The definition of a ‘good customer experience’ today is nowhere as simple or straightforward as it was just a few decades ago (when assessing customer sentiment was carried out through a few phone surveys, for example).
The modern consumer is multifaceted and complex, reacting to a wide range of factors: economic, social, political, and beyond, and they are more demanding than ever before.
Thus, Hire Digital provides insights into the latest customer experience trends in 2023.
Why customers are changing rapidly
Accenture’s survey reveals that 95 per cent of C-level executives believe that customers are changing faster than their businesses can keep up with. They think that their digital transformation efforts are just keeping them afloat rather than driving their growth.
So, what exactly drives these consumers to change? Here are some factors that are causing rapid changes in consumer behavior:
Looming inflation and unpredictable markets
72 per cent of consumers state that external factors like inflation are impacting them now more than before. Meanwhile, Gartner’s research reveals that more than half of consumers feel like they have less disposable income and savings this year.
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Thus, their spending behavior has not only changed in such a way that they purchased less but in finding ways to make smarter purchases. For example, half of millennials and Gen Z are using digital tools to track coupons/discounts as a means to combat inflation.
The hybrid lifestyle
COVID-19 has opened doors for digital transformation. With a lot more products and services available online, people have adapted to the hybrid lifestyle of making purchases both online and in-person. According to Prosper Insights & Analytics, 33 per cent of adults are shopping in stores less.
Social and environmental responsibility
A Harris poll revealed that more than two-thirds of Americans are now more concerned about climate change and that they expect their peers to adjust their purchasing habits accordingly. This is supported by the aforementioned Accenture research, which indicated that 72 per cent of consumers are more impacted now by external forces – climate change being one of them.
This leads us to our second insight into company ethics.
Company ethics influences buying decisions
CX Network reported that customer experience practitioners observed a higher level of sustainability awareness from consumers. A lot of customers now consider companies’ level of environmental sustainability and morals in their purchasing decisions. An Aflac research supports this by showing almost eight out of 10 of consumers believe companies that stay true to their ethics/values outperform others in their field.
Meanwhile, 92 per cent of millennials are more likely to buy products from ethical companies, and over four-fifths of these consumers believe ethical brands outperform similar companies that lack a commitment to ethical principles. Thus, they want organisations they engage with to not only answer their needs but also add value to the world overall.
Customers are looking for more meaningful interactions
A Conduent report revealed that customers crave more meaningful interactions with brands. Eight out of 10 respondents would likely purchase products from the same brand if they had a great customer experience on a digital channel.
Here are factors that contribute to a meaningful customer experience:
Personalisation
Personalisation has been a marketing buzzword for a reason. A Gartner study pointed that 86 per cent of B2B and 72 per cent of B2C consumers expect companies to know their information during an interaction.
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Thus, it’s imperative to integrate mass data available for optimal personalisation. Some organisations fail to analyse all data sources and mostly rely on customer feedback.
However, strategies for optimisation and personalisation should be taken from integrated sources of demographics, operational data, financial data, purchase history, and more to truly understand the multi-dimensional needs of consumers. This also enables an organisation’s customer experience to evolve and keep up with consumer changes.
Convenience
Gartner’s research discovered that consumers’ value for convenience has been at an all-time high over the past 12 years.
Moreover, a Hyken ACA research shows that:
- Three-fourths of customers would pay more for a convenient experience, and would switch companies if they found out a competitor provided more convenience
- 68 per cent would return to a brand if the customer experience were convenient
- 80 per cent would likely recommend a brand or product if it provides a convenient customer experience
The banking industry poses a good example of both adding a customer-centric integration design and adhering to convenience. In the recent decade, the banks immensely transformed with the current CX trends – opening a bank account used to take a painstaking process in-person, and now you can do so online within seconds.
Omnichannel
A McKinsey study revealed that organisations intend to increase digital engagement by 1.5x in 2024, and one of the top areas for investment is improving omnichannel via tech. Omnichannel is seen to make businesses more agile.
In fact, several surveys reported that consumers already expect an omnichannel experience; it’s no longer an edge over the competition but a must-have for organisations.
Also Read: How should you engage customers in a rapidly changing market?
However, a unified omnichannel experience is something you can have the edge over your competitors. As consumers are approaching organisations across all touchpoints, companies should ensure that all channels provide a cohesive messaging and seamless experience.
AI augmentation in customer experience
Harvard Business Review discovered that a combined effort from employees and artificial intelligence (AI) enables companies to achieve significant improvements.
Likewise, Gartner states that AI augmentation enables organisations to make smarter data-driven decisions. They predict that by 2025, organisations will shift 75 per cent of their operational work from production to more strategic activities if they use AI across marketing functions.
Using AI to optimise content and journey mapping leads to better segmentation and personalisation. Customer data retrieved from AI can be used to drive more agile responses.
Gartner lists down the main impact of AI augmentation:
- Applications of AI (i.e. automation, chatbots) are set to improve KPIs of timeliness, quality, and consistency.
- Machine learning and analytics can transform metrics into operational success.
- AI management requires greater focus to upskill and empower existing talent and end-to-end consideration of diversity, equity, and inclusion.
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This article was first published on February 20, 2023
The post What makes a great customer experience? appeared first on e27.