CUSTOMER EXPERIENCE PREDICTIONS - REPORT 2022
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CUSTOMER EXPERIENCE E XC LU S I V E E B O O K PREDICTIONS REPORT 2022 Discover what trends, pain points and opportunities CX leaders from PepsiCo, Amazon and Roche, are predicting for 2022 DISCLAIMER: The information in this piece does not constitute as legal advice and so should not be regarded as such.
Foreword Contents 2 As the customer experience (CX) industry looked to Likewise, Voice of the Customer was a priority, with 18 per Amazon: Strengthen CX teams with intelligent recover from impact of Covid-19 in 2020, many trends cent of respondents to the Global State of Customer automation and holistic recruitment strategies that emerged during a year of turmoil have continued Experience 2021 report survey noting that they always page 4 to intensify in 2021. Looking back on the trends of 2021, ensure that voice of the customer data reaches the CX Network has been able to build a foundation that right department. This highlights the importance of PepsiCo: Digital hubs to help drive digitalization will assist in forecasting the trends we are all set to democratizing data to the right department and reducing page 5 experience in 2022. data silos remains a continuing priority for CX practitioners. Roche: Successful CX transformations to be led by Customer centricity Sustainability VoC - page 6 As it has been in previous years, one of the overarching Brands have felt rising scrutiny from customers over DHL Express Manila and Brunei: Advances in trends in 2021 was ensuring real customer centricity. sustainability practices and it is beginning to shape technology will continue to improve employee More than half of the CX practitioners surveyed for CX buying decisions in a real way. CX practitioners have experiences - page 7 Network’s Global State of Customer Experience 2021 noted this, with 80 per cent of those surveyed for CX reported that customers will switch brands if they are Network’s Global State of Customer Experience 2021 Talkdesk: AI sceptics risk being left behind their unsatisfied, meaning companies must work harder than report saying that customers are becoming more competitors - page 8 ever to not only attract, but retain customers. conscious of sustainability. Standard Chartered Bank: New technologies to ensure frictionless channel integration - page 9 “Brands will become increasingly measured by their wider impact on the planet...Reinventing existing customer experiences to do so and Dialog Axiata: Brands must fight to ensure digital transformation does not dilute human-to-human looking towards future implementations across their customer service interactions - page 10 offering will be a non-negotiable for those wanting to maintain a competitive edge” Zen Internet: Sustainability to remain a priority for consumers - page 11 Dean Burdon Customer experience director at Zen Internet 2022 Predictions from CX Network Advisory Board Page 12-13 Customer Experience Predictions Report 2022
Foreword 3 As the worldwide effects of climate change grow more Artificial intelligence ROI of customer experience visible every day, such as in the wildfires witnessed in Australia or flooding in South Asia, businesses are being In 2021, the top investment priority for CX After falling out of the top 10 CX challenges in 2020, held increasingly more responsible for their effect on the practitioners (as seen in CX Network’s Global State of 2021 saw ROI troubles regain prominence. CX Network’s environment. In order to engage with this growing trend Customer Experience 2021) was artificial intelligence Global State of Customer Experience 2021 revealed that organizations should consider the impact their practices (AI) and machine learning (ML). The digital acceleration 40 per cent of CX practitioners cite demonstrating ROI have on the environment and what they can do to triggered by the Covid-19 pandemic coupled with from CX as their top investment challenges. reduce it. the need for automated customer service options as customers were forced to take their customer service This re-centering of proving ROI from CX initiatives may Elena Devis, vegan category lead at Deliveroo, says that needs online meant that the use of AI and ML be a result of competing for business spend, as 33 per if brands do not implement sustainable changes they became essential within the past year, with this only cent of CX practitioners also cited ‘proving ROI’ as their may see a potential drop in consumer loyalty and NPS, set to continue. biggest hurdle in gaining investment for CX initiatives in and limited new customer acquisition. the 2021 Global State report. Despite the growing buy- in from stakeholders, the majority of respondents also stated the pressure around proving return on investment (ROI) is stronger than ever. With these trends from 2021 in mind, in this report experts from Amazon, PepsiCo and Roche give their predictions for the trends all CX practioners should look out for in 2022. Focusing on the company culture of caring about the customer yields better results than any number of planned and organized CX projects Iain Langridge Product and customer experience leader at Amazon Customer Experience Predictions Report 2022
