What is customer perception?

Customer perception is how customers view a company or product based on their experiences and interactions. Customer perception can be affected by the customer’s own personal opinions, beliefs, and values.

Companies strive to create a positive customer perception to build customer loyalty and trust. Sometimes, it can be a huge challenge for companies. As rightly said by Marlanges Simar, Senior Director of Customer Experience at Walgreens, in Clootrack's 102 CX Study,

“The top-of-mind challenges that brands should be sure to manage include: - inevitable retrofitting understanding of customer perception to what the brand wants to be vs. what the brand actually means to its customers."

The entire process of customer perception starts when a consumer sees or gets information about a particular product. The customer collects information about a product and interprets the information to make a meaningful image of a particular product. 

When customers see advertisements, promotions, customer reviews, social media feedback, etc., relating to a product, they develop an impression of the product. This process continues until the consumer builds an opinion about the product. 

For example, Avon uses a pink color with white and black accents. This color predominantly attracts women, while men feel alienated by pink color. The customer perception is built based on the colors used in the logo.

Example 2: A popular blog Techylist changed their theme & their traffic spiked by 15% on their top traffic posts like GTA San Andreas Apk.

However, if a product is trying to attract both men and women, using just pink might not be a good idea.

Why is Customer Perception Important?

A happy customer is one who is satisfied with the experience that he has with a product or a service. Consumer perception can make or break your brand. 

When customers have a pleasant experience of getting their products delivered on time, they form a perception. Getting the products that were as described in the product description also creates a positive customer perception. When customers experience great after-sale service, it will develop a positive opinion of the brand.

But when customers have a bad experience, such as broken products, no returns, no after-sales service, etc., the customers build a negative perception of the brand.

When companies work towards strengthening the bond between customers and the company, customer perception improves, giving way to a better competitive edge.

Customer perception is also important to determine the kind of image a brand wants to build.

For example, when a retail clothing store displays clothes on crowded racks using low-quality plastic hangers, customers get a perception that it is a low-quality brand.

But when the same clothes are presented well with back-lit mannequins, neatly arranged, good quality attractive hangers, etc., the customers build a different perception of the brand.

Customer perception or consumer perception plays a major role in buying behavior. Hence companies are going the extra mile to create a pleasant and happy customer experience for their customers. Companies are ready to spend money and effort to influence customer perception and drive profitable consumer behavior.

What are the factors influencing customer perception?

Customer perception can be influenced by external factors, some of which are listed below:

1. Personal experience

Customer perception is highly influenced by the personal experience that a customer has while buying and using a particular product. If the quality, customer service, price, logo, color, discounts, etc., could make an excellent impression on the customers' minds, they would build a good perception of the brand. But if they do not enjoy the experience with the brand, it will leave an everlasting impression.

2. Advertising

Customers get to see the products first through advertisements and therefore become one of the biggest factors that influence customer perception. The advertisements and campaigns that a company runs will help to build a positive customer perception.

3. Influencers

People generally buy things when another person has tried and tested them. Such people who have bought it first and tried the product become influencers. When people hear about a great product that the influencer has tried out, it will influence them, person, to buy it and test it out, as the recommendation has come from a known person whom they trust.

4. Customer reviews

Many people look into customer reviews before buying a product. This shows that customer reviews are an important factor in defining customer perception. If the consumers see that a product has fewer stars, it means that the product does not have good customer reviews. The impression that it creates in the consumer’s mind is negative.

5. Social media

Social media has become the strongest medium to manage customer perception. When a social media audience gets consistent communication regarding a product, the users build an image of the product. Social media can be used to post content, images, videos, etc., which helps to build the kind of perception intended by the company.

Strategies to improve customer perception from lead generation to loyalty

Understanding customer perception is the first step, but continuously shaping, improving, and measuring customer perception is essential for long-term success.

