Most executives realize that customer experience (CX) is where you can truly make a difference through data analytics and personalization to build stronger relationships with customers. More than a quarter of executives worldwide have actually benefited from customer experience research.
Despite the known advantages of the research, marketers from all over lack the basic understanding of what it takes to qualify as loyalty leaders. This means that they have yet to capitalize on ways that are sure to deliver superior customer experience. Unfortunately, most marketers are not looking to create more valuable content or improve analytic capabilities to come upon groundbreaking ways of sustaining great customer experience.
According to a Forrester research, every customer experience leader as compared to a company without requisite CX skills outperformed it in terms of revenue growth. CX leaders delivered a compound annual revenue growth rate of 17 percent over the five year period, compared to just 3 percent for CX laggards. This is a clear indication of the fact that CX leaders are made through a focus on excellent customer experience. The research also found that this gulf between CX leaders and laggards was most pronounced in cable and retail markets where CX leaders outperformed their laggard competitors by well over 20 percent.
orrester’s Harley Manning says,
“Now, we realize that correlation is not causality, there could be something going on here other than CX driving the revenue growth.”
While this proven notion of how to shine in the market remains, many companies do not have the skills to capitalize on this opportunity. A recent study by Forbes Insights shows that only a meager 29 percent of executives believe that their using data analytics will help them deliver a superior customer experience. According to eMarketer, “less than 50% of respondents said their organizations had all the necessary skills related to customer experience disciplines such as project management and data analytics.”
At the same time, a majority of companies are looking to improve their digital channels but less than half are working to improve their traditional channels, using analytics and content creation capabilities. However, fewer are creating dedicated CX groups, mobilizing employees as advocates, or empowering sales agents which is somewhat surprising, given that the virtues of these have been discussed for years.
The virtues of an excellent customer experience, though proven through research are expected to help better CX skills materialize for companies. Beyond any shadow of doubt, companies focused on excelling at CX will have advantages over companies that are lagging for the foreseeable future.
igital customer experience is becoming an increasingly important part of the marketing playbook. Many marketers still doubt its importance and lack the tech skills required to improve upon their CX skills. With heaps of data available to marketers now in the form of data analytics and personalization techniques, executives could better understand their target audience.
Forrester Consulting report finds that many marketers lack the skills necessary to implement customer experience strategies. The eMarketer research further found that many of these marketing decision-makers believe that their inability to take action is internal rather than being dependent on contingencies. Accenture and Forrester Consulting surveys claim that many marketing executives lack the necessary customer experience skills in their teams. For example, less than 50% of respondents said their organizations had all the necessary skills related to customer experience disciplines such as project management and data analytics. Lack of collaboration is also one of the culprits. Fewer than half of the respondents said that their workplaces fostered collaboration.
In a world teeming with research on customer experience and the clear merits of excelling in the CX realm, it is surprising that some marketers do not vie for CX as the first step of the ladder of success. Over the past few decades, better CX has been known to increase revenues, drive the engine of profitability, reduce churn and in effect make your customers your loyal evangelists. Analysts stress on perfecting CX because there is a lot of room to innovate here. While form, design and functionality are considerations long left behind, this is where a business can truly make its mark. It is about time that companies look to switching their focus to mastering customer experience and wake up to its potential.