Over 90% Companies Consider CX a Differentiator: But More Needs To Be Done

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The COVID-19 pandemic transformed customer behavior and, hence, customer experience (CX) operating models. To understand how organizations have adjusted their operating models and where they are when it comes to CX, NTT Ltd interviewed over 1,350 professionals across 34 markets and 14 sectors worldwide. The study also included a voice of customer (VoC) survey in which there were over 1,400 respondents.

A major finding from the 2021 Global Customer Experience Benchmarking Report was that more organizations have realized the importance of CX and taking the necessary steps to deliver seamless CX. The responsibility for customer experience has also moved up to the board level. About 75% of organizations have a board-level member accountable for CX. This has gone up from 35% in 2020. Further, about 53.8% have a CX-dedicated executive in place, and 15.5% have a non-board-level executive dedicated to CX.

See more: The Pandemic Reshaped Mobile Customer Experience: 6 Things Brands Should Do Next 

CX Is Recognized as a Key Differentiating Factor

More organizations have recognized customer experience as the differentiating factor. Companies that are growing are three times more likely to view CX as a primary differentiator. The study found that while 90.9% of organizations consider CX a differentiator, 64.7% of industry disruptors consider it a primary differentiator. Further, 43.5% of professionals agree that organizations that fully embrace CX as a differentiator are twice as likely to have highly engaged employees.

Organizational view of CX as a primary differentiator
Source: 2021 Global Customer Experience Benchmarking ReportOpens a new window

The study also showed that digitization and automation are fundamental to deliver excellent CX. At the same time, about 95.5% of customers would like to be able to speak with a human. Hence, an effective CX strategy should nurture customers from a digital to a human-led engagement.

Customers Want Better CX Delivery

While organizations have taken positive steps to deliver better CX, customers feel that more needs to be done; customer rating of CX delivery is lower than what companies think. According to the study, while 24.6% of organizations believe CX is at a “detractor level”, 43.8% of customers believe CX is at a detractor level. The “promoters level”, according to customers (22.6%), is also a little less than that rated by organizations (29.8%). It was further seen that industry leaders had less than half the number of detractors than the global benchmark (11.8%).

Comparison of customer and organizational ratings of CX
Source: 2021 Global Customer Experience Benchmarking ReportOpens a new window

This shows that while companies believe that CX is important, not everyone is using customer insights and collaborating across functions to improve CX. Organizations that use data analytics and striking the right balance between digital and human interactions can be expected to have low detractor scores. Further, organizations also need to involve their customers and employees in the customer journey design process to achieve the desired CX results.

Use Automation and Use It Wisely

The study found that more CX processes are now being managed through automation. In fact, 90% of organizations said they accelerated digitization and automation during the pandemic to improve their CX capabilities. For leaders, digitization and automation were also the springboards to gaining market share. Organizations are also seeing the value of automation, with about 20% saying that AI and robotics exceed expectations.

However, this is not necessarily leading to improved CX. Only 34.7% of customers said they were fully satisfied with digital and/or automated CX solutions. Further, only 17.9% of customers rate digital or self-service CX solutions at a promoter level.

The number one reason customers cited for discouraging them from using digital contact channels was the preference to speak to a human. This means that for organizations to improve their promoter levels, they should use automation that supports the human. Further, organizations can focus on bringing together artificial intelligence (AI), machine learning (ML) and virtual agents (e.g., chatbots) to bring the true value proposition of CX automation.

 Reasons for customer resistance to digital/self-service channels
Source: 2021 Global Customer Experience Benchmarking ReportOpens a new window

See more: AI Alone Won’t Solve Your Customer Experience Problems, but It Will Expose Them

Enhance Employee Capabilities To Improve CX

Given that the human touch is necessary to improve CX, it is imperative that organizations enhance the capabilities of their employees to deliver frictionless experiences. The pandemic forced organizations to move to remote working models. Yet, employees need adequate digital tools to provide the same or improved customer experience, whether they are working from the office or home. Having said that, the study found that only 48% of organizations had the technology to support their agents fully.

An optimized strategy incorporating automation is necessary to achieve positive CX outcomes. The study also found that highly automated organizations also enjoyed over a 10% lift in employee experience, ease of resolution, and financial performance.

Key Takeaway

Customer experience has continued to grow in importance. As most agree, it has emerged as the primary differentiating factor for leading organizations. As such, organizations must devise strategies that incorporate automation, having the right balance between digital and human interactions, and enhancing employee capabilities and experiences to achieve positive CX outcomes.

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