and empowered staff, ultimately showing that call reduction is a customer-centered strategy, not just a cost-cutting measure,” she added.

3. Identify tasks that can be automated.

Not every task needs to be automated, but many repetitive processes are perfect candidates. Here are some examples I’ve seen work well:

• Support ticket routing.
• Answering FAQs.
• Follow-ups and reminders.

In my own business, I’ve thought about automating parts of my onboarding process. For example, sending out a welcome email that includes FAQs, project timelines, or next steps that could save me time while giving clients a consistent experience.

Philippe Mesritz’s team at Community Brands built customer journeys that adapted based on customer actions and CRM data. They created digital engagement points that would trigger specific responses, from sending relevant blog posts to scheduling training videos, all timed to provide maximum value to the customer.

“Through a combination of automated journey orchestration and manual intervention, we were able to engage with thousands of customers that would then gain benefit from the microlearnings,” he said.

4. Leverage AI for personalization at scale.

AI can be really helpful here — and this is especially valuable given that personalization is a top customer expectation in 2025.

AI tools can analyze customer behavior and preferences to deliver hyper-personalized recommendations and experiences. This includes things like:

• Suggesting products or services based on past interactions.
• Sending tailored email content based on what customers have browsed.
• Anticipating needs, like reminding customers of a subscription renewal or suggesting resources to help them get the most out of your product.

5 Tips for Automating the Customer Experience

As you begin to automate your customer experience, you should do it in a way that feels personal, helpful, and true to your brand. The key is to keep the human element at the heart of everything you do.

Here are some practical tips to help you get started and make the most of automation:

1. Keep automation connected to human support.

While AI can handle routine inquiries, there should always be a clear path for customers to escalate issues to a real person when needed. As a customer, this is my biggest frustration with some of the software tools I use.

A chatbot can answer basic questions, but if a customer needs more in-depth support, the chatbot should seamlessly transfer them to a live agent who has all the context from previous interactions.

Pro tip: Try using a tool like HubSpot’s Customer Service Software to see this in action. With Service Hub, you deliver support at scale with AI-powered service, an omni-channel help desk, and 24/7 availability.

2. Make automation feel personal, not robotic.

Nobody likes feeling like they’re talking to a machine. Personalize automated communications by tailoring them to customer data and behavior. Use names, recommend relevant products, and make messages sound natural.

I really loved this email I received from a pizza restaurant in London called Sweet Thursday. It started off with a tailored introduction and a personalized mention about me revisiting the restaurant. It also includes a few select discounts that might interest me. Overall, it feels friendly and helpful — and not like I’m just another email in their CRM system (even if I am!).

3. Let data guide your automation strategy.

Automation thrives on data. By analyzing customer interactions, you can spot patterns, preferences, and pain points to refine your processes.

For example, you could use data to identify which questions come up most frequently in support tickets and build a comprehensive, automated FAQ or chatbot response for those. Or you might track which customers are engaging with your emails and which aren’t, so you can tweak your messaging accordingly.

Pro tip: HubSpot’s CRM software can track customer behavior and segment audiences. This way, you can create more targeted, effective automation strategies that speak to different groups based on their unique needs.

4. Build proactive systems that prevent problems.

The best customer service should aim to prevent issues before they arise. Automation can help you be proactive by sending reminders, tips, and solutions before problems crop up.

For example, if a customer hasn’t logged into your product in a while, you could set up an automated email to check in and offer helpful resources or guides to get them back on track.

I recently signed up to trial Zoho Projects as a project management software for my business. I loved their approach to automating the onboarding process, and it gave me a really positive impression as a customer.

Take a look at the email below — it’s clear they are balancing some level of automation by reaching out and providing resources, but they are also connecting me to a human account manager. I feel like I have a direct line to the product.

Pro tip: Think about where you can automate follow-ups that prevent frustration. If a customer is having a technical issue, an automated troubleshooting guide can provide instant help, reducing their need to reach out.

5. Continue to monitor efficiency and customer satisfaction.

Automation can’t improve customer experience on its own — it needs regular monitoring and refinement.

You should consistently track metrics like response times, ticket resolution rates, and customer satisfaction scores (CSAT) to ensure that your automation efforts are working. At the same time, look at the quality of the customer experience — is your automation actually improving satisfaction, or is it creating frustration?

Pro tip: HubSpot’s Service Hub can be incredibly helpful here, too. For example, you can track your customer health scores, which show areas where you can improve customer retention.

A Better Customer Experience = Happier Customers

CX automation isn’t just for big businesses. Even as a freelancer, I’ve used it to improve efficiency and enhance client relationships. Whether it’s gathering feedback, automating follow-ups, or offering personalized recommendations, automation helps me focus on delivering great work.

With tools like HubSpot, it’s easier than ever to connect everything — from customer data to communications — so I can offer a more personalized experience without getting bogged down in manual tasks.

No matter the size of your business, automating key touchpoints can free up your time, boost your efficiency, and ultimately lead to happier, more loyal customers.

And that’s the kind of growth that really moves your business forward.

You know that feeling when you’re shopping online, and a brand treats you like a stranger, even though you’ve been buying from them for years? As a content marketer diving into the world of customer data integration, I’ve learned this frustrating experience often comes down to one thing: disconnected customer data.

After speaking with industry experts and diving into the research, I’ve discovered just how crucial customer data integration is becoming. Just look at the numbers: The global customer data platform (CDP) market is projected to grow from $7.4 billion in 2024 to $28.2 billion by 2028. Businesses are waking up to the fact that they need better ways to understand their customers.

And it makes sense why. Twilio’s 2023 State of Personalization Report found that when companies get their customer data right and create personalized experiences, consumers spend an average of 38% more. That’s a game-changer for any business.

In this guide, I’ll share what I’ve learned from industry experts about how organizations are successfully implementing CDI, along with data-driven evidence of what works.

Table of Contents

• What is customer data integration?
• Types of Customer Data Integration
• The Customer Data Integration Process
• Customer Data Integration Examples

What is customer data integration?

Customer data integration (CDI) involves consolidating information from different parts of a company into one complete view. As Taylor Brown, COO and Co-founder of Fivetran, a leading data integration platform company, explains:

“When done well, it gives an organization access to reliable, well-organized data that can be used easily for analysis. This helps break down data silos, where information is stuck in separate systems, and ensures the company can get a full picture of its operations and customer interactions.”

