All Things CX - January Edition: 4 resolutions to unlock the full CX potential in 2023

I hope you’ve had a healthy and successful new year so far!?

The turn of the year not only feels like a new beginning. It provides an ideal opportunity to set out on new paths. It heightens the anticipation of new insights, new encounters, and new goals.?

And of course, every year is ushered in with a wave of new resolutions and trends. But which ones will stick in the long run?

I believe that 2023 will be the year of the CX: consumers are expressing a desire for exceptional experiences more than ever before. Companies should see this as an opportunity to exceed consumers expectations and earn their loyalty.?

But excelling in customer experience is like the number one New Year's resolution we've all made at one time or another: "I'm going to eat healthier. I will exercise more. I will build more muscle (or lose weight)." Don't we all know it??

Yet, good resolutions in customer experience are a goal worth striving for, but one that also requires a commitment to specific actions to see long-term progress.?

With that in mind, I would like to give you four resolutions with tangible actions on how you can ensure better customer experiences little by little in 2023.

Resolution number 1: Engaging in real dialogues

Consumers increasingly value the human dimension. They expect more than one-way interactions with brands. They want to engage in a real dialogue.?

“Over the last five years, we have seen a paradigm shift from the customer support perspective – from ticketing-based support to conversational support. There's a new wave of users and customers who want to engage with brands on a channel of their choice, with context personalisation, and a lot of insight and relevance," says?Karthik Rajaram?in his?conversation?with?Sahiba Ratra.

The fundamental importance of personal contact with customers is also explained by Tom Goodmanson in the Forbes article?“7 Customer-Experience-Related Predictions For 2023“: “As we go into 2023, we’re seeing more and more consumers expecting an omnichannel experience, yet they crave human-to-human interactions for customer service. They expect a real, live, human agent to be available when they want one.”

So it comes as no surprise that dialogue-oriented customer experiences are becoming the new standard. The concept of conversational commerce is increasingly gaining importance in e-commerce. A trend that, in my opinion, will bring about long-term changes in customer interaction.

Lans Crauer even argues in his?noteworthy article?that conversational commerce is the future of CX: “Retail brands that fail to provide the top-notch customer experience that's vital to success are at risk of losing valuable customers to their competitors. Conversational commerce is the future of retail customer experience. It delivers the mobile-friendly, on-demand support that today’s shoppers desire without sacrificing the personalized experience that's received in-store."

Resolution number 2: Playing for the long run

Interacting with customers on an equal footing is the key to building long-lasting customer relationships, and these relationships need to be nurtured. After all, it takes far more time to acquire a new customer than it does to retain an existing one. At the same time, greater efforts are required to retain existing customers over time.

With this in mind, companies are focusing more intensely on?customer retention?this year, explains?Sai Koppala: “With mounting concerns of an economic recession, in 2023, I think we’ll see a doubling down by brands on engaging their existing customer base. That said, loyalty is getting harder to come by because consumers have a seemingly infinite number of choices today. In response, marketers are seeking out new ways to build lasting emotional connections with customers.”

Gartner?even states that customer satisfaction is not necessarily a predictor of future loyalty. Customers form the basis for future decisions by drawing conclusions from each experience with a brand. That is why 20 per cent of customers who rated themselves "satisfied" would switch to a competitor at any time if the customer journey did not run smoothly.

After years of putting up with fragmented experiences and average customer service, customers are justifiably demanding outstanding, personalised experiences. Marketers need to focus more on delivering a seamless customer experience.

To increase customer satisfaction while delivering seamless customer experiences, three aspects need to be considered: the right product or content, the right timing, and the right communication channels. True omnichannel experiences are therefore crucial today. Omnichannel experiences significantly increase the quality of the customer experience and thus customer satisfaction. A current study by?REVE Chat?reveals that omnichannel strategies retain 89 per cent of customers.

Similarly, an overwhelming majority of consumers are increasingly choosing brands that share their values and concerns. In fact,?68 per cent of consumers?say they are more likely to stay loyal to a brand if they share the same values, according to?Ellie Hanson. Almost 70 per cent now take sustainability into account when considering products or services. Young consumers in particular tend to be loyal towards brands that have environmentally sustainable practices and values.

Companies are well advised to demonstrate their commitment to the environment and to involve customers in sustainability efforts – and to play for the long haul. This commitment will not only have a positive impact on climate goals, but will also nurture shared values in customer relationships. This is because customer loyalty will essentially be directed to the brands that make a real commitment beyond transactions.

Resolution number 3: Add a personal touch

For a long-term customer relationship, a deep understanding of the customer and their personal motivations is of great importance. Because a successful exchange means aligning oneself with the other party.

This requires active listening and a high willingness to learn. Only then can I place the wishes and needs of the customer at the centre and be customer-oriented at all times. Insufficient customer awareness makes it very difficult to provide customers with what they need and when they need it. Consequently, it is not possible to satisfy or delight customers.

The authors of the book "The Customer-Base Audit",?Peter Fader,?Bruce G.S. Hardie?and?Michael Ross?point out that new data strategies are absolutely necessary for a deep customer understanding:?“Many firms recognize the need to think differently about using customer data, but they do not know where to start. They are often trapped in an old-fashioned view of their business, structured around products or channels.”

Resolution number?4: Don’t cut back on your?budget

As the previous resolutions make clear, investing in customer experiences is no longer just a strategic advantage, but an integral part of the customer relationship.?

In fact, Acquia's?“Customer Experience Trends”?report shows that 58 percent of companies surveyed place a high priority on improving customer relationships. Similarly, 56 percent of companies are preparing to optimise their CX strategies.

Likewise, this?McGraw-Hill study?highlights that companies that maintain their marketing budget during a recession emerge stronger. Furthermore, it is advisable to continue marketing efforts even during an economic downturn to ensure ROI, especially in the long run. For example, companies that proactively promoted during the economic downturn achieved 256 per cent higher sales than those that discontinued their promotional activities. Even when the consumer sentiment is clouded, consumers continue to interact with brands. When awareness is low during a recession, customers turn to companies that are still accessible on their preferred channels.??

Despite the current period of economic volatility, the importance of technologies that improve the customer experience remains quite high. According to Metrigy's global “2023 Technology Spending Outlook” study, 65.1 per cent of companies plan to increase their spending on CX technologies by an average of 24 per cent.??

I see cutting back on CX projects and investments as more of a hindrance than a help, but I also agree with?Greg Blazewicz?about making the most of investments: “Martech doesn’t need to be costly but it must be results-focused and transparent when it comes to ROI. Customer data is the new gold, and using insights to do more with less should now be the aim of all marketers.”

Making the most of data to improve the customer experience ensures that budgets are used efficiently. This in turn drives greater customer understanding, contributing to customer loyalty.?

We will be witnessing big shifts in customer loyalty this year. That’s why it is important to engage more with customers, to understand their needs and preferences and to incorporate these findings into the customer journey. Only then can a trusting, sustainable customer relationship be built that can survive tumultuous times.

However, I would like to emphasise that it is not about implementing everything at the same time. It is about trying out new strategies, constantly learning from them and steadily improving. In doing so, it is essential to stay in contact with the customers and to organically develop the relationship. Otherwise, even the best New Year's resolutions are quickly forgotten.

I am certainly looking forward to discussions with you. What have you planned on improving in your companies this year?