From the moment a potential customer becomes aware of your brand to their experience as a loyal customer, businesses need a strategic approach to influence and measure customer impression at every stage.

Here's how to improve customer perception:

1) Offer clear, transparent messaging

First impressions matter! Your messaging should communicate the value of your product and service without overwhelming potential customers with jargon or complex details.

Be clear about how your product solves a real problem for boosting brand loyalty.

2) Leverage social proof and testimonials 

Potential customers are far more likely to trust your brand if they see others vouching for it.

Display testimonials, case studies, and user-generated content prominently. Studies show that customers tend to believe reviews and peer recommendations more than traditional advertising.

For example, Airbnb effectively uses host and guest stories to build credibility and trust among new users.

3) Create tailored experiences

Use customer data to personalize communication and understand consumer behavior. Prospects appreciate brands that understand their needs and preferences.

For instance, Amazon excels at personalizing recommendations based on past searches and purchases, making customers feel like the platform "knows" them.

4) Provide value before purchase

Don't wait until after a sale to deliver value. Offer educational content, webinars, or free tools that help potential customers, regardless of whether they convert immediately.

HubSpot, for example, provides extensive free resources that position the company as a trusted authority while nurturing leads for repeat business over time.

5) Simplify the onboarding process

A complicated or frustrating sign-up process can negatively impact customer perception and increase churn before the customer even gets started. Optimize the user experience (UX) by ensuring smooth and intuitive onboarding. 

6) Proactive customer support

Be readily available to address concerns throughout the customer journey. Offering live chat, FAQ sections, or interactive demos can ease potential friction. For example, Shopify provides a robust onboarding process with 24/7 customer support, ensuring users can easily set up their online stores without delay.

7) Enhance post-purchase customer experience

• Deliver on your promises: Post-purchase experiences shape long-term perceptions. Ensure customers get the value you promised during the lead phase. Brands like Apple are known for delivering high-quality products and services that consistently meet or exceed customer expectations.

• Provide continuous education and support: Keep customers engaged by offering ongoing resources, product updates, and educational content that enhances their experience. For instance, Adobe regularly updates its Creative Cloud suite while providing tutorials and webinars to help users maximize the software's potential.

8) Build customer loyalty through long-term engagement

• Reward loyal customers: Implement loyalty programs that recognize and reward repeat customers. Starbucks' rewards program, for example, offers points, free drinks, and exclusive benefits that boost customer retention and make customers feel valued.

• Collect and act on customer feedback: Proactively ask customer feedback and, more importantly, act on it. When customers see their suggestions implemented, it enhances their perception of your brand as one that listens and adapts.

9) Communicate product enhancements

Customers prefer brands that are continually improving. Regularly update features based on customer feedback and market trends and keep customers informed about these updates.

10) Ensure consistency across channels

Customer perception can be heavily influenced by how consistent your brand is across different touchpoints. Whether it's customer service, social media, or in-person interactions, ensure that customers receive the same level of care and quality.

Brands like Apple are known for their consistent customer service, both online and offline, which has helped them build a strong, positive reputation.

How to measure customer perception?

Customer perception is not a mystery!

Brands can monitor and measure perception by investing a little time and using smart tools and techniques.

Customer perception, when measured, provides a stream of valuable consumer insights. When a brand conducts a deep dive and measures customer perception,  It unlocks behind-the-scenes of how customers look at your brand. You can see how customers engage with and react to your brand.

So how do companies monitor and measure consumer perception when they’re looking at it from behind the scenes?

Here’s how: 

1. Analyzing website traffic:

Your website has hidden truths about how customers perceive your brand. Analyzing your website traffic gives insights into customer perception. But it is important to look for clues in the right places. Free tools like Google Analytics can be used to analyze your website. Start by looking into basic details:

• How many customers typed your company URL in the search bar?

• Who has clicked an email that you had sent?

• Are there any customers who downloaded your documents?

Analyze the trend of user behavior on your website by answering these questions. It allows you to identify if there is any change over time in brand perception.