Strengthen CX teams with intelligent automation and 4 holistic recruitment strategies Iain Langridge, product and customer experience leader at Amazon To boost the quality of talent residing in CX teams, Augmenting employees with Langridge explains that as CX is a multi-dimensional technological enhancements function, organizations should hire employees with the Lesson mindset of searching for diversity in cognitive skills. While automation has traditionally focused on the customer, Langridge notes that the complexity of Use automation to augment employee- He notes: “The sheer breadth and depth of skills needed automated experiences and controllability of the customer interactions, reduce customer wait to lead a company in CX are still being well and widely employee environment makes it prime for automation to times and strengthen CX teams understood. Until you have professionals who have grown have a productive impact. up in CX from day one, you have to ensure that you have a broad set of skills and original thinking on the team, and “You can augment employees with automated tools and that can only come from diverse hiring and skills.” processes and dramatically improve customer outcomes and speed to resolution,” says Langridge. This talent acquisition approach should build the needed foundation for the CX department instilling a customer-centric culture in the wider business. Customer centricity is central to the success of digital CX transformation in Langridge’s experience. “Focusing on the company culture of caring about the customer yields better results than any number of planned and organized CX projects,” Langridge notes. “It works, because you are leveraging the power of many people in the company to deliver impactful outcomes across customers’ journeys. So long as you have got the company measuring and caring about customer engagement and retention, then you are winning the war regardless of individual battles.” Customer Experience Predictions Report 2022
Digital hubs to help drive digitalization 5 Athina Kanioura, chief strategy and transformation officer at PepsiCo Using internal digital hubs to encourage She believes that by introducing digital hubs Give consumers better transparency employee innovation will become a priority in designed for real-time collaboration, organizations will 2022, predicts Athina Kanioura, chief strategy and be able to drive digitalization and increase their digital By introducing digital hubs, companies will be able transformation officer at PepsiCo. These internal hubs delivery networks. to give consumers better transparency on their will be shared workspaces designed to encourage products, including real-time sales and inventory data. collaboration between employees. “By creating an agile and dedicated environment where Additionally, it will allow employees to utilize predictive innovation will thrive, [brands] will have the opportunity decision-making tools, allowing them to address to lead work that will reach global scale,” says Kaniora customer issues quicker. Lesson Introduce internal digital hubs to increase employee innovation and accuracy around the service they deliver to your customers “By creating an agile and dedicated environment where innovation will thrive, [brands] will have the opportunity to lead work that will reach global scale,” Athina Kanioura Chief strategy and transformation officer at PepsiCo Customer Experience Predictions Report 2022
Successful CX transformations to be led by VoC 6 André Grandt, customer experience chapter lead and transformation officer at Roche Over the next 12 months, there will be a focus in the Grandt also believes that in 2022 businesses will Increase customer feedback customer experience space on designing intuitive, become less concerned with ROI and more with doing touchpoints consistent digital and omnichannel experiences, says social good as customers begin to evaluate brands André Grandt, customer experience chapter lead and base their buying decisions on sustainability In order to engage with this strategy, Grandt suggests and transformation officer at Roche. To do this in a priorities and ethics. that brands shift their mindset from capturing customer streamlined manner brands should look to customer feedback at only a few, isolated touchpoints to capturing behaviors to guide their transformation projects. “Going forward customers are evaluating more than ever customers’ signals at every touchpoint consistently. This, before. This will include [considerations] such as how well Grandt says, will enable brands to better predict and Grandt says: “More and more companies are realizing [your company] treats [its] staff, in what ways you as a respond to their customers’ needs and wants. they have key customer signals, for example behavioral business support your community, and whether you make [or] emotional, that they must capture, analyze, learn from a positive contribution to society. All of these count and and act on to enhance customer experiences.” enhance your overall customer experience,” he explains. Lesson Capture signals at every touchpoint to better respond to customer needs. “More and more companies are realizing they have other key customer signals... that they must capture, analyze, learn from and act on to enhance customer experiences.” André Grandt Customer experience chapter lead and transformation officer at Roche Customer Experience Predictions Report 2022
