Focus on Experience: Edition 2

Welcome to Focus on Experience newsletter and its second issue! On the second Wednesday of every month, while we try to bring you the latest developments and highlights from the field of experience management, don't forget to follow us closely and experience us in order not to miss the content we will create special for that newsletter or to see and read it first hand!

In this newsletter, we will examine some of the most important resources, reports, studies and best practices in the world of CX and EX, as well as some of the most prominent topics and developments in the world of CX and EX, primarily customer and employee experience. It is a time-consuming effort to find what makes sense in all this cacophony and what is important for your business. That's why Focus on Experience aims to bring together the latest developments in the field of experience and to provide concise, straightforward information

February's newsletter focuses on the role and importance of personalization in customer experience, why and how large and large-scale companies such as Netflix, Amazon and Airbnb use personalization for their customers, how nudge theory, a behavioural science theory, plays a role in customer experience and personalization, and how companies position it in their products and services, the role and importance of design thinking in customer experience, strategic suggestions for personalising customer experience, the latest developments in artificial intelligence studies in the field of experience, and what you can learn from Valentine's Day in your communication with your customers, and a few suggestions we have compiled for you this month and a blog titled "Why Personalised Customer Experience Matters? " in the second edition of this blog post.

So let's dive into the world of experience.

Why Does Personalised Customer Experience Matter?

Today we are going to talk about one of the most prominent areas of today's experience world: Personalised customer experience.?

Imagine, you need a product or service, and as a result of your research, you enter a website or an application and you feel as if they know you very well. Products that are in line with your preferences and expectations are highlighted, personalised recommendations are offered, and moreover, there is a hologram that reflects you from the inside to help you find what you are looking for. How would you feel? You would probably go back to that website or app again, right?

This is where personalised customer experience comes to the fore. Businesses can make customers feel special by tailoring their products and services to their preferences and behaviours

For more information on what customer experience is, how the customer experience journey has evolved from past to present, how the customer interacts with the brand, how design thinking is reflected in global brands, and how Amazon and Netflix use personalization, you can check out this month's blog post..

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???Experience Express

A Brief History of Netflix Personalization

Netflix introduced itself as a DVD-by-mail service in 1998 and launched its first website with less than 1,000 DVDs. Since its founding, Netflix has embraced a customer-oriented approach, employing numerous metrics to measure personalised experiences and experiment with algorithm-based operations.

Using these metrics and algorithms, Netflix has continuously added features to give its customers a unique movie-watching experience. While some of these features have endured to this day, others were discontinued due to not meeting expectations.

The most valuable lesson Netflix has learned is that "increased personalization experiences lead to a parallel increase in customer retention rates." This means that, generally, the more algorithms they implement, the better their results.

To learn more about Netflix's journey to personalise the customer experience, you can read the article "A Brief History of Netflix Personalization" by Gibson Biddle on Medium .

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Design Thinking in Customer Experience

When you design a new product or want to take your service to another dimension, the way to put your customers, users, or buyers at the centre of the process and adapt the design processes to this is to integrate design thinking into your customer experience management process. Unless companies empathise with their current and potential customers and deeply understand their real needs, they may have problems improving the experience and ensuring brand stickiness.

For companies such as Nordstrom, Starbucks, Nike, Oral-B, GE Healthcare, Microsoft, IBM, Netflix, and Airbnb, which come from different markets and sectors, focusing on customer experience with a design thinking approach is part of their business processes and even their roadmap. So, what is the role of design thinking in improving customer experience?

?f you want to learn more about how these companies have implemented and use design thinking in their companies, you can read the blog post titled "Design Thinking in Customer Experience."

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Airbnb Case Study: How To Reduce Churn With Personalization

User experience (UX) refers to the design process that takes into account the expectations and wishes of the user to customise and/or personalise the product or service. On the UX side, brands that offer personalised products often see parallel increases in customer retention rates.

