Feature
The Gist
- Rising consumer expectations. 77% of businesses recognize increased consumer expectations for digital engagement, highlighting the critical importance of a positive digital customer experience (DCX).
- Personalization and AI. AI and machine learning are key in delivering hyper-personalized, efficient customer experiences, revolutionizing how brands interact with consumers across digital platforms.
- Omnichannel integration. A seamless, consistent experience across all channels is vital, with brands focusing on integrating various platforms to provide a unified customer journey.
As we merge into the new year, digital customer experience (DCX) stands at a transformative crossroads that has been shaped by rapid technological advancements and changing consumer behaviors. Brands are increasingly leveraging artificial intelligence (AI), machine learning (ML), and data analytics in order to provide personalized, seamless, and proactive experiences across a variety of digital touchpoints. This article will examine the current state of DCX, highlighting the innovative strategies brands are embracing, the challenges faced, and the emerging trends that are defining the future of digital customer engagement.
The Importance of DCX in 2024
The importance of DCX in 2024 is a result of it being a core element of today’s society. As digital technology became even more integrated into everyday life, customers learned to expect not only seamless, intuitive and efficient online interactions but also personalized and engaging experiences across all digital touchpoints. The quality of the digital customer experience now directly impacts brand perception, customer loyalty and business success.
Frank Schneider, VP and AI evangelist at Verint, a customer engagement and analytics solutions provider, told CMSWire that Verint’s State of Digital Customer Experience Report found that 77% of businesses say consumer expectations for effectively engaging with them digitally have increased over the past 12 months. “Meanwhile, 69% of consumers have stopped doing business with a company after just one poor experience.” This reinforces the idea that not only are positive customer experiences important, bad experiences are a death knell for business.
A superior digital customer experience is a key differentiator for businesses in 2024. It's not just about providing a service or selling a product; it's about creating a journey that is as efficient, enjoyable and meaningful as possible. Brands that understand and adapt to the ongoing technological advancements and changing consumer expectations are more likely to succeed in attracting, satisfying, and retaining customers.
Related Article: Findings From the 2024 'State of Digital Customer Experience' Report
The Evolution of Digital Customer Experience
The evolution of DCX is a fascinating journey that is marked by rapid technological advancements and continually changing consumer behaviors. In its early stages, digital customer experience was primarily about establishing an online presence, with businesses focusing on creating websites and basic online services. The interaction was mostly one-way, and the digital experience was often a mere digital version of a catalog of services or products.
Lina Lugova, CMO at Epom, an ad tech company, told CMSWire that today, DCX is important even for those niches and businesses usually considered offline, like banking, medicine and the service sector (restaurants, beauty treatments, etc.). "Every business now should have an online presence since the first user contact with a business usually happens through digital channels. The same goes without saying for digital products and services," said Lugova.
As technology advanced and became more widespread, the focus shifted toward making these digital interactions more efficient and user-friendly. Businesses began to invest in better web design, usability and the early stages of personalization. The introduction of ecommerce platforms revolutionized how people shop, leading to a greater emphasis on online customer service and transactional capabilities.
The proliferation of mobile devices brought about the next significant shift. With smartphones becoming ubiquitous, the expectation for constant connectivity and on-the-go access to services led to a more mobile-centric approach. According to Statista, the number of worldwide smartphone mobile network subscriptions is projected to exceed 7.7 billion by 2028. More importantly, in a 2021 report titled "The Global Smartphone," a team of researchers from University College London documented how people interact with and rely on their smartphones. The report determined that the smartphone is best understood as the place “within which we now live.” With this commonality of the mobile experience, businesses started optimizing their digital experiences for mobile devices, focusing on responsive design and mobile applications. The customer journey began to fragment across multiple devices, necessitating a more integrated and consistent omnichannel approach.
The ever-present nature of social media further transformed the digital customer experience by making it more interactive and social. Customers used these platforms to share their experiences, opinions, and reviews in real-time, influencing brand perceptions and decisions of other potential customers. Businesses started to use social media not just for marketing, but as an important channel for customer service and engagement.
Additionally, the emphasis on customer experience has shifted from transactional interactions to creating meaningful and emotionally resonant experiences. The “experience economy” is now driving businesses to create memorable and immersive digital experiences that delight customers and foster loyalty.
Related Article: 5 Digital Customer Experience Trends for 2024
Consistent Personalization
Data analytics and AI are playing pivotal roles in crafting tailored experiences, forming the backbone of modern personalization strategies, and enabling businesses to understand, predict, and respond to individual customer needs and preferences with an unprecedented level of precision.