When I first started learning about CDI, the idea of breaking down silos resonated with me. I’ve worked on projects where scattered data led to incomplete insights and frustrated teams. CDI essentially takes all the ways customers interact with your business — browsing your website, calling customer service, or making a purchase — and connects the dots to create a clear, actionable picture.

I can’t overstate the importance of having real-time customer data, evidenced by the fact that 78% of data leaders now consider real-time data access a “must-have” for their operations. That stat hit home for me as I realized how vital CDI is — not just for better analytics but for creating the kind of seamless, personalized experiences that customers expect today.

→ Download Now: The Ultimate Guide to Customer Data Platforms [Free Guide]

Types of Customer Data Integration

When I started asking experts about different approaches to customer data integration, I assumed organizations would need to choose just one strategy. But Josh Wolf, Senior Director of Solutions Consulting at Tealium, a leading customer data platform company, helped me realize I was missing the bigger picture.

“When organizations think about managing their customer data, they often wonder if they need to pick just one approach,” Wolf explained. “But here’s the thing: It’s actually much more powerful to use all three major strategies together since they each solve different pieces of the puzzle.”

That insight clicked for me. Instead of viewing these strategies as competing options, I saw how they could work in harmony to create a comprehensive data solution. Let me break them down.

1. Data Consolidation: The “All-In-One-Place” Approach

This approach focuses on centralizing customer data in a single location, enabling organizations to unify their information and act on it more efficiently. Wolf likened it to creating a well-organized library. “Think of it as creating one central ‘home’ for all your customer information,” he says. “This makes it so much easier to run analytics and generate reports since all your data is in one spot. Plus, everyone in the organization can work from the same set of facts, which breaks down data silos.”

The importance of consolidation is evident – especially as businesses prioritize first-party data. According to Tealium, 78% of organizations view first-party data as their most valuable customer information. Companies can provide better customer experiences and streamline operations with a single source of truth.

2. Data Propagation: The “Right-Time, Right-Place” Method

While consolidation focuses on centralization, propagation ensures data gets where it needs to be, exactly when it’s needed. This approach supports real-time data movement, making it invaluable for scenarios requiring high performance, like global operations or customer service.

Wolf highlighted its operational importance: “Propagation involves copying and distributing data to create redundancy, which can be particularly useful in scenarios that require high performance and availability.”

I found this especially compelling when applied to customer service. Imagine a scenario where customer agents have instant access to the latest updates — dramatically improving the quality of support. It’s no wonder nearly 70% of businesses are investing in real-time data capabilities, according to Salesforce’s 2024 State of Marketing report.

3. Data Federation: The “Connect-the-Dots” Solution

Finally, federation allows organizations to query and analyze data stored across multiple systems without moving it. Wolf described it as “being able to search across multiple libraries at once.” This approach is particularly valuable for large organizations managing data in many different systems.

I hadn’t realized how common this need was until I saw Gartner’s 2024 Magic Quadrant for Customer Data Platforms, which found organizations now manage data from an average of 15 systems. Federation shines when you need broad queries without the complexity of full data migration, making it an essential tool for modern enterprises.

Which approach is right for your organization?

So, how do you choose between these approaches? Taylor Brown from Fivetran told me, “The choice between these integration types depends on the specific needs and scale of an organization’s data strategy, whether it’s analytical use, operational efficiency, or exploratory analysis.”

But to maximize impact, you don’t need to pick just one. “To reap the most benefits, it is critical to use all three approaches together,” Wolf told me. “Think of it like this: you might use federation through your data lakehouse tools for broad queries while bringing in specific chunks of legacy data into tools like Tealium when you need them. It’s about being strategic and using each approach where it makes the most sense.”

That advice reframed my understanding of CDI entirely. Instead of viewing these strategies as isolated tools, I now see them as parts of a unified framework that can adapt to the unique needs of any organization.

The Customer Data Integration Process

When I started exploring CDI, it felt like untangling a giant knot. Each thread — whether it was mapping data sources or enabling real-time access — seemed overwhelming on its own, let alone as part of a larger system. But after speaking with experts, I learned that a successful CDI doesn’t have to be daunting. It’s all about approaching the process systematically, balancing technical precision with strategic vision.

Let’s break it down into eight essential steps to help you move from chaos to clarity when managing customer data.

1. Define your strategic goals.

The first question to ask is why you’re building a CDI framework. Josh Wolf from Tealium emphasizes this: “Your main focus should be on improving customer experience, engagement, and conversion rates.” In my experience, when teams align around these goals early, the implementation process runs more smoothly. Wolf recommends:

• Building out strategic audiences.
• Defining clear use cases.
• Creating an implementation roadmap that balances quick wins with long-term value.

Pro tip: ​​Collaborate across teams to prioritize use cases. Wolf suggests ranking them based on value or importance and the time required for implementation — short-term, medium-term, and long-term. This balance ensures progress while keeping the end goal in focus.

2. Map your data sources.

Next comes identifying where your customer data lives. Wolf advises, “Work closely with your implementation teams to nail down exactly what data you need to build customer profiles.”

This involves:

• Pinpointing data sources (e.g., website analytics, CRM, customer support platforms, or social media).
• Determining how the data can be collected.
• Identifying the attributes needed for customer profiles.

Pro tip: I spoke with Arunkumar Thirunagalingam, Senior Manager of Data and Technical Operations at McKesson — a company that manages pharmaceutical distribution and healthcare technology for thousands of hospitals and pharmacies nationwide. Thirunagalingam emphasized the importance of staging and transforming data within a centralized framework to ensure consistency across sources, especially when dealing with external systems that may have varied standards.

3. Design your data architecture.

One lesson I’ve learned from talking to experts is how critical it is to get your architecture right. As Thirunagalingam explains, this step includes:

• Creating a centralized framework for data transformation.
• Establishing Master Data Management processes.
• Building flexibility into your data model.
• Setting up robust data quality checks.

Pro tip: Start implementing advanced deduplication techniques and governance frameworks early to unify disparate records effectively. Thirunagalingam emphasized that small steps here save massive headaches later.

4. Extract and transform data.

Taylor Brown from Fivetran made me realize how much automation can simplify this stage. He advises, “Look for automated data pipeline solutions that provide extract, load, transform (ELT) capabilities, a wide range of connectors, high reliability, and strong performance.”

This ensures:

• Consistent data extraction from various sources.
• Standardized data transformation processes.
• Efficient handling of different data formats.

Pro tip: Brown suggests familiarizing yourself with the logs or APIs of each data source before developing your extraction software. This preparation prevents costly errors during the automation process.