Advances in technology will continue to improve 7 employee experiences Julian Neo, managing director of DHL Express Manila and Brunei Remote working will stand as an integral part of future too caught up by what is trending; [while] it is good workforce models, according to Julian Neo, managing for others, this does not necessarily mean it is good for director of DHL Express Manila and Brunei. While the you too.” “new normal” is still evolving, he believes that technology will continue to place employees in a stronger position to “Automation not only increases deliver for customers. productivity but more importantly, Neo says: “We have learnt that automation can be it improves our employee leveraged for mundane tasks and what this does is experience as well.” free up valuable time for our employees to do more meaningful work like connecting with the customers. Julian Neo Managing director of DHL Express Manila and Brunei “Automation not only increases productivity but more importantly, it improves our employee experience as well,” he continues. “So we will continue to find that balance between technology while still providing the Lesson human touch in our customer interactions.” Utilize technology to improve both customer Make data-led technology decisions and employee experience. Despite the enticing promises made by the potential of technology, Neo advises CX practitioners resist blindly jumping on the technology bandwagon and instead focus on what matters most to their customers and employees. He shares: “Identify [your customers’] needs and then work on finding the best solution. Be careful not to get Customer Experience Predictions Report 2022
AI sceptics risk being left behind their competitors 8 Jay Gupta, product marketing director at Talkdesk The growth of digital customer engagement will mean more than half plan to invest in AI-enabled tools in the their agility to adapt to changing business needs, says AI-based solutions and capabilities will become more next year. Gupta. She continues by saying that organizations prevalent, predicts Jay Gupta, product marketing that do not adopt AI into everyday functions and tasks director at Talkdesk. Introduce automation or risk lower will struggle to compete in their respective markets, customer and employee satisfaction negatively impacting CX. “AI sets an intelligent foundation to meet rising customer demand, and reinforces the need for delivering simple Gupta predicts: “The CX trends for 2022 previously She also explains that by ignoring routine tasks and frictionless ways for customers to interact with mentioned will be impacted and accelerated by the automation will lead to lost opportunities for efficiency businesses,” she explains. investment of AI technologies in contact centers, which gains, reducing agent productivity and potentially works as a differentiation point for the competitive affecting morale and ultimately putting customer The importance of AI is fast becoming a priority as it is landscape in every industry.” satisfaction at risk. the only way to scale the automation of processes and workflows that previously required human effort, Gupta She continues, saying that ignoring these trends and Gupta adds: “Organizations that do not focus on shares. CX professionals are becoming particularly the application of AI functionalities in the contact convenience and personalization with customer self- focused on using AI to save time for both customers and center will mean organizations are left behind, as these service options risk harming the customer journey, and agents and adding extra layers of convenience with technologies are increasingly shaping the future of CSAT which includes the need for 24/7 customer service customer self-service options. Faster, more accurate customer experience. and offering personalized experiences.” solutions and a streamlined, connected workflow are integral to achieving the right level of personalized “AI is now considered a necessity to compete effectively experiences that customers now expect. by delivering faster, more accurate customer service Lesson and contact centers cannot sustain growing staffing Trends like this can also spill over to retail use cases as issues and scaling customer service without the help of Organizations must introduce AI retailers are pursuing their CX priorities making significant intelligent technology,” she notes. solutions to prevent being left behind investments in customer feedback, self-service and by digital acceleration digital channels. However, research conducted by By not considering the automation of processes and Talkdesk for its report Powering retail growth: The next workflows in the contact center and continuing to use generation of contact centers has found that most inflexible legacy systems, organizations run the risk of retailers’ self-service capabilities do not leverage AI, but being immobilized in their quest to be digital-first and Customer Experience Predictions Report 2022
New technologies to ensure frictionless channel integration 9 Millie Gillon, MD and global head of CX at Standard Chartered Bank In 2021, many companies optimized their customer and] compare them in a different store and [end up] forecasting and do an impact analysis. Future journeys, as Gillon observes. She believes companies will purchasing the [product] online. In [a] scenario [like this] forecasting can additionally help teams to come up continue to introduce new technological enhancements most of companies [will] struggle to have a holistic view with new innovations and ride the change rather than to buyers’ journeys in 2022. of the journey. In 2022, [I] believe this will get better observing them from a distance. using technologies like geo-fencing and store agent One key improvement area that needs to be addressed assistive technologies.” over the next 12 months in Gillion’s opinion, however, is channel integration. The sporadic channel choices Proactive analysis for change customers can make intensifies the need for frictionless management Lesson channel experiences. Gillon suggests to intelligently identify the Introduce future forecasting to engage Gillon explains: “A customer visits a store [of a brand] technological upgrades required, CX practitioners with trends head-on. to enquire about a product, [but then they can go should frequently organize workshops around future “To intelligently identify the technologicall upgrades required, CX practitioners should frequently organize workshops around future forecasting and impact analysis.” Millie Gillon MD and global head of CX at Standard Chartered Bank Customer Experience Predictions Report 2022
