The digital age has created better-informed, more-demanding customers. How a product or service is delivered is now just as important as the product or service itself. Customer experience (CX) will overtake price and product as the key brand differentiator by the end of 2020, according to a recent Walker study. Customer experience has become a strategic imperative for the CEO, CTO, and CMO and will soon be table stakes. To get there, organizations need a strong digital technology platform and a sense of what KPIs and stages are most influential in their customer’s journey.
Throughout 2019, Carpe Diem Global Partners has spoken with a broad set of 90+ consumer technology leaders—ranging from Fortune 500 to the smaller, more agile, venture-backed—about how they’re responding to this challenge and what emerging technologies they’re using to create a more resonant customer experience. “It’s been enlightening to see the rapid progression and impact specialized leadership and digital investments in customer experience are making to brands, online and offline, across both BB and B2C clients,” said Carpe Diem Global Partners Founder and Managing Partner, Jeff DeFazio.
In work with our clients and candidates, these four technologies are consistently referenced as having the greatest impact on how businesses shape the customer journey and ultimately on how customers feel about their brands.
This is the first of a two-part series. The second publication, due out in late December, will discuss what KPIs and stages most influence a customer’s journey.
Big Data Analytics
While the importance of big data is certainly not new, consumers are increasingly willing to share their data as they experience the value it can provide in return, often in the form of personalized offers and discounts. As a result, many businesses are employing big data analytics to process the raw information they receive from emails, surveys, social media posts, purchasing histories, and other inputs to gain deeper insights into customer behavior and preferences. The technology allows businesses to more precisely segment customers and deliver tailor-made marketing and services, as well as better understand customer satisfaction levels.
AI-Powered Customer Service
Businesses are also turning to artificial intelligence (AI) to shape and improve customer experience. AI technologies like machine learning, speech recognition, and natural language processing are transforming how companies receive, process, and respond to customer input and feedback. Using AI to power chatbots, voice and visual search, and supplement other customer-facing roles, companies can provide faster and more accurate customer service while reducing service costs. “People value immediacy and transparency, so the traditional support situation of holding on the phone or waiting to chat for 5-10 minutes can leave a bad impression,” one leader said. “Chatbots with AI significantly improve these interactions.”
Augmented Reality
Some early adopters are looking to augmented reality (AR) to gain an edge over their competitors. The technology, which enhances real-world environments with digital information, allows customers to virtually experience a product or service before they purchase it, often without them even having to enter a store. The technology has already been used in apps that let you “try on” makeup over a scan of your face or superimpose furniture on an image of your living room. Though the AR market is still in its early days, it has already shown its powerful potential to create a richer, more compelling customer experience.
Social Media
Customer experience leaders still see social media as an essential part of their CX strategies. Platforms like Facebook, Instagram and Twitter provide a more personal way to engage with customers, address issues, and solicit feedback. But they also amplify the voices of loyal customers, which often complement the company’s customer service efforts. Social media can also be an efficient way to source relevant content.” Crowdsourcing answers and leveraging the insights of experts is a less expensive way to answer customer questions,” one leader said.
While emerging technologies are increasingly essential for ensuring repeat, loyal customers, CX is a multiform process that is constantly evolving. With this evolution, the roles and required skillsets of the CTO and CMO are changing, and alignment and integration across these functions is more important than ever. “Today, the CMO and CTO must work hand in hand toward a shared and aligned vision for the customer experience,” said Carpe Diem Managing Partner, Debbie Gonzalez. “CMOs must be tech-savvy and CTOs need to adopt a customer-centric mindset.”
These market insights from Carpe Diem Global Partners are gathered from the firm’s extensive client work leading Board, CEO, CXO, and CHRO executive search engagements for consumer and technology-oriented companies. For deeper, custom insights, contact the firm at info@carpediempartners.com.
Carpe Diem Partners is a consultancy focused on Talent Management and Acquisition for Boards Members, Chief Executives and Senior-Level Executives; Advising Public, Private and Investor-backed companies on leadership imperatives. Headquartered in San Francisco, CA with national presence and global experience in all regions. For more information, contact us at info@carpediempartners.com.