5. Load and integrate.

This step involves ensuring that your data flows seamlessly across all systems. Wolf recommends focusing on:

• Defining and building out your event data layer.
• Setting up connections to marketing and analytics vendors.
• Ensuring proper data flow to all systems for both reporting and action-taking.

Pro tip: Don’t overlook the needs of your vendors. Wolf stresses the importance of ensuring they have everything required to support both reporting and actionable insights.

6. Validate data quality.

No matter how robust your CDI system is, data integrity is critical. Thirunagalingam advises maintaining quality through:

• Comprehensive data quality checks.
• Early detection of inaccuracies.
• Correction of duplicates and inconsistencies.

Pro tip: Thirunagalingam recommends establishing a Master Data Management process to identify a single “master” record for each customer, which helps maintain data integrity across the organization.

7. Enable real-time access.

Real-time data access was a game-changer for me in understanding CDI’s potential. Wolf explained, “Real-time event collection is key — it lets you act on data as it happens.”

This involves:

• Setting up real-time data access for stakeholders.
• Enabling immediate data utilization.
• Creating value through smart audience definitions, even with unknown visitors.

Pro tip: According to Wolf, real-time data capabilities are essential for understanding and responding to customer needs, whether during service interactions or through marketing communications.

8. Maintain and optimize.

Finally, success isn’t just about implementation — it’s about maintenance and iteration.

This ongoing process involves:

• Regular system monitoring.
• Performance optimization.
• Continuous updates to meet evolving business needs.

As Wolf puts it, the key is to “think of it as building the engine while also planning the journey.” Success comes from balancing immediate technical needs with long-term strategic goals.

Pro tip: Brown emphasizes being prepared for potential changes at the source or shifts in downstream requirements that could impact your data models. Planning for flexibility ensures your CDI strategy stays resilient.

Customer Data Integration Examples

It wasn’t until I started diving into real-world examples that I truly understood how transformative customer data integration can be. These stories highlight operational improvements and the game-changing results that CDI can drive — results that impact customer experiences and business growth.

REA Group: Revolutionizing Real Estate With Real-Time Data

One of the most impressive cases I’ve come across is from REA Group, Australia’s leading property platform. Their story highlights how CDI can solve the challenges of managing a dual-sided marketplace, seamlessly serving property seekers and real estate agents.

“As a team, we always strive to make the property experience more seamless for both consumers and real estate agents,” explained Sarah Myers, GM Audience & Marketing at REA Group. “Partnering with Tealium has allowed us to turn consumer data into real-time personalized experiences at scale.”

What really stood out to me were the results:

• 23x higher click-through rates and 10x higher conversion rates from real-time triggered campaigns compared to scheduled campaigns.
• 65 million events processed daily, updating over 40 million data points.
• 7.5 million personalized recommendations delivered every day.
• An eightfold increase in visits from owned channels, generating over $10 million in earned media annually.

Their ability to break down data silos and expand personalization beyond email to omnichannel marketing resonated with me — it’s a challenge so many organizations face.

Saks: From Months to Minutes

Taylor Brown shared a fascinating example of how Saks, a luxury ecommerce retailer, revolutionized its data integration process. “Saks reduced the time to integrate new data sources from months to hours, enabling near real-time updates every five minutes,” Brown explained.

This transformation didn’t just speed things up — it fundamentally improved their operations:

• 5x increase in team productivity.
• Significant cost savings across the company’s systems.
• Real-time KPI reporting across the enterprise, allowing for faster, more informed decision-making.

What I found inspiring about Saks’s journey is how automation allowed their team to shift from firefighting data issues to focusing on strategy and insights.

National Australia Bank: Real-Time Revolution

In industries like banking, where precision and trust are paramount, CDI isn’t optional — it’s critical. National Australia Bank (NAB) faced the challenge of integrating data from traditional banking systems and modern cloud platforms to serve millions of customers better.

According to Brown, their approach focused on three key areas:

• Consolidating customer data from multiple sources.
• Implementing real-time analysis capabilities.
• Delivering more personalized banking services based on unified insights.

For NAB, this wasn’t just about data management but about transforming their customer relationships. The results included improved customer satisfaction scores and a reputation for delivering banking services tailored to individual needs.

La-Z-Boy: From Operational Efficiency to Customer Satisfaction

La-Z-Boy’s story is one I found especially compelling because it illustrates how CDI can impact both operational efficiency and the customer experience. La-Z-Boy modernized its entire data infrastructure and saw remarkable results. According to Fivetran:

• Nearly $6 million saved by aligning supply with demand.
• A 20% improvement in shipping accuracy, which enhanced customer satisfaction and reduced support inquiries.
• A reduction in data availability time from 3 hours to just 10-15 minutes.

What struck me was how La-Z-Boy used CDI to link their supply chain to customer demands. This dual focus on efficiency and experience shows the full potential of well-integrated data.

What This Means for Your Organization: Looking Ahead

Exploring customer data integration has made one thing clear: It’s not just a technical endeavor — it’s a strategic tool for transforming how businesses operate and engage with customers. The examples from REA Group, Saks, La-Z-Boy, and NAB highlight the incredible potential of CDI to deliver measurable results, from operational efficiencies to enhanced customer experiences.

As your organization considers CDI, I recommend keeping these guiding principles in mind:

• Start small, then scale. Focused initiatives can build momentum and set the stage for broader success. For example, La-Z-Boy’s early projects delivered millions in savings and improved customer satisfaction.
• Prioritize data quality. Clean, consistent data is the foundation for everything. Without it, even the most advanced tools will fall short.
• Leverage real-time capabilities. Companies like Saks and REA Group have shown how real-time data access can unlock faster decision-making and more personalized interactions.
• Stay flexible and future-focused. Design systems that can scale and adapt as your organization’s needs evolve.

Looking ahead, the future of CDI lies in balancing innovation with trust. Organizations that prioritize privacy while leveraging data to deliver personalized, scalable experiences will be best positioned to thrive in an increasingly data-driven world.

Have you ever been caught off guard by a boss asking, “Which customers are likely to buy again, and which ones are slipping away?” It’s tough to answer without the right tools. And trust me, saying, “I’m not a mind reader!” doesn’t go over well. Luckily, I found a much better answer: RFM analysis.

RFM stands for Recency, Frequency, and Monetary value — three key metrics that help businesses understand and segment their customers based on buying behavior. To understand how RFM can transform customer relationships, I spoke with several industry experts, each with unique insights that helped me see RFM analysis as more than just numbers — it’s about building lasting customer loyalty.