So, how does Airbnb, a marketplace for short and long-term homestays and experiences, use this? Where do they have mistakes, and how can they provide a more personalised and integrated experience to retain customers and discourage them from using other booking platforms? Additionally, what's the psychological background behind all this UX design? How extensively does Airbnb need to redesign their experience and involve customers in the process to see better results instead of relying solely on filtering?

To learn more about nudging, location personalization, usage-based personalization, and Airbnb's many personalization and experience design processes, check out the case study "Airbnb Case Study: How To Reduce Churn With Personalization" by Growth.Design

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Nudge Your Customers Toward Better Choices

Default options, created for certain steps within your website or mobile app, cater to the product or service you offer. These options can include mail confirmations or additional services added during the purchase process. But what if you could nudge your customers towards better choices, ultimately improving your customer experience scores?

Nudging, in fact, finds significant use in various aspects of customer experience, including default options. Sometimes, when detailed information about customer preferences and expectations isn't available, "mass defaults" are used. Conversely, "personalised defaults" come into play when you have readily available data about your existing customers' preferences. Depending on your relationship stage with existing customers, either mass or personalised defaults may be more appropriate. At the same time, personalised settings can be built upon mass defaults, allowing you to cater to new customers efficiently and maximise their benefit.

Remember, how you present these choices significantly impacts your customers' decision-making and purchasing process. To delve deeper, check out the article "Nudge Your Customers Toward Better Choices" by Daniel Goldstein, MD , @Eric Johnson, Andreas Herrmann , and Mark Heitmann in Harvard Business Review.

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How Does Visual Design Pave the Way for Memorable User Experiences?

One of the most crucial factors in creating a memorable user experience (UX) is how you present your existing product or service in digital environments. When we first encounter any website, we process visual content before textual content. Consequently, designs that fail to capture our attention visually can dampen our interest in learning more about the product or service.

Therefore, the initial visual design and the emotional connection established with the customer are critical in determining whether they will continue exploring or not. Visual designs that adhere to the principles of clarity, consistency, accessibility, inclusivity, responsiveness, and adaptability will enhance user satisfaction and deliver an unforgettable experience for both your existing and potential customers.

If you want to delve deeper into how visual design shapes UX and its importance in the digital landscape, check out the article "How Does Visual Design Pave the Way for Memorable User Experiences?" by Lindsey Benson in News Anyway.

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3 resolutions for creating the best possible CX in 2024

According to a study, customers' experiences with a brand and its products or services significantly impact their perception of that brand. With this in mind, customer experience (CX) has become more crucial than ever for companies seeking sustainable growth and financial success.

However, the CX maturity level varies greatly among businesses. While some companies haven't even established a dedicated CX department, others have integrated CX into their organisational culture and created dedicated teams.

So, what are the key decisions companies need to make to create the best possible customer experience in 2024? Several areas require development, from understanding your customers' core needs and priorities to thinking beyond personalization and integrating artificial intelligence (AI) experiments into the CX journey.

To learn more about CX management tactics, the value of personalization beyond a one-size-fits-all approach, and the strategic integration of AI, check out the article "3 resolutions for creating the best possible CX in 2024" by Lisa Lacy in Campaign US.

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One year of ChatGPT – how has it changed customer experience?

Since ChatGPT's launch, it has been a game-changer, even rewriting the rules in several industries. Its impact extends beyond mere productivity, transforming how businesses approach customer experience (CX). Research by Indusface places call centres and customer service eighth in industries most impacted by ChatGPT, with a 29% usage rate. Additionally, a Harmonic Security study analysing 1,000 AI tools found that 20.9% were specifically designed for customer service.?

To learn more about the rapid and drastic changes generative AI is bringing to various fields, including CX, check out "One year of ChatGPT - how has it changed customer experience?" by Leila Hawkins on CX Network .

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20 Strategies To Personalise The Customer Experience

Each new era brings innovative methods and tools designed to create a seamless, personalised customer experience that efficiently meets evolving needs and expectations. In our "age of experience," personalization reigns supreme. However, companies of all sizes often feel overwhelmed, unsure where to begin or how to design personalised experiences that align with ever-changing customer demands.

