How technology is driving CX in 2022
The tumult of the past two years has seen brands and businesses need to adapt and flex rapidly to meet continually shifting customer appetites. Undeniably, the impact of the pandemic will be felt by businesses around the globe for many years to come and many are not yet at a stage where full recovery is possible. Not being able to patron businesses in person for an extended period of time has seen more people than ever opt to communicate and work with brands online – and this drive to technology is set to influence customer experience trends well into the new year.
Developments in CX throughout 2021 reflected the upturn in online custom and marketing communications throughout extended coronavirus lockdown periods. An analysis of the trends in the industry last year, created by independent consumer review and experience experts Feefo, demonstrates a rapid move to mature and grow online capabilities by even the largest and most well-established of businesses. This was well demonstrated by the impressive recruitment efforts made by supermarket giant Tesco to bolster their e-commerce division in order to meet ongoing customer demand.
Furthermore, the increased uptake in incorporating technology into CX service delivery saw many firms begin to appreciate the potential in using consumer data to inform and improve relationship building. Extending and developing the traditional business-to-customer transactional relationship through to a mutual strategic one has been proven to increase customer lifetime value and boost brand loyalty. Consumer behaviour has reflected the human need to connect with others despite little to no in-person contact, and has seen customers seeking emotional and ethical connection with brands in ways not displayed previously. This trend was echoed through various consumer surveys carried out during the pandemic, that saw a marked increase in the consideration of brand values forming part of a purchase decision.
Looking forward to 2022, the role of technology in CX is expected to deepen further. The use of predictive customer insights will become commonplace, with management consultants McKinsey reckoning on such data being gathered and analysed to improve CX services increasing margins by up to 60%. The formulation, aggregation and analysis of such data using specific tools can form highly accurate models and deliver a more personalised and appropriate experience for each user or customer. Such growth in analysis technology management is expected to also spark expansion in the data privacy sector, as regulations increase in stringency and data gathering becomes more efficient and, in some cases, better concealed.
Indeed, despite the growing consumer expectation for a personalised service the mainstream understanding of data privacy issues (stimulated by large news stories such as the Cambridge Analytica scandal) means that businesses will have to manage the fine balance between creating customised content and handling data privacy sufficiently and securely.
The impending eradication of third-party cookies on websites has been delayed by Google from 2022 to 2023. Although this does negate the urgency of companies to adapt their online offering to meet the new requirements, predictions are for businesses to begin their move to shift website personalisation as part of their cross-channel digital experience in the second half of the year. This process will become more complex once third-party cookies are removed. Businesses who are serious about providing an ongoing positive CX — or at least a consistent one — will need to ensure a long installation period is planned for. ‘First party data’ from brands’ own channels can be utilised but it will need to be first collected, analysed and understood – a process which if not already begun must be established as a matter of priority.
The fragmentation of customer journeys is likely to remain with consumers accessing brand communications and inputs on a variety of channels – yet consumer expectations remain at an all-time high. Adding in the complexity of data provision and privacy arguably makes providing an all-encompassing positive customer experience more difficult than ever. Although the expected re-opening of more bricks-and-mortar businesses is hoped for the new year, it is unlikely that consumers who have adopted an online approach will abandon it. So, businesses must prioritise creating fantastic memorable experiences in order to encourage the development of loyal brand advocates.
While developing an effective CX strategy is now more mainstream amongst businesses than it ever has been, technology can be considered both a blessing and a curse. While it certainly makes the integration of smart approaches easier, the added complexity of ever-changing regulations and rules around data can complicate the situation. 2022 is set to be a year of further development in both technology and customer appetites – with the latter very much informing the former. If companies are able to keep their customers at the heart of their operations they will succeed… and flourish.