Analyzing these data points can give you a fuller picture of your customer base, so let’s dig into what RFM means, why it matters, and how to conduct an RFM analysis.

In this article:

• RFM
• What is RFM analysis?
• How RFM Analysis Works
• Benefits of RFM
• How to Calculate RFM
• RFM Analysis Example
• RFM Analysis for Customer Segmentation
• Real-World RFM Analysis Case Studies

• Recency. How recently did the customer make a purchase? If they made a purchase recently, they are likely to make another purchase. However, if the customer hasn’t made a purchase in a while, you may need to nurture them with new promotional offers or even reintroduce your brand.
• Frequency. How often does the customer make purchases? If they purchase frequently, you’ll know their spending habits and preferences, but if they make one purchase and never return, they could be a good candidate for a customer satisfaction survey.
• Monetary Value. How much do your customers spend per purchase? Don’t get too caught up on the number here — all purchases are valuable. However, the first two letters in the RFM acronym can be visualized more clearly by this third component. If they’ve made many recent purchases at a high price point, you’ve got a returning customer who can turn into a brand loyalist.

You can use these three factors of the RFM model to reasonably predict how likely (or unlikely) it is that a customer will re-purchase from a company.

How RFM Analysis Works

On the surface, RFM analysis might seem pretty straightforward — just apply the metrics, and you’ll get results. But like any good strategy, the magic is in the details. Executing an RFM analysis takes a deeper dive. Let’s break down each step.

Pro tip: While RFM analysis can transform your customer relationships, you need to pay close attention to data privacy. With 75% of consumers considering data privacy a human right, it’s vital to implement RFM analysis responsibly.

Step 1: Collect and prepare data.

Start by gathering and preparing the right customer data. In my research, I’ve discovered that this foundational step often makes or breaks the entire analysis. As Ani Ghazaryan, Head of Content & Marketing at Neptune.AI, a platform that helps machine learning teams manage and track their experiments more effectively, told me, “Getting clean, consistent data required significant upfront effort, especially as customer data was scattered across multiple systems.”

Successful RFM analysis starts with collecting essential data points, such as:

• Purchase dates for each customer.
• Number of purchases per customer.
• Total spend per customer.
• Customer identifiers (e.g., email, customer ID).

Cache Merrill, Chief Product Officer at Zibtek, a custom software development company that helps startups to Fortune 500 businesses build tailored software solutions, shared his technical approach:

“We combine several tools specific to the client’s data and CRM requirements. Some of the core tools include SQL-based data lounge for data management, custom scripts for threshold analysis, and visualization tools for assessing the performance of segments like Power BI or Tableau.”

Pro tip: According to Twilio’s research, only 51% of consumers trust brands with data security. Start with solid privacy practices and data governance to build that oh-so-integral trust.

Step 2: Create your scoring framework.

Before you start scoring customers, you need to set a framework that makes sense for your business model. This means defining what “recent,” “frequent,” and “high-value” mean in your context. “We determine these predominantly based on the data distribution, most often by quantile splitting each RFM parameter for upper and lower-tier clients,” Merrill explains. “For example, the top 25% in Recency would get the highest score in that category, and so on.”

Key decisions include:

• Scoring scale (typically 1-5 for each component).
• Periods for recency.
• Purchase frequency thresholds.
• Monetary value ranges.

Pro tip: Ronan Walsh, Managing Director of Digital Trawler, a B2B SaaS digital marketing agency, recommends having at least six to 12 months of customer data to establish meaningful scoring thresholds.

Step 3: Set up automation.

Modern RFM analysis isn’t a one-time manual process — it needs to be dynamic and automated. At Neptune.AI, Ghazaryan’s team found success by integrating their analysis with their existing tech stack: “We used Python for analysis and visualization, which allowed us to really dig into the patterns of customer behavior.”

Automation should handle daily score updates, segment transitions, communications triggers, and performance tracking. This ongoing process keeps RFM analysis fresh and in tune with the latest customer behavior, allowing businesses to quickly adjust to any shift that comes up.

Pro tip: According to HubSpot’s research, 76% of consumers are concerned with how companies use their personal data. Make sure your automated systems support privacy compliance.

Step 4: Develop a segmentation strategy.

In my interviews with industry experts, I’ve found that successful segmentation isn’t just about grouping numbers — it’s about understanding customer behavior patterns. With your scoring framework and automation in place, it’s time to create meaningful customer segments. Walsh’s team at Digital Trawler achieved a 15% increase in customer retention by “identifying those with a high likelihood of churning and proactively targeting them.”

Common segments include:

• VIP customers (high scores across all categories).
• At-risk customers (declining recency scores).
• Lost customers (low scores across the board).
• Potential loyalists (high recency but lower frequency).

Pro tip: Neptune.AI’s team succeeded by “recalibrating scoring to reflect both revenue and activity level so that we didn’t overlook loyal users in lower tiers.”

Step 5: Implement targeted actions.

The final step is turning your analysis into action. Making targeted moves based on your analysis can help you spend your marketing budget more wisely, use customer service resources better, create promotions that really hit home, and take full advantage of automation. It’s a good idea to regularly check in on your segmentation criteria to ensure your strategies keep up with what customers want and need.

Pro tip: Walsh achieved the best results by personalizing offers based on recent engagement data, which helped move customers to premium tiers.

Benefits of RFM

You might be thinking, “This sounds like a lot of work.” And you’re right — it is. But in my conversations with experts and analysis of real implementations, I’ve discovered that while setting up RFM takes some initial effort, the clarity and insights it provides make you wonder how you ever made marketing decisions without it. Let’s explore these benefits, backed by data and expert insights.

1. Increased Revenue and ROI

The most compelling benefit I’ve found is the direct impact on revenue. When done right, RFM analysis helps you target the right customers with the right offers at the right time. In a recent episode of the “Send It” podcast about retention marketing, Jimmy Kim, CEO of Royal Prospect and retention marketing expert, highlights a common mistake: treating all customers the same regardless of their spending patterns.

“Why am I sending the same offers to a $20 customer that I would give my $100 customer?” he asks. This targeted approach pays off. According to Twilio’s research, businesses report that customers spend 38% more on average when their experience is personalized through proper segmentation.

Merrill shared that his team boosted campaign performance by 25% in just three months by using RFM analysis to effectively target high-value customer segments.

Pro tip: I’ve learned from the experts that starting with your highest-value segments first often provides the quickest ROI.

