Data ethics and privacy are major concerns TO CONSUMERS

• A report filed by CIO New Zealand revealed that customers are increasingly concerned about how brands are using their personal information, both in the private and public sectors. Digital ethics and privacy is a critical concern for consumers using consumer experience platforms.

• In a survey conducted by ClickZ, involving over 5000 consumers and 500 companies across the globe, only 37% of consumers feel confident that their preferred brands have their best interest in mind when accessing personal data. Also, only half of the surveyed consumers are willing to share with brands their personal information, even in the case where the information is used to improve their experience or establish personalized offers.

• In a roundtable held by Econsultancy and Epsilon involving client-side marketers in the field of customer experience, it was found that Hong Kong companies are bound by the strict privacy and data compliance policies, which affect consumer experience improvement.

• During the discussion, one eCRM specialist stated that his company is aware of customer pain points. However, they are unable to introduce initiatives that improve customer experience because they spend most time and resources to justify the methods of data collection they can use without violating the regulations.

Friction in employee-consumer interaction (Lack of employee experience)

• Most companies that have adopted consumer experience platforms focus majorly on external audiences, particularly customers, but forget about the staff who interact directly with the customers. CMS WiRE reported that there is a strong relationship between consumer satisfaction and employee satisfaction; as such, less investment in the employees translates to customer dissatisfaction.

• In the latest PwC report, Experience is Everything: Here’s How to Get it Right, it is stated that excellent customer experience begins with superior employee experience since employees are the ones interfacing with a brand’s potential consumers and creating the expected experience.

• The report cited that almost 58% of all consumers feel that organizations have lost touch with the human aspect of customer experience while only 38% of US consumers think that employees of their brands meet or understand their needs.

Omnichannel strategy results in data silos

• The rapid rise in the adoption of omnichannel strategy by customer experience platforms has resulted in the generation of large amounts of consumer data which has enabled businesses to attain in-depth insight of customers. However, the greatest challenge presented by this opportunity is the collection and storage of this huge data to improve customer experience.

• As customer experience companies continue to implement the omnichannel strategy, many of them continue to silo their data, which only serves as a frustration rather than simplify consumer journey. (source 3).

• In the survey conducted by ClickZ, more than 83% of company respondents reported data silos in an attempt to ensure connectivity. According to the survey, while 86% of companies believe that they can capture customer data in real time, 83% stated that they capture data through multiple systems.

• Without centrally accessing or storing this data, customer experience platforms may miss valuable information about consumers and their purchase behavior patterns which could be used to establish personalized marketing initiatives.

• Silos may also result in data discrepancies across organizational departments, which would, in turn, lead to a disconnection between brands and customers as well as slow response times to consumer complaints or requests.

• What's more, the risk of using or storing data against customers’ permission has heightened with GDPR and the associated fines. Thus, unifying consumer and organizational platforms to operate seamlessly is critical. Lack of visibility and transparency, companies lack the information needed to provide customers with the right information.

• In a recent report by Oracle, many companies end up purchasing a patchwork of products as they attempt to improve customer experience. However, the disintegrated approach only makes data management complex. Business processes such as email marketing, speaking with customer service digitally, and generating sales quotes can only be achieved with single vendor solutions rather than departmental silos.

Consumer expectations are not met

• Over the years, customer experience platforms/products have focused exclusively on technologies and processes, rather than people and humanity. According to Bruce Temkin, the managing partner of Temkin Group, many organizations fail to meet the needs and demands of customers. He claimed that it is not possible for customer experience platforms to understand what motivates customers without having a clear idea of what fulfills their needs.

• In a 2018 Temkin Experience Ratings, it was found that only 8% of 300-plus companies have earned a “good” rating for understanding the emotional needs of their customers.

• In the ClickZ survey, both consumers and marketers admit to the fact that customer experience products do not meet customer expectations. More than half of the consumer respondents agreed that their brands do not understand how to interact with customers in both online and offline platforms.

• Additionally, almost 49% of consumers stated that brands do not meet their expectations to enhance their experience. This trend held true in various countries across the globe with several consumers having difficulty recalling the last time their brands truly impressed them.

Overwhelmed network resources affect the consumer experience

• With customer experience platforms, companies can achieve flexibility and convenience due to network convergence. However, the demand for bandwidth rises as more users exchange data and applications get more sophisticated thereby interfering with the efficiency of the consumer experience platforms.

• Customer experience products operate in an Internet of Everything (IoT) ecosystem which involves several users from different fields such as automotive, security, communications, and other industries using devices like modules, SIMs, and sensors. In addition, the systems involve different connectivity environments, industry-specific M2M services, and enablement platforms; this means more connections, applications, transactions, and services which may result in technical challenges.

• According to CX Network, having a simplistic view of customer experience management may result in failure by having investments that do not contribute to the consumer experience. The process may create poor analysis and insight into customer needs due to a lack of collaboration in the existing metadata that currently exist in department silos.

