We are living in the time of buzzwords. “Disruption”, “AI”, “IoT”, “blockchain” – all these terms sound sexy. I know, I know, a couple of these “terms” are disciplines, but lately, it seems like the formula for getting attention goes something like this:
Attention = “sexy term” + product/service
“CX” as a term is no different. Look at the trend below from Google which shows the rising popularity of the two-letter acronym.
So, is CX a fad? Well, no.
Even if the “CX” loses its zing as a term, there’s no doubt that the focus on customer experience is here to stay. Here are 4 reasons why customer experience will remain vital, irrespective of whether “CX” retains its popularity:
- It’s harder than ever to retain long-term competitive advantage. Your products cannot and will not sustain long-term advantage on features and benefits alone. Lower technology costs have lowered barriers to entry for many industries, making product and process imitation easier than before. What will set your business apart from the competition is not just the product, but the interaction you have with your customers. A study by Walker found that customer experience will overtake price and product as the key brand differentiator by the year 2020.
- Products now have a service component too. Whether you realize it or not, almost every product now has or needs to have a service component. Walking into an auto showroom is no longer just about the car. It’s the staff, it’s the add-on services, the brand’s story, and everything in between. Selling products over the internet is no longer about logistics and minimizing last-mile costs, but about limiting bad experiences and resolving customer queries as soon as possible. I could go on and on.
- We are living in the Meaning Economy. As author and FT500 consultant Bernadette Jiwa puts it, people today look for value beyond the need a product or service fulfills. How people derive that value is entirely dependent on how you position your brand and the experience that goes with it. Taking a little time to think about how you can add value by improving customer experience will help build advocacy, which in turn will spur positive word-of-mouth to ultimately improve the bottom line.
- Customers interact with you across multiple touchpoints. Ensuring your customers receive a seamless positive experience across touchpoints is now a necessity. A few years ago, it would have been perfectly fine to manage the in-store experience independent from the digital experience. Unfortunately, customer journeys are becoming more complicated every day, which means that organizations must consider an omnichannel approach. A poor experience offline can quickly seep online and vice versa. If you consider a customer-centric approach, you can quickly start to separate practices that offer value and those that don’t (like having a chatbot chat box open on every single page).
Finally, customer feedback management is integral to customer experience transformation. Don’t take my word for it, the folks over at Forrester believe it too. At Twistar, we are at the forefront of using the latest technologies so that we can improve in-moment feedback in a way that is not only more fun and intuitive, but more effective.
And yes, we’re an IoT product that uses AI. How’s that for using the formula?