Brands must fight to ensure digital transformation does 10 not dilute human-to-human interactions Sandra de Zoysa, group chief customer officer at Dialog Axiata De Zoysa notes that while the Covid-19 pandemic De Zoysa stresses the importance of this, stating: had a devastating impact, there were a few “Although customers are adopting to new self-service advances within the business realm that should be solutions, it is essential that organizations continue to Lesson acknowledged, including the accelerated adoption of have the human connection with the customers. Digital digital channels. adoption leapfrogged during the pandemic, especially While automation can be useful, it in lockdown periods, but I feel that the physical touch is important to balance it with In 2022, de Zoysa believes that the objective for brands points, such as retail outlets, will continue to serve human connect. should be to retain their digital customers and push customers as due consideration need to be given to for further adoption through the implementation of customer segments who might not be as tech literate.” sophisticated technologies such as AI, ML, augmented reality, intelligent automation and 5G. De Zoysa explains: “The modern customer in this social media era is used to immediate gratification where purchasing and servicing is expected to be an ‘always on’ experience. Hence organizations will need to evolve their digital platforms quickly to be able to meet the customer expectations.” Balance humanity with automation When considering digital transformation, de Zoysa advises organizations to seek to balance humanity with automation. While digitization delivers convenience to customers, it does not match real human-to-human interactions where relationships can be built through empathy, understanding and rapport. Customer Experience Predictions Report 2022
Sustainability to remain a priority for consumers 11 Dean Burdon, customer experience director at Zen Internet Burdon believes that the evolving needs and Introducing a greener culture expectations of consumers will pressure businesses Lesson into prioritizing sustainability in 2022, especially as the Burdon anticipates that in 2022 there will be a climate emergency becomes a higher concern for growing customer demand for a greener culture. He The pressure for businesses to be many consumers. believes that this will in turn challenge the CX design sustainable is only going to increase in principles that are preoccupied primarily with costs, 2022, so do not ignore it. “Brands will become increasingly measured by their profits, NPS scores and customer retention. wider impact on the planet and will be held accountable by their customers and stakeholders,” Burdon explains. “Businesses will need to start to rethink legacy “Reinventing existing customer experiences to do so and processes within their CX design that negatively impact looking towards future implementations across their the environment and roll out more sustainable customer service offering will be a non-negotiable for alternatives to help ensure continued customer those wanting to maintain a competitive edge.” satisfaction,” he adds. “Brands will become increasingly measured by their wider impact on the planet and will be held accountable by their customers and stakeholders.” Dean Burdon Customer experience director at Zen Internet Customer Experience Predictions Report 2022
2022 Forecasts from CX Network Advisory Board 12 CX Network’s Advisory Board give their predictions for 2022’s CX trends In its November meeting, the CX Network Advisory Board discussed their predictions for the CX trends that will become most prevalent in 2022. Upskilling through automation Augmented support to become more prevalent Claire Hill Thomas Reby Customer experience director at Studio Retail Strategy manager at Google Hill anticipates that the CX industry will move away from lower paid contact With many customers migrating to adopt remote, digital channels to center staff, as a result, employees will be upskilled away from transactional, engage with companies, this has prompted a data-driven push around high volume-low complexity interactions. These interactions will instead be companies delivering signal based interactions and personalization, says handled by self-service solutions or AI. This move to automation will signal Reby. He believes that while AI is already becoming increasingly prevalent in a shift to a more complex world of working, with an increased capacity for the CX industry, the rising generation and use of customer signals is creating meaningful, value-adding conversations between customers and advisors. a tipping point where organizations will be able to make large strides These meaningful interactions will lead to higher-skilled workers being more forward in providing sophisticated, augmented, semi-human interactions, valued, and will be more likely to have higher job satisfaction, she predicts. via AI and machine learning. “This is a trend we have seen [building] “I expect some strides to be made in over time, but it feels as though it is really augmented support next year…this could accelerating now… We are investing [in our be bi-directional; customer assistants/bots employees] to make sure they are ready for interacting with Digital Customer Service this shift to a more complex world of working.” capabilities of companies.” Customer Experience Predictions Report 2022
