The Future of Customer Experience: Predictions and Trends

As technology evolves, so does how companies engage with their customers. As a result, the customer experience has become a crucial aspect of business strategy, and companies are increasingly investing in tools and processes to improve it. In this blog post, we will explore some of the predictions and trends for the future of customer experience, backed by recent research from top business schools and real-world examples from product development companies.

Hyper-personalization

The rise of big data and artificial intelligence (AI) has enabled companies to collect and analyse vast amounts of customer data. This allows them to offer personalised experiences based on individual preferences, behaviours, and needs. According to a report by Bain and Co., companies prioritising personalisation will see a 6-10% increase in revenue by 2022.

Examples of hyper-personalization can be found in companies like Spotify, which uses AI to curate personalised playlists for each user based on their listening history, and Netflix, which recommends TV shows and movies based on the viewer’s previous choices.

Omnichannel customer experience

Customers expect a seamless experience across all channels, whether it’s in-store, online, or on their mobile devices. As a result, companies need to ensure that their customers can move seamlessly between channels without repeating information or facing any friction in their experience. According to a report by Forrester Research, companies with robust omnichannel customer engagement strategies retain an average of 89% of their customers, compared to 33% for companies with weak strategies.

Examples of companies excelling in omnichannel customer experience include Australian retail company, The Iconic, which provides a consistent experience across its website, app, and physical store locations. Another example is British retailer John Lewis, which uses a mobile app to help customers navigate its stores and find the products they’re looking for.

Voice and chatbots

The use of voice assistants and chatbots has grown exponentially in recent years, and this trend is set to continue. According to a report by Juniper Research, adopting chatbots across the retail, banking, and healthcare sectors will save businesses $11 billion annually by 2023.

Examples of companies using voice and chatbots for customer experience include American Express, which uses a chatbot to help customers manage their accounts, and H&M, which has a voice-activated mirror in its flagship store that offers styling recommendations to customers.

Customer-centric culture

Finally, having a customer-centric culture is one of the most critical aspects of delivering exceptional customer experiences. This means putting the customer at the centre of everything the company does and empowering employees to make decisions prioritising the customer experience.

Research by the London Business School has shown that customer-centric companies are 60% more profitable than those that aren’t. Examples of companies with a customer-centric culture include Apple, which encourages employees to focus on customer needs and design products accordingly, and Amazon, known for its customer obsession and focus on long-term customer satisfaction.

In conclusion, the future of customer experience is bright, with companies leveraging technology and data to create personalised, seamless experiences across all channels. By adopting these trends and prioritising a customer-centric culture, companies can differentiate themselves from the competition and build strong, long-lasting customer relationships.

References:

• Bain and Co. (2018). Personalisation: The right content at the right time for the right person. Retrieved from https://www.bain.com/insights/personalization-the-right-content-at-the-right-time-for-the-right-person/
• Forrester Research (2018). The business impact of investing in customer experience: A spotlight on financial services. Retrieved from https://www.forrester.com
• Frow, P., Payne, A., Eggert, A., & Hennig-Thurau, T. (2016). Service innovation: A service-dominant logic perspective. MIS Quarterly, 40(1), 155-175.
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• Vargo, S. L., & Lusch, R. F. (2016). Institutions and axioms: an extension and update of service-dominant logic. Journal of the Academy of Marketing Science, 44(1), 5-23.
• Tuli, K. R., Kohli, A. K., & Bharadwaj, S. G. (2007). Rethinking customer solutions: from product bundles to relational processes. Journal of Marketing, 71(3), 1-17.
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