2. Higher Customer Retention

RFM analysis is particularly effective for keeping valuable customers from slipping away. As Kim explains, building loyalty with frequent buyers by recognizing their continued purchases and rewarding them with targeted offers can significantly enhance customer relationships and boost retention.

Ghazaryan’s team at Neptune.AI saw a 15% reduction in churn by identifying and proactively engaging with at-risk customers before they left.

Pro tip: Use RFM scores as an early warning system. Declining scores often signal churn risk before other metrics show problems.

3. More Effective Marketing Campaigns

One benefit that surprised me was how much more efficient marketing becomes with RFM insights. “After segmenting based on RFM scores, our engagement rates jumped by over 20%,” Ghazaryan told me, particularly in their high-recency, high-frequency customer group.

RFM analysis enables more targeted messaging, better timing of communications, more relevant offers, and reduced marketing waste.

Pro tip: Test your RFM-based campaigns against your regular campaigns to see where to focus your efforts.

4. Enhanced Customer Experience

In today’s market, I’ve found that personalization isn’t just nice to have — it’s expected. Salesforce’s research shows that 73% of customers expect companies to understand their unique needs and expectations. RFM analysis helps deliver on this expectation.

Interestingly, 56% of consumers become repeat buyers after receiving personalized experiences. Better customer understanding leads directly to better business results.

Pro tip: Use RFM insights to adjust not just your marketing but also your customer service approach. High-value customers often warrant premium support options.

5. Better Resource Allocation

Finally, I’ve discovered that RFM analysis helps businesses make smarter decisions about where to invest their time and resources. Merrill’s team reviews the segmentation criteria every quarter to better target customers as their behavior changes, ensuring their efforts focus on the most promising opportunities.

Allocating resources more effectively means optimizing marketing spend, enhancing customer service efforts, targeting promotions more precisely, and leveraging automation where it makes the most sense. Regularly tracking segment responses to different investments allows for continuous refinement and better overall efficiency.

Pro tip: Track which segments respond best to different types of investments and continually refine your resource allocation.

How to Calculate RFM

Step 1: RFM Scoring

Start by classifying customers by a numerical ranking for each category: recency, frequency, and monetary value. The ideal customer earns the highest score in each of these categories. This scoring is crucial to determine which customers are most valuable.

For example, you might evaluate recency on a scale of 1-5, with a score of 5 meaning the customer made a purchase within the last month, while a score of 1 means their last purchase was over a year ago. RFM scoring helps businesses pinpoint and prioritize high-value customers to target.

Step 2: Run an RFM analysis.

Once each customer has been assigned a score for each category, you can calculate the combined RFM score by summing the individual values for Recency, Frequency, and Monetary. This combined score allows you to segment customers into groups based on their likelihood of making future purchases.

Step 3: Crystalize customer communications.

RFM analysis offers a snapshot of which customers have purchased most recently, most often, and spent the most money. However, it’s important not to bombard high-score customers with too many offers. Instead, use their high RFM score to learn about their preferences and fine-tune your approach.

Pro tip: High RFM scores should serve as a guide for deepening relationships — focus on learning from these customers and enhancing their experience rather than overwhelming them with sales pitches.

RFM Analysis Example

To better understand RFM, I’ll walk us through an example of how RFM analysis can be applied in practice. Let’s say I’m running an ecommerce store called Ruff Riders that sells dog supplies and accessories. Here’s how I would use RFM analysis to better understand Ruff Riders’ customers.

Step 1: Gathering Data

I’ll collect a year’s worth of customer purchase data, including customer IDs, purchase dates, order values, and the number of orders per customer. I can use a simple spreadsheet for this analysis or a more sophisticated tool like a customer data platform or CRM system. Data accuracy is critical here — any inconsistencies would directly impact the analysis results, so I need to get this step right.

Step 2: Calculating RFM Scores

Next, I’ll score each customer based on Recency, Frequency, and Monetary value, using a scale from 1 to 5:

• Recency. Customers who purchased within the last 30 days scored a 5, while those who purchased over 180 days ago scored a 1.
• Frequency. Customers who made 12 or more purchases in a year scored a 5, while those with just one purchase received a score of 1.
• Monetary Value. Customers who spent over $500 scored a 5, while those spending less than $50 scored a 1.

Assigning these scores allows me to generate an overall RFM score for each customer, which helps determine who my high-value customers are and who needs more attention.

Step 3: Identifying Key Segments

With the RFM scores calculated, I can segment customers into different groups:

• Champions (555). These are the most engaged, highest-spending customers. I can focus on nurturing their loyalty through exclusive offers and early access to new products.
• Loyal Customers (4xx, 5xx). These customers buy frequently but don’t spend as much as champions. To keep them engaged, I developed loyalty programs and offered referral incentives.
• At-Risk Customers (3×1, 3×2). These customers purchased frequently in the past but haven’t made any recent purchases. I can create win-back campaigns to re-engage them with personalized offers.

Step 4: Implementing Targeted Strategies

For each segment, I’ll tailor specific strategies to drive engagement:

• Champions. I can offer early access to new products, personalized thank-you messages, and VIP customer service.
• Loyal Customers. I can launch a loyalty rewards program with discounts and special referral incentives.
• At-Risk Customers. I can send reactivation campaigns, including exclusive discounts and product promotions aligned with their previous purchases.

This hands-on RFM analysis shows the value of segmenting customers based on their buying behavior, which allowed me to focus on building stronger relationships and driving growth effectively.

Pro tip: Start simple. Initially, I tried to create too many segments, making it difficult to manage. Focusing on a few key groups that align with your capabilities is much more effective.

RFM Analysis for Customer Segmentation

Once you’ve calculated RFM scores for your customers, the fun part begins! Use these insights to create customer segments to help you tailor your marketing and customer service strategies to each group’s specific needs and behaviors.

1. Define your scoring criteria.

Start by defining your RFM scoring system based on your business model. This helps you identify the most important criteria for each customer group and ensures consistency.

2. Create customer segments.

Based on RFM scores, define key customer segments, such as:

• VIP Customers. High scores in Recency, Frequency, and Monetary value. These customers are your most valuable and should receive special perks, personalized communication, and priority support.
• At-Risk Customers. High Monetary scores but declining Recency and Frequency. These customers may need re-engagement campaigns to renew their interest and loyalty.
• New Customers. High Recency scores but lower Frequency and Monetary scores. Focus on building a strong relationship and providing onboarding support.
• Loyal Customers. High Frequency scores. Offer loyalty rewards to encourage continued engagement.

