Customer Experience: The Evolution and The Revolution
Customer Experience is set to overtake price and product as the key brand differentiator by 2020.
Many companies already recognise the importance of customer experience for customer retention and business growth. Over time they have invested heavily in their CX programmes with 58% of businesses aiming to be CX leaders within three years. MarketsandMarkets forecast the global customer experience management (CEM) market to grow from $3.77 billion in 2014 to $8.39 billion by 2019, the customer analytics market from $1,623.2 million to $4,054.9 million in the same time period.
In recent years, we have witnessed a huge transformation in customer experience and the evolution is set to continue in years to come. Companies now opt for continuous, real-time insight rather than lengthy surveys, have opened up many more new communication channels for their customers to interact, but also must now manage and integrate ever-growing volumes of data.
Today’s Customer Experience analytics programmes are substantial investments to businesses and therefore demand ROI. 72% of major organisations are already reporting their customer satisfaction at board-level. The problem CX managers face is how to demonstrate ROI. Almost 50% of customer experience professionals surveyed in a study by Forrester Research and Watermark Consulting, felt their organisations were either “ineffective” or “very ineffective” in measuring the ROI of customer experience.
Statistics tell us that even small improvements in customer experience lead to substantial financial returns. The Journal of Marketing published findings showing that a 1 point increase in customer satisfaction reduces variance in future cash flows by 4%, directly impacting stock valuation. But how do you correlate CX data with the relevant organisational and financial figures to prove that this applies to your organisation?
The answer to these problems lies in an evolutionary concept called ‘Customer Intelligence’ (CI), which provides businesses with a single view of each customer, correlating CX data with all other relevant customer information and financial value to draw out actionable insights and prove ROI.
With that in mind, we are now amid a customer experience revolution. Gartner predicts that by 2022, approximately 65 percent of all customer service interactions will be digital or text-based versus the phone. With today’s customers being much more demanding and much less brand-loyal than they once were, companies across industries are beginning to recognize CX as a key competitive differentiator and are making sweeping changes to keep up.
Customer Intelligence is gained from an omnichannel platform which has the ability to aggregate data from both in-person and online interactions to build a 360-degree view of a customer — one that will help agents or consultants identify preferences and anticipate needs. This also includes the ability to integrate the omnichannel customer feedback with information from across your organisation e.g. financial or operational, in order to understand the state of CX for the business.
As we look to the future of Customer Experience, it’s important for these digital-first companies to also identify how customers want to connect, rather than deciding for them. It shows customers that a brand is listening to them — which builds trust and goes a long way when introducing new ways to communicate, whether that be with a chatbot, a new mobile app or, a virtual dressing room!
Find out how Syngro Eye combines omnichannel feedback to provide customer insight that drives profitable action.