CX has become a driving force behind business growth, making it more critical than ever to celebrate Customer Experience Day this year. CX refers to every interaction a customer has with a brand, from browsing a website, to receiving ongoing support. Research shows that 86% of customers will pay for a better experience, and companies that prioritise CX report on average 60% higher profits than those that don’t. In today’s ever evolving and demanding world, delivering a seamless and effortless experience can be the sole reason a customer chooses you over your competitors.
CX is not a new concept. It’s been around for a while… In 1868 Watkins Liniment became the first company to offer a money-back guarantee. And in 1876 Alexander Graham Bell patented the electric telephone, providing a huge leap forward, preventing customers having to travel long distances for support.
In the late 1990s and 2000s, businesses started shifting to a more customer-centric approach. The internet, mobile devices, and social media completely transformed CX, forcing brands to rethink how they engaged with customers.
2020s, COVID hit forcing most businesses to operate fully online. The speed and demand from customers has never been greater. Fast forward to now, CX is less about an individual touchpoint, and more about orchestrating a simple, consistent, and enjoyable experience across all channels, whether it be online, mobile, at home, in-store etc.
Today, CX has evolved into a blend of hyper-personalisation, convenience, and emotional connection. Consumers expect brands to know them. They expect meaningful and tailored experiences. In fact, 80% of customers are more likely to purchase from companies that offer personalised experiences. And no, this doesn’t just mean the basics anymore. Personalisation isn’t just about displaying someone’s name in the navigation bar. It’s about delighting customers in ways that is only true to them.
Data and AI are now playing a crucial role in shaping the modern world. Real-time insights enables brands to predict customer needs and AI-powered tools can provide instant support. It’s no longer about leveraging data to solve problems but more so to anticipate and prevent them.
The opportunity for business to improve CX has never been more significant. According to a study done by PwC, 73% of consumers say that CX is an important factor in their purchasing decisions. Brands that excel in CX grow their revenue by 4-8% above the market average. In contrast, poor CX is costly. It’s estimated that approximately $75 billion is lost each year due to bad customer experience. There’s a reason companies like Apple and Amazon have become CX leaders. They continuously innovate, and they focus on customer convenience. And it’s not about spend on CX related initiatives, it’s about the mindset everyone in these organisations adopts.
Looking ahead, we’ll definitely continue to see technologies like AI, AR, VR challenge the way humans interact with brands. However the environmental impact and data privacy concerns will drive an increasing need for more transparency around data practices and sustainability as consumers are progressively aligning with brands that reflect their own values. A clear brand purpose and proposition will be more important than ever in maintaining a scalable and sustainable business.
Customer Experience Day 2024 reminds us that customers should always be at the centre of any business strategy. If we’re not creating things with the people who’ll be using it front of mind, whose agenda are we serving? CX is no longer just a trend, it’s a critical element of business success. As customer expectations continue to evolve, brands that prioritise CX innovation will thrive, while those that ignore it risk being left behind.
Learn more: Customer Experience Drives Successful Loyalty Programs
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