Merrill highlighted how regularly reviewing segmentation criteria helps better target customers as their behavior evolves, ensuring strategies remain effective. Ghazaryan also emphasized how recalibrating scoring helped ensure they always reflected each customer’s true value.

3. Integrate customer service strategies.

Customer service plays a big role in maintaining these relationships. For example:

• Provide VIP customers with dedicated support channels or priority service to keep them happy.
• Set up alerts for your support team to proactively reach out if at-risk customers haven’t engaged lately.
• Offer additional onboarding support to help new customers get the most value from their initial purchase.

4. Develop targeted actions.

Once segments are created, develop targeted strategies for each group. For VIP customers, consider providing exclusive offers and personalized messages to reinforce their value to your business. For at-risk customers, implement re-engagement campaigns that specifically address their needs and encourage them to reconnect with your brand.

Using these tailored approaches allows you to craft marketing and customer service strategies that resonate with each audience. This way, your efforts are more effective, leading to better retention and stronger customer relationships.

Real-World RFM Analysis Case Studies

To demonstrate the power of RFM analysis, let’s explore how four different companies transformed their customer engagement and business performance using this approach. Each story highlights unique challenges and the strategic insights that drove their success.

A SaaS company increases retention by 15%.

Ronan Walsh from Digital Trawler shared the story of a mid-sized B2B SaaS provider with around 2,000 active customers. Like many companies, they faced a pressing challenge: improving customer retention and maximizing lifetime value. Over six months, they implemented an RFM analysis strategy to tackle these goals.

The turning point was personalizing offers based on customers’ recent engagement data. By doing so, they were able to encourage customers to upgrade to premium subscription tiers, driving up their average order value (AOV) without inflating acquisition costs.

“By personalizing offers based on recent engagement data, we encouraged users to move up to premium subscription tiers, driving higher AOV,” explained Walsh. This focused strategy resulted in a 15% increase in retention and a 10% boost in AOV, illustrating how precise, data-driven actions can make a difference.

Ecommerce fashion retailer revitalizes engagement.

A fashion ecommerce brand with significant repeat purchase potential set out to deepen its connection with high-value customers and drive repeat purchases. They adopted RFM analysis for a three-month campaign designed to target their most valuable buyers.

By focusing on those who had made recent purchases, they crafted campaigns that resonated with this high-value segment. According to Cache Merrill from Zibtek, “We concentrated on high-value buyers who had made a purchase very recently. Customized RFM cutoffs helped us target segments with high revenue potential while identifying at-risk customers.”

This strategic focus led to a 25% boost in campaign performance, with noticeable gains starting within just 6-8 weeks and major successes by the end of the quarter.

Neptune.AI boosts user engagement.

Neptune.AI, a SaaS company providing tools for machine learning teams, was facing a challenge in keeping users engaged. To tackle this, they combined RFM analysis with their CRM to focus on improving user engagement.

Their success really came from creating targeted educational content and webinars for users in the “high-recency, high-frequency” group. Ani Ghazaryan mentioned that this approach allowed them to boost user engagement and cut down on churn. As a result, engagement rates shot up by 20%, churn dropped by 15%, and customer lifetime value increased by 10%.

The company also rolled out targeted reactivation campaigns to reconnect with users in the “low-recency, high-value” segment, showcasing the latest features of their platform.

Retail re-engagement campaign revives inactive customers.

A retail business was dealing with a typical issue: A bunch of customers had gone quiet and hadn’t engaged in six to 12 months. Wanting to win their customers back, the company kicked off a four-month re-engagement campaign using RFM analysis. It pinpointed 1,500 dormant customers and reached out with personalized incentives and content to spark their interest again.

The outcome was pretty impressive — 22% of those customers returned, making a tangible difference in their quarterly revenue. This scenario really highlights how important it is to get to know your customer segments well and create offers that really resonate with them.

Pro tip: While these case studies show impressive results, remember that each business requires different scoring criteria and segmentation strategies. Adapting RFM analysis to your specific business model and customer behavior patterns is key.

An RFM Analysis to Grow Your Customer Base

When I first started diving into RFM analysis, I wasn’t entirely sure what to expect. But it quickly became apparent that it’s more than just a bunch of numbers. Conducting an RFM analysis is all about figuring out how much of your revenue comes from loyal, repeat customers versus new ones and finding ways to keep those loyal customers happy. It’s about seeing where things might be falling short and how to better meet customer needs so that they keep returning for more.

Hearing from the experts showed me just how adaptable RFM analysis is — whether it’s used to drive engagement in a tech company or boost retention in retail, the principles work everywhere.

What really stood out to me is that while RFM analysis might look like a data exercise, it’s really about building relationships. It’s about turning those customer scores into personalized actions that make people feel valued and understood. The more you understand your customers, the better you can serve them. The magic of RFM lies in combining data-driven insights with a genuine human touch. It’s that mix of personalization and proactive engagement that turns customers into loyal fans.

Editor’s note: This article was originally published in October 2018 and has since been updated for comprehensiveness.

Making sense of customer data in today’s digital landscape often feels like piecing together evidence in a crime scene. In fact, when our team started exploring composable CDPs as a solution, I found myself at a whiteboard drawing circles and lines between all our different data sources and looking suspiciously like something from an episode of Law & Order.

Traditional customer data platforms (CDPs) promised to help make sense of it all, but these legacy solutions often fall short as they try to do everything at once. Sometimes, you need a solution that lets you pick and choose exactly what you need, which is where composable CDPs come in. It’s like upgrading from a Swiss Army knife to a fully customizable tool belt.

Whether your customer data is scattered across a dozen systems or you’re just starting to think about better ways to manage it, this guide will help you understand if a composable CDP might be the solution you’re looking for.

Table of Contents

• What is a Composable CDP?
• Advantages of a Composable CDP
• How Legacy CDPs Work
• Composable CDP vs. Traditional CDP
• Composable CDP Use Cases
• CDP Implementation Examples

After my whiteboard revelation about our scattered data sources, I learned that a composable CDP takes a fundamentally different approach to managing customer data.

The name “composable” comes from its ability to let you “compose,” or build, exactly the customer data platform solution you need. As Arvind Rongala, CEO at Edstellar, an AI-powered skills management platform, puts it: “Composable CDPs give organizations the most freedom because they can add only the parts they need, like data storage, identity resolution, analytics, and involvement, based on their own needs.”

Source

I think of it like building with LEGO blocks rather than buying a pre-built toy. I can choose which pieces to use and how to put them together.

