The concept of customer experience (CX) has continued to evolve into an indispensable asset that holds the potential to shape the future of organizations. Understanding the transformative power of the next generation of customer experience (next-gen CX) is paramount and should be held as the highest priority for business stakeholders.
The imminent shift promises not only to enhance customer satisfaction but also to unlock substantial business value. A recent Salesforce report cements the importance of CX, stating 54% of consumers believe businesses need to transform the way they engage with customers, proving engagement is more important than ever.
From hyper-personalization and seamless omni-channel experiences, to real-time engagement and a commitment to sustainability and data security, this new frontier in CX offers a vast landscape of opportunities that can drive revenue growth, foster customer loyalty, optimize operational efficiency, and fortify your brand's reputation. Embracing this revolution is more than a strategic choice, it's a pathway to enduring success in an increasingly customer-centric business environment.
Who better to share a quote from on this topic than the founder of one of the most customer-centric companies in the world, Jeff Bezos, Amazon
"There are many ways to center a business. You can be competitor focused, you can be product focused, you can be technology focused, you can be business model focused, and there are more. But in my view, obsessive customer focus is by far the most protective of day one vitality."
Jeff Bezos, Amazon
Unlocking Key Business Objectives Through Next-Gen CX
The next era of CX holds immense potential for businesses with PwC reporting that 73% of customers say CX is the number one thing they consider when deciding whether to purchase from a company. Here we explore some of the pathways to realizing this value;
01. Hyper-personalization
Objective brief
The next generation of CX is all about hyper-personalization as businesses use advanced data analytics, AI, and machine learning to understand individual customer preferences and behaviors in real-time. This level of personalization allows organizations to precisely deliver what the customer wants, when they want it, increasing revenue while minimizing customer churn.
What’s this like in practice?
Starbucks delivers hyper-personalized experiences on its mobile app, making it a personal favorite for customers. They have customers’ usual order ready before they reach the outlet, sending an “order ready” notification to users mobiles. Even the reward points are catered to the drinks and snacks customers prefer.
02. Seamless omnichannel experience
Objective brief
In today's multichannel world, the next-gen CX ensures a harmonious customer journey across various touchpoints, fostering engagement, brand consistency, and enhanced customer retention. It's about being there for your customers when and where they need you.
What’s this like in practice?
Ikea boasts over 75 years of loyal customers and patronage as the world-renowned furniture brand keeps reinventing itself. Not just to keep up with customer expectations but also to define them with an integrated customer experience. Cafes and recreation areas inside their sprawling showrooms make customers feel at home. But it doesn’t stop there. Ikea updated its mobile app with augmented reality so that customers could see how the furniture would fit into their home spaces. The AR also makes furniture recommendations based on the look and feel of your home.
03. Real-time engagement
Objective brief
Instant, real-time communication is becoming a hallmark of superior CX. Chatbots, live chat, and AI-driven customer support can resolve issues and answer questions immediately. Real-time engagement not only heightens customer satisfaction but also serves as a real-time feedback mechanism, allowing businesses to capitalize on positive customer sentiments and address negative experiences promptly.
What’s this like in practice?
Expedia, one of the world’s most popular travel-planning websites and apps, has integrated real-time conversational AI assistance into its services. This means that rather than searching for flights, hotels or destinations, customers can plan their vacations as if they are chatting with a friendly, knowledgeable travel agent in that exact moment in time.
04. Predictive analytics
Objective brief
Harnessing the power of data and predictive analytics can help organizations anticipate customer needs and market trends. By using AI and machine learning to predict customer behaviors and demands, organizations can proactively adjust sales and marketing strategies, minimizing the risk of overstocking or understocking products and stay ahead of competitors.
What’s this like in practice?
Netflix have been utilising A/B testing and audience analytics to create era-defining entertainment that is proven to keep customers loyal. By investing heavily in algorithms and audience analytics, Netflix has been able to offer an on-demand service that’s unique for each viewer. As their director of global communications explains, there are now ‘33 million different versions of Netflix.’
05. Sustainability and social responsibility
Objective brief
An increasing number of customers value businesses that show a commitment to sustainability and social responsibility. The next-gen CX involves integrating these values into your business strategy, enhancing brand image, attracting a broader customer base, and leading to cost savings as more sustainable practices are implemented.
What’s this like in practice?
Johnson & Johnson have focused on reducing their impact on the planet for three decades. Their initiatives range from leveraging the power of the wind to providing safe water to communities around the world. Their purchase of a privately-owned energy supplier in the Texas Panhandle allowed the company to reduce pollution while providing a renewable, economical alternative to electricity. The company continues to seek out renewable energy options with the goal of having 100% of its energy needs from renewable sources by 2025.