2022 Forecasts from CX Network Advisory Board 13 CX Network’s Advisory Board give their predictions for 2022’s CX trends In its November meeting, the CX Network Advisory Board discussed their predictions for the CX trends that will become most prevalent in 2022. Data privacy and customer trust continue to be EX will outrank CX top of mind Ingrid Lindberg Kitty Xu Founder and CXO of Chief Customer Senior quantitative user experience research lead, Pinterest Companies have figured out that EX drives CX and that they must rotate to an Xu states that respecting privacy and trust from customers is going to intensify employee focus rapidly, says Lindberg. Lindberg supplied five key areas that in importance following the data breaches seen within large organizations. She also companies must focus on in order to make the pivot to an EX-focused culture: believes that Google’s depreciation of cookie technology will force companies to reassess marketing strategies and how they engage with customers. Voice of Employee – Focus on meeting the unmet needs of your employees. Find the questions you are not asking. GenZ consumers to shape the future of retail Connectivity – Brands must ensure there are ways that employees can She went on to note that the power of Gen Z cannot be overlooked. For connect to each another and leadership, even when working remotely. those born in the younger generation, their online behavior is very different from millennials and even Generation Alpha. This difference in online Work/life balance – Companies must help their employees figure out how to behavior means that each customer base has very different mindsets, and turn off work when they are home and working longer hours than ever before. organizations must consider this in their strategies. The workspace – Brands must rethink the physical spaces their employees “Privacy is always going to be top of mind occupy, whether it at home or in physical offices. for consumers. Brands need to consider how Performance – Organizations have spent years figuring out how to measure they are going to advertise without using soft skills, but they must reconsider what performance management looks consumers’ personal data.” like in a virtual world. Customer Experience Predictions Report 2022
Final remarks 14 For 2022, the CX space will see use of technology human connection in order to allow employees to build can demonstrate to both consumers and employees that to assist both customers and employees become relationships with consumers. Likewise, internal their values are recognized and important. more prevalent and consumer priorities like digital hubs to increase employee innovation. sustainability centered. In summary, to retain and attract customers in Capturing customer feedback at all points of 2022, brands need to deploy strategies that blend AI will be especially prevalent, especially the use the customer journey will remain important to CX automation with human contact, seek real-time of automation to help customers and employees practitioners, and using this customer sentiment to shape feedback from customers and meet their expectations alike and create frictionless customer journeys. However, business decisions will become a priority, especially in in terms of doing social good by introducing and practitioners should balance the use of technology with terms of sustainability. By engaging with this trend brands developing sustainable practices. Customer Experience Predictions Report 2022
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CX Network’s 2022 Calendar 16 Online Research Expert Insights Benchmarking Market Webinar CONTENT FORMATS Webinar Events Report eBook Workbook Update Day JANUARY 2022 FEBRUARY 2022 MARCH 2022 APRIL 2022 MAY 2022 JUNE 2022 Predictive CX Employee experience CX APAC Journey Management CCW Digital ANZ Automation Buyers Guide VOC Self Service CX APAC Report CX Personalization CX APAC CX Automation in Digital CX Calculating ROI in CX VOC Global State of CX Rules for APAC Report Self-Service Buyers Guide CX Metrics Checklist NPS and Customer Custom Slot in APAC Advocacy CX Data and Analytics CX in Travel and Predictive CX in APAC Hospitality in APAC Speech Analytics Custom Slot Global State of CX Day Custom Slot Custom Slot Custom Slot Custom Slot JULY 2022 AUGUST 2022 SEPTEMBER 2022 OCTOBER 2022 NOVEMBER 2022 DECEMBER 2022 Contact Centers Financial Services VOC APAC ROI in CX Future Contact Center CX Trends and Trends and Tech APAC Predictions Customer Success Omnichannel Data and Analytics CX in Telecoms Digital CX 2021 Customer Experience Big Book of Data Digital CX AI in CX CX in Financial Predictions 2022 Insight and Analytics Services Contact Centres CX Journey Mapping Custom Slot CX in Retail Automation Omnichannel Models Data & Analytics How to Master Personalizing CX in Customer Intent Chatbots Custom Slot VOC APAC APAC Custom Slot Custom Slot Custom Slot Custom Slot Customer Experience Predictions Report 2022
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