Robin Grochol, vice president of product management at Twilio Segment, explains the core purpose: “Businesses need a clean and consistent view of each customer across every function, from marketing to ecommerce to customer support and more.”

A composable CDP includes several key elements:

• Direct integration with your existing data warehouse.
• Modular components you can mix and match based on your needs.
• Flexible data modeling capabilities.
• Tools for activating your data across marketing channels.

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How Legacy CDPs Work

Traditional customer data platforms, or legacy CDPs, have been around for years, acting as the go-to solution for companies trying to wrangle their customer data. If a composable CDP is like building with LEGOs, a traditional CDP is more like buying a pre-built playhouse — it comes with everything included, whether you need it or not.

Every legacy CDP vendor offers several bundled features, including:

• Data Collection. CDPs provide proprietary code you can run on your website/app to capture behavioral data or user events like page views, purchases, or signups.
• Storage and Modeling. Built-in identity resolution features help you connect data from various sources to create single customer profiles.
• Data Activation. You can define and build custom audiences using your behavioral data for downstream marketing use cases.

Because CDPs integrate with various SaaS applications and databases, you can sync your customer data and audiences to these downstream systems.

As Brendan Fortune, director of product at Customer.io, points out, “Traditional CDPs provide an all-in-one suite. They aim not only to ingest your data but also to clean, govern, and analyze it.”

The fundamental problem that CDPs solve — helping you manage and activate your data at scale from a single source of truth — isn’t going away anytime soon. In fact, CDP demand continues to increase.

However, with the rapid adoption of modern cloud data warehouses like Snowflake, Redshift, BigQuery, and Databricks, many organizations now realize it no longer makes sense to maintain an architecture that creates two conflicting sources of truth: one in the CDP and one in the data warehouse.

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With data and marketing teams working off two independent sources of truth for customer data, several problems are introduced. These include inconsistent data between BI and operational tools, inflated storage costs, security concerns, and an inability to activate all available customer data.

That’s why organizations like Warner Music Group and Chime are choosing to implement an architecture that enables them to activate data directly from a single source of truth: the cloud data warehouse. This shift has given rise to what we now know as the composable CDP.

To understand which approach might work best for your organization, I talked to experts from leading CDP providers and companies that have made the switch. Here’s what I learned about how these two approaches compare.

Composable CDP vs. Traditional CDP

When I started asking industry experts about the key differences between these two approaches, I discovered it’s not just about features but fundamentally different philosophies in handling customer data.

Alex Schlee, founder and CEO of Anamap, broke it down clearly for me. “The key difference between traditional CDPs and composable CDPs is the ability for companies to define their own data structure and use their own data warehouse as the resting place for the data,” Schlee explains. “Traditional CDPs have a separate database with a specific format that needs to be accommodated to correctly store events.”

Here’s what each approach brings to the table.

Traditional CDP

• Lives separate from your data warehouse.
• Requires duplicate data storage.
• Fixed data models and schemas.
• Longer implementation time (6-12 months).
• Higher total cost of ownership.

Composable CDP

• Integrates with your existing infrastructure.
• No duplicate data storage.
• Flexible data modeling.
• Faster implementation (typically 2-3 months).
• Pay only for what you need.

Must-Have Features When Evaluating Any CDP

Twilio Segment’s Robin Grochol sees CDPs as more than just data tools — they’re enterprise-wide solutions. As she explains, “Instead of each business function operating in its own silo, with a unique set of tools and an incomplete view of the customer’s experience, a CDP can act like an enterprise service, creating customer profiles, journeys, and predictions that drive use cases across the business.”

With this enterprise-wide impact in mind, Grochol outlines the critical features to look for in any CDP solution:

• Data Collection. Can the CDP collect data from anywhere, including all the tools in the data stack?
• Data Governance. Can the CDP ensure data is clean, consistent, and compliant so it is trusted across the business?
• Data Unification. Can the CDP create unified customer profiles at scale that provide a complete view of the customer?
• AI Capabilities. Can the CDP predict, recommend, and generate journeys, audiences, and other customer insights with AI?
• Data Activation. Can the CDP activate customer data anywhere, not only for marketing teams but for any part of the business?

Pro Tips for CDP Evaluation

When evaluating CDPs, I gathered some crucial advice from industry experts. Brendan Fortune from Customer.io suggests starting with a simple audit.

“Identify in what departments your customer data lives today. If there are more than three departments with data sets you intend to unify, CDPs are a must. As is a full-time Project or Program Manager!” Fortune shared.

He also recommends asking vendors about their best customers and why. You should be able to see your company fitting that profile.

Sebastian Gierlinger, vice president of engineering at Storyblok, emphasizes two additional critical areas:

• Map your integration landscape first. “Map out exactly what tools you would like to connect to estimate what can be covered by pre-built integrations and what needs to be part of an implementation project.”
• Prioritize security and scalability. “Definitely always ask about security and scalability. There is nothing more problematic than a vendor who is struggling with these two topics.”

So when should you choose one over the other? Gierlinger strongly advocates for composable solutions when building modern tech stacks.

“If you are building a modern stack and you are not bound to any obligations already, I would always opt for using the composable solution no matter if it is CDP, ecommerce, CMS, or any other component of your infrastructure,” he explains. “Composable systems allow you to already be prepared for future developments like new distribution channels, new frontend technologies, or additional requirements.”

However, Customer.io’s Brendan Fortune offers an important counterpoint: “If you don’t have a team dedicated to consolidating, cleaning, governing, and analyzing your company’s data, you’re better off with a traditional CDP.”

Pro tip: Before making your decision, ask yourself these key questions:

• Do you already have a modern data warehouse?
• Does your team have data engineering resources?
• How quickly do you need to implement your CDP?
• What’s your budget for both implementation and ongoing costs?

Before You Consider a Composable CDP

Sebastian Gierlinger from Storyblok emphasizes the importance of having essential elements in place first: “Make sure that you have systems in place that produce relevant data. The best CDP cannot fix a broken process or an unreliable product. Once the basics (web, product, CRM) are working, a CDP can be the boost your business needs.”

After learning about both approaches, I was curious about what makes organizations choose a composable CDP over a traditional one. The answers from industry experts revealed several compelling benefits backed by real results.

As mentioned above, Twilio Segment’s Grochol emphasizes that a composable CDP breaks data silos by creating customer profiles, journeys, and predictions that can be used across all departments.

Compared to a legacy CDP, there are many benefits to this approach. Here are the key advantages that stood out in my research.

