A good customer experience (CX) has a delicate balance between relevance and respect, data precision, and human empathy. Thanks to advancements in cloud technologies and artificial intelligence, additional opportunities are created to use CX and drive new business growth.
Tshidi Machaba, sales director at inq
One of the key pillars behind this is the need to deliver a more personalised experience. Several elements are essential to help companies achieve this and differentiate themselves from their competitors. It all starts with contextual relevance. Personalisation must align with the customer’s current needs and situation. Practically, this can mean recommending products based on past purchases or interactions. Context helps make communications not just timely but pertinent and welcome.
On that note, timely communication is something that is often undervalued and yet it can make a significant difference. Effective personalisation means delivering the right message at the right time. Communication should take place when customers are most receptive, enhancing the likelihood of a positive response.
Thirdly, showing empathy and building an emotional connection are essential to adding value to CX. Viewing customers as individuals with unique needs and emotions rather than just transactional entities like purchase orders or invoices is vital. Understanding the customer’s perspective and showing empathy can significantly enrich CX for the business.
Understanding value
Of course, none of this can happen in a vacuum.
The company must put metrics in place to best determine the success of any CX initiative. For instance, will the company value engagement, increases in revenue, improvements in customer lifetime value, or all of the above? To this end, the accuracy of data becomes a non-negotiable. Reliable and precise customer data enable more targeted and impactful personalisation strategies, making accuracy a top priority.
Successful personalisation should lead to increased sales as customers are more inclined to purchase products that resonate with their specific requirements. Having said that, it remains important for the company to understand the customer’s value perception. This can provide insights into the potential reasons a customer might disengage, whether this be because of the product, price, or service quality.
At its core, personalisation should look at improving the customer’s lifetime value. It comes down to reinforcing the customer’s significance to the business beyond mere transactions. In this way, a company must encourage ongoing engagement and loyalty.
Successful CX
A good CX strategy that is built on best practices must have an integrated data platform in place. Centralising customer data from all touchpoints onto a single platform offers a comprehensive view of the customer’s interactions with the brand. Through this, a company can then identify both strengths and areas needing improvement.
Advanced analytics become essential in this regard. This can help predict future customer behaviours and needs, allowing for tailored communication strategies that anticipate and meet customer demands. Through this, customer journey mapping can be done with confidence. Documenting each step of the customer journey is important to identify critical personalisation opportunities that can enhance the customer experience.
A CX strategy is not a once-off event. It requires continuous improvement and optimisation. Companies must therefore regularly test various personalisation approaches and use those insights to refine strategies as the means to maintain their effectiveness.
Pitfalls to avoid
An effective CX strategy does not come with challenges. There is a risk that companies adopt too much personalisation. Customers can quickly feel overwhelmed by all this. Or, at worst, they feel as if they are being intruded on resulting in customer disengagement.
There are also privacy concerns to be cognisant of. Customers are increasingly sensitive about their data. Mishandling personal information can breach trust and damage a brand’s reputation. Furthermore, an inconsistent experience or inaccurate personalisation can frustrate customers. Invariably, this will create a negative perception and reduce the brand loyalty a person might have.
Inadequate technological infrastructure can also restrict effective data analysis and personalisation. This will undermine CX at the business, especially if the company is unwilling to modernise its systems.
CX can be a game-changer for companies looking to unlock growth opportunities. However, there must be a willingness to embrace change and use customer data in more innovative ways while ensuring the business maintains compliance.