RESEARCH STRATEGY:

Integration of AI in Customer Support

• According to the 60% of respondents in the User Testing survey, AI will be the most impactful technology trend on customer experience for the next five years.
• Industry forecasts by Garner indicate that by 2020, artificial intelligence and automation will reduce employee requirements in business-shared service centers by 65%. 
• As part of their strategy to keep up with customers'expectations and competition, companies are embracing automation, AI, and machine learning to reduce costs of customer support, increase efficiencies, and improve the customer experience.
• With the increasing demand for ubiquitous customer support, AI assistance is needed in most business environments. Customers expect support from various locations at any given time, and from diverse channels.
• Voice AI devices such as Amazon’s Alexa are shaping corporate interactions and presenting new opportunities for boosting customer interactions. Messaging platforms such as WeChat can potentially benefit companies in areas of customer feedback and knowledge management.
• Medallia, as one of the key players in the customer experience industry, introduced the Experience Cloud; a tool that merges machine and human learning in one platform. With the ability to process large amounts of customer data, Medallia's advanced machine learning capabilities expose useful insights that enable individuals to act and apply strategies to improve customer experience effectively.

Robot Automation Process Gaining Ground

• Currently, companies that have identified the opportunity in Robot Automation Process (RAP) are taking advantage of its ability to improve efficiency and reduce costs through the automation of repetitive tasks.
•  Reduced task burden on employees is allowing them more time to strategize, create, solve problems, interact with customers, and develop strong customer experience.
• With RAP, companies can customize the systems to suit their service delivery model for actions like an automatic response to emails.
•  The Forbes article gives an example of a bank that redesigned its claims process using bots to handle 1.5 million claims yearly. The company employed 85 bots to perform tasks that would otherwise be performed by close to 200 full-time workers and managed to reduce costs by close to 70%.
• Allstate uses Chatbot Amelia, which allows contact center agents to access the latest insurance protocols and regulations while on the phone with customers. It guarantees personal interaction with customers and ensures speedy and efficient service to customers.
• Given their ability to predict consumers’ future behaviors, the application of Robotic Automation Process (RAP) by brands in 2019 will significantly increase.
• As RAP trends gain more ground, market predictions indicate that the market will be valued at $1 billion by 2020, with over 40% of large enterprises having adopted the RAP software tool by then.

Data Management and Ethics

• Data ethics is also a trend that is impacting customer experience. Recently, the EU fronted the General Data Protection Regulation (GDPR), a law that protects customers by giving them the power over their data.
• Under the law, customers have the right to choose their personal information that companies can have and the right to remove their personal information from existing company databases. Companies, which act in violation of the law, risk millions of dollars in fines.
• The GDPR continues to influence how companies across the world handle customer information. More countries are expected to follow the same path even as Europe continues with the roll-out of the law.
•  According to experts, the year 2019 and beyond will see more leaders recognizing need for data protection and information security.

Voice Assistants and Internet of things (iot)

• According to the User Testing survey Report, voice interactions (54%) and Internet of Things (41%) are online trends impacting customer experience.
•  Another survey report by National Public Radio and Edison Research shows that the number of smart speaker owners rose from 18% in 2017 to 30% in 2018. As more consumers embrace voice interactions, brands are exploring the opportunities to connect with their customers in their homes and offices conveniently.
•  Voice interaction, as a trend, is gaining popularity among brands owing to its value proposition advantage in prioritizing customers' data privacy. The trend is set to be a major differentiating aspect that brands will continue to explore to remain competitive in the market.
•  Internet of Things (IoT) on the other hand presents opportunities in increasing connectivity and interactions with customers. Artificially intelligent devices are acting on behalf of humans to improve customer experience.
•  Pixel phones that can make Duplex AI voice calls can be taken as an example. HP’s “Instant Ink” can sense a shortage of ink and automatically order for the same.
• These examples demonstrate the opportunities in IoT to improve customer service and the ultimate experience.

Customer Feedback Management

•  According to the CMO report, customer feedback is the primary driver of the overall customer experience strategy. It informs both the processes involved in executing the customer experience strategy and is also the foundation upon which the strategy is developed.
• According to a report by CMO, Qualtrics, Medallia, and InMoment are some of the key players in customer feedback management.
• Medallia drives customer experience by improving from the top down and the bottom up, bringing the voice of the customer (VoC) and incorporating the voice of the employee.
• Qualtrics, through its 'land and expand' strategy', is evolving and enabling clients to conveniently meet customers wherever they are to collect feedback through a range of channels and locations at any given time.
•  Advancements in customer feedback management (CFM) are currently aiding companies in the compilation, analysis, and measurement of feedback from customers across different channels. The advancements are also aiding companies in distributing feedback and monitoring progress.
•  CFMs facilitate the centralization and automation of Voice of Customer (VoC) programs that are crucial in enabling the customer-centric marketing environment.

YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGIES: