Key Challenges to Customer Experience (CX) in 2022

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Key Challenges to Customer Experience (CX) in 2022
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Deloitte found that “customers are likely to spend 140% more after a positive experience than customers who report negative experiences”. Another statistic by Super Office states that “customer-centric companies are 60% more profitable than companies that don’t focus on customers”. Such statistics reflect the pivotal role of customer experience in a company’s ability to achieve long-term success.

Most companies today are aware of the implications of poor customer experience and will do what’s in their power to enhance satisfaction at every touchpoint. However, there are certain challenges faced by all organizations while trying to create a frictionless customer experience. That brings us to today’s article, where we will explore 5 key challenges faced by CX experts when trying to improve CX, and the ways in which these challenges can be overcome.

What is Customer Experience (CX)?

Customer experience refers to the perception customers have of a brand based on their overall experience with the company across all touchpoints within their customer journey. CX is critical in helping a company create customer loyalty, prevent churn, and achieve long-term success.

Customers today have a range of options in the market for almost every product they could desire. If one brand doesn’t meet their expectations, they will just move to another. Even a single bad experience could lead to a customer never shopping from your brand again. This is why it is so important to create an excellent customer experience that leaves customers satisfied and keeps them wanting more.

The Challenges to Customer Experience (CX)

Let’s take a look at the five key challenges to CX and the ways in which they can be overcome to deliver exceptional experiences and win customer loyalty: 

  1. Organizational Data Silos
  2. Achieving a Centric Culture Culture
  3. Outdated CX Analytics Tools 
  4. Effective Personalization for all Customers 
  5. Prioritizing Customer Pain Points

(1) Combatting Data Silos

A key challenge to the customer experience is posed by organizational data silos. When data isn’t properly unified and structured, employees don’t have access to the full picture while analyzing the data. By having all your data in one place, you enhance overall data quality by revealing powerful and accurate insights that would not have been possible to find within siloed data. 

Solution: Employ an omnichannel analytics platform. 

A great way to combat data silos is to employ an omnichannel analytics platform that stores all gathered data, from all channels, on a single unified interface. Such software helps brands acquire actionable insights from their data in real-time to understand what exactly may be impacting their key performance metrics (KPIs).

(2) Developing a Company-wide Customer Centric Culture

Another common CX challenge facing organizations is creating a customer-centric culture across all departments and teams. In order to provide a great customer experience, you must first put yourselves in the customer’s mind to understand their wants, pain points, and behavior. By having this understanding of your customers, you can ensure that decisions are made with the customers’ best interests at heart. 

Solution: Share CX data with relevant departments and teams. 

In order to create a company-wide culture that is based on customer centricity, it is integral to share the gathered CX data and insights with relevant groups and individuals within the organizations. When every department within your organization has access to relevant data and insights, it enables them to optimize touchpoints with customers’ preferences and pain points in mind. 

(3) Outdated CX Analytics Tools

With technology developing at a rapid rate, there are constantly new and updated tools that can be leveraged by organizations to measure, analyze, and improve customer experience. For instance, certain customer intelligence platforms leverage the power of AI and ML to gather and analyze CX insights in real time. By continuing to employ outdated tools, you place yourself at a disadvantage to your competitors who could be utilising advanced analytics tools to elevate CX. 

Solution: Keep an eye out for new technology and update software/hardware when required. 

It is important to stay updated on new software and technology for customer experience. You can do so by following reliable websites, social media pages, or even blogs that produce content about customer experience. These pages will provide updates on new technology and analytics platforms that can be used to understand and elevate CX so that you can explore new technology and employ the tools that are likely to benefit your organization. 

(4) Effective Personalization for all Customers 

In the last couple of years, it has become extremely apparent that customers love receiving personalized experiences. Epsilon found that “80% of consumers are more likely to make a purchase from a brand that provides personalized experiences”. Personalization, therefore, has an extremely powerful impact on customer experience and companies that fail to provide personalized experiences risk losing their customers to competing firms. A common challenge while trying to provide personalized experiences is delivering these unique experiences at scale, to all customers of the organization. 

Solution: Use the Right Customer Segmentation Platform. 

In order to provide personalized experiences at scale, you must employ technology that can effectively create customer micro-segments based on shared customer characteristics. Once these micro-segments are created, you can tailor unique recommendations, marketing messages, and experiences for each unique group. 

Voxco Intelligence provides you with an effective customer segmentation solution.

(5) Prioritizing Customer Pain Points 

Different customers have different pain points and different issues along their customer journey. The list of customer grievances is almost never-ending, making the task of prioritizing CX issues a very important one. By finding out which problems are more urgent and must be acted on first, you can prevent customer attrition and keep your customers satisfied. 

Solution: Use Journey Analytics to Measure the Impact of Various CX Issues.

Customer analytics and customer intelligence solutions can help you extract insights and quantity the impact of various CX issues so that you can prioritize them using a data-driven approach.

FAQs on Customer Experience Challenges

Customer experience refers to customers’ perception of an organization based on their compounded interactions with a brand across all touchpoints within their customer journey.

The customer experience you create will influence customer loyalty, customer attrition, brand advocacy, and your CLV. By failing to provide a great customer experience, you risk losing your customers to your competitors and damaging your bottom line.

Some key challenges to building a great customer experience are: 

  • Combatting Organizational Data Silos
  • Developing a Company-wide Customer Centric Culture
  • Outdated CX Analytics Tools 
  • Effective Personalization for all Customers 
  • Prioritizing Customer Pain Points

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