2. Online customer reviews:

72% of customers won’t take action until they read reviews. 

You realize how big an impact customer reviews can have on customer perception. Good reviews can create a positive customer perception. Therefore, companies resort to customer reviews to measure customer perception. 

There are a lot of product review sites like G2Crowd, Yelp, AppExchange, Angie’s List, Salesforce, etc., that have a huge database of customer feedback. Your customers are potentially looking at the reviews before buying your products. 

Set up Google alerts that can notify you when reviews are posted. In this way, you can immediately know what customers are talking about your product and measure the positive or negative perception that is created in the minds of the potential customers.

3. Analyzing social media conversations:

This is one of the most effective methods to measure customer perception. Social media conversations are a great start to seeing what people say about your brand. Consumers of products and services are all over the internet and use social media to express their experiences, liking, or hatred toward a brand. 

When businesses or brands start tracking brand mentions, it can lead to a collection of honest feedback. It will give insights into what customers feel about your brand, opportunities to manage your brand reputation, and an understanding of how consumers interact with your brand’s products or services.

For example, Clootrack analyzed social media conversations of the top US hotels. Through a detailed analysis of 40,338 traveler and guest conversations, Clootrack created a list of the customer perception drivers that visitors considered before booking a hotel room. Social media conversations are an excellent means of measuring customer perceptions. 

Top KPIs to track customer perception

Businesses must continuously measure customer perception to improve it effectively through every customer journey stage.

By utilizing targeted metrics and tools, you can understand how leads, prospects, and loyal customers view your brand and identify areas for improvement.

Here are some key metrics and tools tailored to different stages of the customer journey:

1. Measuring perception during lead attraction

• Brand awareness metrics:

Track how well your brand is known among your target audience. Tools like Google Analytics and social media analytics can provide insight into website traffic, ad performance, and social reach.

• Social listening tools:

Platforms like Hootsuite and Brandwatch allow you to monitor mentions and conversations about your brand across social media, identifying emerging trends and sentiments among potential leads.

2. Measuring perception during lead nurturing

• Lead engagement metrics

Track open rates, click-through rates, and interaction times for personalized email campaigns, webinars, and resources to gauge the effectiveness of your nurturing efforts.

• Customer sentiment analysis tools

Use AI-driven tools like Clootrack to analyze customer feedback from surveys, emails, and social media. This can help identify common themes and sentiments, allowing you to adjust your approach to nurturing leads.

3. Measuring perception during conversion

• Customer effort score (CES)

CES measures how easily customers interact with your company, from the sign-up process to resolving issues. Reducing effort improves customer perception at the critical point of conversion.

• Net promoter score (NPS)

NPS is valuable here for understanding new customers' satisfaction after their first purchase or engagement with your product.

4. Measuring post-purchase experience

• Customer satisfaction score (CSAT)

CSAT allows you to gauge customer satisfaction with specific products or interactions. It can be used after a product purchase or after customer service interactions to assess how well the company meets expectations.

• Retention rate

This metric highlights how well you are keeping customers after their initial purchase, a key indicator of ongoing customer satisfaction.

5. Long-term engagement and loyalty metrics

• Customer lifetime value (CLTV):

CLTV helps you understand the long-term value of a customer and informs you how much you should invest in retaining them. It's a critical metric for assessing the effectiveness of loyalty programs and post-purchase engagement efforts.

• Referral metrics

Track the number of new leads generated through referrals, as a strong referral rate is an indicator of positive customer perception and loyalty. 

Perception is reality!! 

You may know it or not, but your customers already have a perception of your brand.  But the most important is whether it works in your favor or against you. 

Do you know how customers perceive your brand today? If you measure it and become aware of how your brand is perceived, you can work towards improving it or fixing it for a better tomorrow.

Read Next: AI CX Analytics vs. traditional business surveys- what's best for you?