Before embarking on personalization, consider these crucial questions: How well do you understand your customers' fundamental needs and expectations? Do you prioritise listening and understanding them before simply offering solutions? Answering these questions thoughtfully shapes the roadmap for personalised experiences.

For detailed strategies on navigating the customer experience journey, from initial interaction to post-purchase and beyond, explore the article "20 Strategies To Personalise The Customer Experience" published by the Forbes Business Development Council in Forbes.

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A Valentine’s Day guide to better conversations with customers

If you want to build better, meaningful and engaging relationships with your customers, special days like Valentine's Day are an opportunity. These special days provide an ideal environment to engage more with your customers and connect them to your brand. So, how and through which channels do you communicate with your customers, how often do you engage with them and how do you respond to their problems?

In answering these questions, you can also learn some lessons from human relationships: Meet your customers where they are, Pay attention and Keep It Simple, Stupid, known by the acronym KISS. Studies show that the vast majority of consumers (80%) are more likely to buy from businesses that connect their interactions across phone, email and messaging platforms. If you want your customers to fall in love with your brand, you need to review your communication with them.

If you have any questions about how to improve this communication, take a look at "A Valentine's Day guide to better conversations with customers" by Ruth Zive in Fast Company.

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Quote of the Newsletter

You've got to start with customer experience and work backwards to the technology. You can't start with the technology and try to figure out where you're going to try to sell it.

Steve Jobs

Word of the Newsletter

Personalised Customer Experience

Personalised customer experience means that businesses use technologies such as data analytics, artificial intelligence and machine learning to customize and specificize products and services to meet the basic needs, expectations and demands of each customer, starting from the first contact with them. It is a customer experience approach designed to show that customers are valued and their interests are taken into account, recognizing that each of them has a different profile and background rather than treating them as a single whole.

Suggestions from Wiseback team?

?? Book

• One-to-One Personalization in the Age of Machine Learning: Harnessing Data to Power Great Customer Experiences | Karl Wirth and Katie Sweet

• As the users, consumers or customers see examples of customisation and personalisation of their preferences for their interests and expectations from different brands, they want other brands to do the same. People who reach you through different channels can quickly see the choices made for their expectations and demands by meeting them with a unique presentation in each channel and feel themselves as a special person here. On the marketing side, the experience developed and presented around one-to-many and one-to-all experience has evolved into a one-to-one experience as a personalised experience. However, this would not have been possible if machine learning was not available while evolving here. In the book One-to-one Personalisation in the Age of Machine Learning, you can get information about what one-to-one personalisation means with in-depth customer data, how it has followed a historical development and what the future will bring.?

? ??? Series

• The Playlist?

• Based on a true story, Spotify tells the story of Daniel Ek and Martin Lorentzon, the Swedish tech entrepreneur who helped close one era and start another in the music industry, and Spotify, which he launched to become the number one player in the music industry. Recognizing a huge gap in the market and challenging Silicon Valley with the motto "Music for Everyone", you can follow Ek's journey through different characters and departments in Spotify. You can learn about many topics such as the competition with record labels and especially Sony, which owns almost all of the cake, the design and user experience process of a digital environment, and the creation of a business model.

?? Video

• Steve Jobs and Customer Experience?

• In 1997, while Steve Jobs was answering questions from developers, a member of the audience directed a question to him and in response to the directed question, Jobs gave a very meaningful answer on the relationship between customer experience and technology.

???Podcast

• The CX Cast?
• The CX Cast, published by Forrester since 2015, provides research-based guidance on customer experience. Each week on the podcast, Forrester's analysts discuss the findings of the latest research in CX, analyse new topics in the news, and chat with CX leaders or professionals about how they've overcome the challenges of managing experience in their industry.

Are you ready to create a customer and employee experience success story for your business??

Then meet Wiseback?

Do you want to comprehensively review your business' customer and employee experience processes, leverage technology effectively and elevate your customer experience for the future??

If you want to learn more about Wiseback solutions, feel free to contact us .

Also, don't forget to subscribe to Focus on Experience monthly newsletter to stay up to date in the field of experience!?