06. Data security and privacy
Objective brief
With increasing concerns about data security and privacy, the next generation of CX must prioritize these areas. Demonstrating a commitment to protecting customer data builds trust and can be a unique selling point. A data breach can be catastrophic, not only in terms of customer trust but also financially.
What’s this like in practice?
Apple has long been a champion of user privacy. The organization encrypts all data stored on its devices and has a strict policy against collecting and sharing user data without explicit consent. Apple is not only dedicated to privacy by design, protection by default, and increasing consumer trust, but it’s also focusing on how to educate consumers about how companies are using their data and what options consumers have for protecting it. Apple rolled out a five-minute video, A Day in the Life of an Average Person’s Data, to teach consumers how data companies are trying to collect personal information and how iPhone can help protect people.
07. Proactive customer feedback
Objective brief
The next generation of CX involves actively seeking and acting on customer feedback. This goes beyond mere surveys – it means analyzing social media sentiment, monitoring online reviews, and using AI to interpret unstructured data. By listening to what your customers are saying, you can continuously adapt and enhance your products and services to meet their evolving needs.
What’s this like in practice?
A Virgin Atlantic’s customer wrote a witty, disgruntled review about the quality of food served on their Heathrow to Mumbai flight and much to everyone’s surprise, that passenger ended up on Virgin Atlantic’s food advisory board. This was only possible because, instead of giving out a standardized, robotic response, Richard Branson sought the help of the passenger and F&B experts to improve their menu across different flight routes, reflecting a commitment to real, meaningful improvements and a dedication to delivering an exceptional in-flight dining experience.
“The key is to set realistic customer expectations, and then not to just meet them, but to exceed them—preferably in unexpected and helpful ways.”
Richard Branson, Founder of the Virgin Group
Revolutionizing Customer Insights in the Next Generation of CX
To harness the full potential of the next-gen CX, centralizing customer data is paramount. This involves creating a Single Customer View (SCV) which is often enabled by employing a Customer Data Platform (CDP). There are several ways to approach CDPs, but fundamentally it describes the way an organization collects and structures data from various sources to create a unified, 360-degree view of individual customers. A SCV is the holy grail of CX, enabling companies to achieve a 23% increase in cross-channel conversion rates alone (Gartner). SCV enables you to gather, unify, and manage all customer data from various sources, both online and offline. This includes data from website interactions, email marketing, mobile apps, point-of-sale systems, and even call center interactions.
This centralization of data sets the stage for a seamless integration with another formidable tool that emerges in the next-gen CX - Data Clean Rooms. These virtual environments allow you to analyze and share customer data securely, even with partners or third-party entities. They facilitate collaboration without compromising data privacy, making it a game-changer in today's privacy-conscious world. With Data Clean Rooms, you can tap into a wealth of data, including customer preferences, behaviors, and demographics, to gain deeper insights into your customers. This secure, privacy-compliant data exchange is essential for developing personalized marketing strategies and improving customer engagement, with Gartner reporting that 80% of advertisers with media budgets of $1 billion or more will be using data clean rooms by 2023.
To conclude...
In the ever-shifting landscape of business, the next generation of customer experience emerges as a powerful force, offering transformative possibilities and immense value. Embracing this CX revolution is not merely a strategic choice; it's a roadmap to sustained success in an era where customers take centre stage. By adopting these practices, businesses stand to amplify customer satisfaction, foster brand loyalty, optimize operations, and bolster their reputation. The CX of tomorrow is a journey towards enhanced customer engagement, increased revenue, and lasting customer relationships.
"In the age of the next-gen customer experience, businesses must recognize that success is measured not only in profits but in the profound relationships forged with customers. The future belongs to those who understand that the customer is not just the king; they are the heart, soul, and compass of your journey."
Jon Tippell, founder and managing director of Redkite
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Contributors
Sonia Patel
Sonia is a lead data consultant with over 6 year’s experience and specialises within the business analytics and emerging technology space.
As a business analyst, Sonia provides critical thinking, problem-solving, and decision-making to each task she is faced with. She works with clients to understand their current organisational situation, identify future needs and create solutions to help meet clients’ strategic goals.
Sonia also plays a key role in forming data strategy around generative AI, real-time data and composable Customer Data Platforms, simplifying these complex new technologies into easy to understand use cases for c-suite level employees.