Eric Guarro, SVP of digital transformation at ibex, a digital CX outsourcing company, told CMSWire that the digital customer experience is quickly evolving with the use of generative AI. “In 2024, we see a tremendous opportunity to leverage AI to deliver next-level, hyper-personalized and intelligent interactions that foster stronger connections between brands and their customers,” said Guarro. “As the amount of consumer data that's available grows exponentially, businesses can become hyper-focused on the things that are important to their target consumer and connect that consumer to their brand through highly predictive analytics.”
Using data analytics, brands are able to collect a vast array of data from various digital touchpoints, including websites, mobile apps, social media and more. This data might include user behavior, transaction history, browsing patterns and personal preferences. Through analytics, businesses uncover valuable insights about customer segments, identify trends, and understand the effectiveness of their digital platforms and strategies.
Once insights have been gathered, businesses use this information to segment customers, predict behaviors, and tailor digital interactions. For example, analytics might reveal that a certain segment of customers prefers video content over text or tends to purchase certain types of products together. Businesses use this information to customize the content, layout, and recommendations that are presented to different users, making the digital experience more relevant and engaging.
AI takes personalization a step further by enabling real-time, automated decision-making and personalization at scale. AI algorithms, powered by ML, learn from each interaction and continuously improve the personalization strategy. They make instant recommendations, predict customer needs before they arise, and automate responses to common inquiries, all while adapting to changing behaviors and preferences.
For example, AI recommendation engines are able to suggest products or content based on a user's past behavior, similar users' behaviors, and other contextual factors. Chatbots and virtual assistants, also driven by AI, provide personalized customer service by understanding natural language, accessing the customer's history, and providing tailored information or solutions.
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Matt Tippets, SVP of product at Drift, an AI-powered buyer engagement platform provider, told CMSWire that in 2024, generative AI enables brands to finally cross the chasm from personalization to individualization. "The issue with the most common personalization is that it doesn't target what a customer needs right then and there,” said Tippets. “Yes, they have a name, a zip code, a company they work for and maybe a favorite color that businesses can take into consideration, but none of that represents what the customer really cares about when they interact with a chatbot or a brand."
An Increasingly Omnichannel Presence
Brands are increasingly recognizing the importance of a seamless, consistent experience across all of its channels and platforms. Integrating experiences across various omnichannel platforms is crucial to meet customers where they are and provide a unified brand experience, regardless of the channel or device. This integration involves several strategic and technological considerations.
Many brands today are adopting a customer-centric approach, focusing on understanding the customer journey in its entirety, from the first point of contact through to post-purchase interactions. This involves mapping out all the touchpoints a customer might encounter and ensuring that each one reflects the brand's values and meets the customer's needs. The goal is to provide a consistent look, feel, level of service, and experience, whether the customer is shopping online from a mobile device, browsing in a physical store, or engaging through social media.
Technologically, brands are investing in the robust digital infrastructure that allows for the seamless sharing of data across channels. Centralized customer relationship management (CRM) systems, customer data platforms (CDP), data management platforms, and other integrated software solutions are enabling businesses to maintain a unified view of the customer. These systems collect and synchronize customer data across all touchpoints, allowing for more personalized and consistent interactions. For example, if a customer adds items to a cart on a mobile app but completes the purchase on a desktop, the transition should be seamless, and the experience should be consistent.
Additionally, brands are focusing on the interoperability of their channels. Customers are routinely having phygital experiences, and expect to move smoothly between online and offline channels, such as buying online and picking up in-store, or receiving customer support through chat and then over the phone. Brands are, therefore, ensuring that all channels are connected and that information flows freely between them, enabling more fluid and flexible customer journeys.
Speed and Convenience
Speed and convenience are critical factors in the DCX, significantly influencing customer satisfaction, loyalty, and ultimately, business success. In today's fast-paced digital world, customers have come to expect instant access to information and services. They value quick, easy, and efficient interactions that allow them to achieve their goals with minimal effort. This emphasis on speed and convenience is a response to the broader societal shift toward immediacy and efficiency, driven by technological advancements and changing lifestyles.
Speed in this context refers to how quickly customers can navigate a website or app, find what they're looking for, and complete transactions. It also pertains to the responsiveness of customer service channels and the time it takes to resolve issues or inquiries. Slow load times, complicated navigation, and delayed responses can lead to frustration, cart abandonment, and a negative perception of the brand.