Flexibility

Legacy CDPs have very rigid modeling capabilities, locking you into a strict user and account-based model. Composable CDPs break free from these limitations by supporting multiple entity types and related models.

“When companies are choosing between standard and composable CDPs, they should think about how flexible they need to be,” notes Arvind Rongala of Edstellar. “A composable CDP is the best choice if you expect to have complicated data ecosystems or a lot of component updates.”

Data Availability

Legacy CDPs only focus on event-level clickstream data, creating a fragmented view of your customer. Composable CDPs have access to any and all of the data living in your data warehouse — not just clickstream events (e.g., data science models).

Improved Data Accessibility

Since composable CDPs can integrate with a wide variety of existing systems, they improve data accessibility across departments.

“Data can be directly accessible in a data warehouse or BI tool, which makes it easier for data and business analysts to derive insights from it,” explains Sebastian Gierlinger from Storyblok. “A traditional CDP is often accessed through a single interface and would not allow such flexibility.”

The shift toward composable architecture brings up another important consideration. “The single biggest benefit to composable CDPs is avoiding vendor lock-in,” Alex Schlee of Anamap points out. “When the same data structure can be used across any composable CDP vendor, it makes your company data more portable.”

Enhanced Privacy Compliance

Gierlinger also highlights a crucial advantage, “Composable CDPs allow businesses to keep sensitive data in localized storage systems, which can be critical for complying with data residency requirements.” This flexibility ensures companies can meet specific compliance needs and adjust quickly as requirements change.

Cost

With a legacy CDP, you pay twice to store and process the data that you already have within your own warehouse. With a composable CDP, you can use your existing data investments rather than purchasing another off-the-shelf tool.

Implementation Agility

Composable CDPs enable an iterative approach rather than one massive project. As Gierlinger notes, “Instead of executing one big project that will show results once everything is up and running, you will have multiple smaller projects that show partial results immediately.”

Time-to-Value

Legacy CDPs can take over a year to implement, and that’s not even accounting for the onboarding time it takes for your teams to learn how to use the tool. The modularity of a composable CDP allows you to start activating your data immediately with the tools your teams are already familiar with.

Security

Legacy CDPs force you to store data outside of your own cloud infrastructure, giving you little control over what happens to it. With a composable CDP, your data is never stored outside of your existing data infrastructure, giving you full governance and control over how it’s managed.

Composable CDP Use Cases

Here are a few ways composable CDPs help businesses create hyper-personalized omnichannel campaigns and workflows that drive better results.

Profile Enrichment

Using a composable CDP, you can access any and all of the custom data models living in your warehouse — such as lifetime value, last login date, active users, active tickets, features enabled, lead score, likelihood to purchase, etc.

You can then sync that data directly to objects and fields that you can leverage in your CRM for personalization and segmentation.

Audiences

Let’s say your marketing team wants to target a list of shopping cart abandoners with a special coupon to encourage them to check out. Or maybe your product team wants to send an email to inform inactive users of a new feature.

In either case, a composable CDP can easily deliver the data from your data warehouse to your CRM.

Workflows and Sequences

It’s easier for your teams to build more comprehensive workflows and sequences using the audiences that your data team defined in your warehouse.

For example, you can automatically enroll users into marketing campaigns based on their audience type or the attributes that you’ve outlined in your CRM. You can also use these attributes to create different branches of the workflows based on user activity, engagement, or attributes.

This has huge implications from a sales standpoint because you can use workflows to route new leads to individual sales reps so they can take action faster.

CDP Implementation Examples

When researching composable CDPs, I found it helpful to look at how different organizations are actually using them in the real world. Here are some of the most interesting examples I discovered.

Streamlining Marketing Operations

LegalZoom offers an excellent example of combining modern data warehouse infrastructure with CDP capabilities. As Twilio Segment’s Robin Grochol shares:

“LegalZoom centralized their data in Snowflake to gain a unified view of business operations and customer behavior. With Segment integrated on top of Snowflake, marketing teams can self-serve, creating audience segments and personalized customer journeys without needing technical assistance.”

Check out this video to learn more.

Boosting Sales Performance

Sebastian Gierlinger from Storyblok describes how a composable CDP transformed its sales operations.

“We introduced a composable CDP with a custom presentation layer for the sales team, which led to a huge increase in upsell since the team was able to identify active customers that are operating close to the next plan level.”

Real-Time Customer Engagement

A fascinating example comes from Brendan Fortune at Customer.io, who shares how CDP architecture choices impact user experience. When a large design software company wanted to send personalized messages to users trying new features, they had to weigh their options carefully.

While a traditional CDP could trigger messages within seconds through direct API streams, a composable CDP pulling from their data warehouse would take a few minutes — an important consideration for real-time engagement scenarios.

HubSpot + Hightouch: A Closer Look at Composable CDP Integration

Let me walk you through a detailed example of how a composable CDP works with your CRM. HubSpot’s CRM platform offers a great illustration of these capabilities in action.

As a platform that helps businesses manage customer interactions, automate marketing workflows, and optimize sales funnels, HubSpot becomes even more powerful when integrated with a composable CDP like Hightouch.

This tool allows data and marketing teams to sync the valuable insights from their data warehouse to a CRM.

Source

Pro tip: Want to streamline your customer data management? Start with a solid foundation using HubSpot’s CRM platform.

The Bottom Line: The Future of CDPs

Through my research and conversations with industry experts, I’ve learned that CDPs are evolving far beyond their original role as data collection tools.

As Robin Grochol explains, the CDP landscape used to be only about collecting and moving data. “Now it’s about data activation,” she said. “CDPs today build customer profiles, create audiences and journeys, and recommend the next best product or action using AI.”

Looking ahead, Brendan Fortune predicts an even bigger transformation. “I expect to see CDPs evolve into customer experience suites,” Fortune said. “Rather than just moving data around, they will act on that data in ways that customers see, whether that’s an email, an in-app message, or part of your software’s user experience.”

Fortune believes that CDPs who don’t evolve will become true commodities. “In that scenario, the CDP industry as we know it today will become far less valuable,” said Fortune. “Transforming data from one source to multiple destinations will become a table-stakes capability competing only on price.”

Whether you choose a traditional or composable CDP ultimately depends on your organization’s specific needs, technical resources, and long-term data strategy. But one thing is clear: In an era where customer data drives business success, having the right CDP architecture isn’t just a technical decision — it’s a strategic must-have.

Editor’s note: This post was originally published in May 2023 and has been updated for comprehensiveness.