Six predictions for the future of customer experience

Every provider wants to push ahead with their CX projects, because according to IT analyst Gartner, 81% of managers believe that in the not-too-distant future they will compete solely on the basis of customer experience - and no longer on price. This can present both opportunities and challenges.

1. continuous personalization instead of one-off actions

The CX industry has long since outgrown its infancy. Customers have become accustomed to companies reaching out to them in personalized ways - from personalized emails to product recommendations based on previous purchases. That's why it's becoming important for companies to not only analyze and measure the benefits of CX investments, but also to offer their customers personalized interactions. This is not about scoring points with one-off promotions, but about becoming a company that meets its customers' expectations - all the time.

Some manufacturers of hair care products go one step further than just personalizing sales or marketing: They let their customers put together the contents of the shampoo themselves. On the website, they can select the ingredients, fragrances and active ingredients according to their own wishes. In this way, the company involves each customer individually and turns the purchase of a shampoo into a real experience. In addition, it gains deeper insights with every interaction, which helps it to improve its product and marketing strategies.

2. faster communication through AI

The modern age has created a hyper-connected world of real-time experiences and instant feedback with its smart speakers and home appliances. So it's no wonder that consumers now expect a lot from a company. For example, they want to be able to conveniently interact with customer service around the clock and receive instant answers to problems. To meet these demands, companies are increasingly turning to artificial intelligence. Gartner even predicts that CX will take the largest share of the AI market in 2020. This market was already estimated to be worth 1.2 trillion dollars in 2018.

The chatbot is considered to be the most customer-friendly technology: it is there for customers 24 hours a day and solves almost all problems. This means that limited call center service times and queue music should soon be a thing of the past. Companies will also increasingly rely on social media such as Facebook Messenger, Twitter and Instagram to close the speed gap. By connecting to different communication channels and using chatbots, they will be able to automate and personalize their responses. This means that human employees have to invest less time and are more productive. In the future, the focus will also be on processes that can recognize when a customer is not getting along with a chatbot, for example, and a flesh-and-blood employee needs to intervene. After all, from the customer's perspective, the contact should be smooth and effortless.

3. AR as an essential component of CX

Augmented reality superimposes information and images onto a real environment - this opens up a whole range of new possibilities for product demonstrations and support. Some companies are already following the AR trend. With the prospect of the new 5G mobile communications standard, for which speeds of up to ten gigabytes per second and barely noticeable latency times are predicted, more companies are likely to experiment with the provision of AR experiences.

Augmented reality will play a particularly important role in decision-making and optimizing the customer experience: For example, customers can try out different make-up colors and looks without actually having to put on the cosmetics. They can also see how entire furnishings and sofa sets fit into their own living room from the comfort of their own four walls. AR technology makes shopping easier, more convenient, more attractive and more personalized.

4. x and o data ensure a dynamic experience economy 

Companies will become increasingly successful in generating concrete measures from experience (X) and operational (O) data and integrating them into customer interactions. Thanks to previous communications, relevant information about a customer can be retrieved quickly and precisely. Researching the experiences of buyers and acting on these findings is considered the secret to success in a dynamic experience economy.

Due to the large amount of precise data, companies will continue to invest in predictive analyses in the future and thus optimize their marketing campaigns. One example: the series and film streaming service Netflix collects data on shows watched, browsing patterns and much more, and can therefore provide personalized recommendations based on the tastes of the respective user.

5. the handling of personal data is becoming more complex

To support the growing demand for personalization, companies need to collect more data about their customers. But for some, knowing that a company is storing so much data can be unsettling. Consumers value transparency and honesty now more than ever. As a result, the storage and processing of personal data is now more regulated under the General Data Protection Regulation (GDPR). These developments will be strong drivers for the experience management sector. Companies in the financial, technology, media and healthcare sectors in particular must learn how to reach and understand customers and employees while effectively protecting their personal data.

For example, they can strengthen their security protocols, introduce two-factor authentication or switch to a cloud-based infrastructure that enables more comprehensive data management. Biometric technologies such as facial recognition and fingerprint ID are also increasingly being used to make customers' lives safer and more convenient.

6 CX professionals will be in greater demand

All-rounders who cover many essential CX management tasks will continue to be in demand in the future. However, as CX programs affect all areas of the company, some CX professionals will specialize in areas such as advanced data analysis, experience design, culture change management or even individual technologies that support the customer journey.

While some CX specialists specialize, CX managers cover the three main CX activities: Collecting, managing and translating data into action. As pioneers of the new discipline of "analytics-driven CX design", they are professionals in analyzing and developing suitable measures. They will develop skills that will enable them to completely redesign the customer experience based on data-driven decisions.