Convenience, on the other hand, relates to the ease with which customers can access and use digital services. This includes intuitive design, simple processes, and features including one-click ordering, saved preferences, and easy-to-access customer support. It's about reducing friction and making the experience as effortless as possible.
A focus on speed and convenience aims to minimize the effort customers must exert, thereby improving the Customer Effort Score (CES), a metric used to measure the ease of customer interaction and resolution of their issues with a company. By streamlining processes, optimizing load times, and simplifying navigation, companies can reduce the friction customers face in accomplishing their goals. Similarly, by providing efficient customer service and ensuring quick resolution of issues, brands can further reduce customer effort.
Data Privacy and Security
Brands today are navigating the complexities of data protection laws and customer expectations with heightened vigilance and strategic adaptation, recognizing that data security and privacy are integral to DCX. As data breaches became more common and consumers became more aware of their digital rights, trust and transparency have become central to customer relationships.
Erik Pham, CEO of HealthCanal, a media company in health and wellness, told CMSWire that as businesses increasingly leverage AI and data analytics to enhance customer engagement, it is important to remember that data privacy and consumer consent are essential. "In the digital realm, where vast amounts of personal information are processed, customers are becoming more aware of how their data is used,” said Pham. “Therefore, the future of customer engagement will see a heightened commitment to data privacy and transparent communication regarding the use of customer information."
To comply with an ever-growing number of data protection laws, such as the General Data Protection Regulation (GDPR) in Europe, the California Consumer Privacy Act (CCPA), and other global regulations, brands are investing in robust data governance frameworks. These frameworks ensure that data is collected, stored, and used in compliance with legal requirements. They involve regular audits, updates to data policies, and training for staff to understand the implications of these laws on day-to-day operations.
Brands are also implementing more sophisticated security measures to protect customer data from breaches and cyberattacks. This includes encryption, secure data storage solutions, regular security assessments, and contingency planning for data breaches. They understand that a single data mishap can lead to significant financial penalties and, perhaps more critically, lasting damage to the brand's reputation. New SEC rules that require immediate disclosure in the event of a data breach are also taking effect this year, prompting brands for greater transparency in their security measures.
Additionally, as Google phases out third-party cookies, brands are significantly reevaluating and adjusting their DCX strategies. The end of third-party cookies represents a shift toward greater privacy for users but also poses challenges for businesses accustomed to leveraging this type of data for targeted advertising and analytics. To adapt, brands are focusing more on first-party data, which is information collected directly from their customers through interactions such as website visits, app usage, and direct purchases.
"Establishing and maintaining trust will be paramount, with businesses adopting stringent measures to ensure that customer data is handled ethically, and explicit consent is obtained before implementing personalized experiences," said Pham.
Accessibility, Diversity and Inclusion
Ensuring that digital experiences are usable and enjoyable for all, and emphasizing diversity and inclusion, is paramount in DCX today. As society becomes increasingly aware of and vocal about issues of equity and representation, customers expect digital services to be accessible and accommodating to a diverse user base. This expectation reflects a broader commitment to creating a digital environment where everyone, regardless of ability, age, gender, race, or other factors, can have positive and meaningful interactions.
Patti Mulligan, VP and director of digital experience at 9Rooftops, a digital marketing agency, told CMSWire that accessibility should never fall out of the limelight. "With 1 in 4 Americans having a disability, it is imperative for all users to be able to access websites. By Implementing ADA guidelines the benefits to companies are great as accessibility fosters inclusivity and quality, expands audiences, builds brand image and reputation, and prevents costly litigation," said Mulligan.
Diversity and inclusion in DCX mean designing digital products and services that are not only accessible to people with disabilities but also resonate with diverse cultural, linguistic and demographic groups. It's about understanding and reflecting the full range of human diversity in digital offerings. This includes considering different languages, cultural norms, age groups, and ensuring that content is sensitive and inclusive in its imagery, language and user interactions.
Final Thoughts
In 2024, DCX is defined by rapid innovation, driven by emerging technologies and tempered with a heightened focus on ethical implications. While personalization and omnichannel consistency hits new heights, brands continue to walk the line between customization and privacy. As digital experiences cater more specifically to individual customers' needs, they also strive for accessibility, diversity and inclusion. Brands must continue balancing convenience and engagement with transparency, security, and social responsibility to improve the customer experience, and earn consumer trust and loyalty.
