Learn how to use evolving CX trends and advice from industry experts to future-proof your business from changing conditions. Read online at Feefo.
Unprecedented, uncertain and challenging. Just a few adjectives that can describe the last few years in the wake of the COVID-19 pandemic. While many things have paused or shut down, there has also been a great acceleration in innovation — both in business and science. The need to meet changing customer expectations and transform digital experiences became a real-time event, coming to fruition in a matter of weeks and months, rather than years
Customer experience (CX) has been at the forefront of this changing dynamic between brands and their customers. We even wrote a guide on how to improve your brand's customer experience quickly to help businesses struggling post-Covid. The expectations have changed from what customers ‘want’ to what they absolutely ‘need’ - and the acceleration in innovation has been driven by each company’s own need to keep trading and, ultimately, to stay in business.
Businesses large and small have had to become more agile, more flexible and more empathetic, taking care of both their employees and their customers. The way in which we think, do business and work will continue to evolve, with even more digital transformation on the horizon.
With this in mind, let’s take a look at some of the CX trends predicted by Feefo and leading industry experts.
1. Agile CX strategy
No one could foresee the full effect of the pandemic, but companies that were reactive and adapted successfully were the ones who maintained their operations and met their customers’ changing needs with efficiency and effectiveness.
Many UK firms, large and small, were reactive and creative in developing more hygienic ways to keep their customers safe. Asda, for example, became the first supermarket in the UK to roll out autonomous cleaning robots helping prevent the spread of COVID-19.
Businesses will continue to transform their approach to CX in the future by adopting reactive strategies that put customers’ personal experiences at the forefront of their operations.
Ash Finnegan, Digital Transformation Officer at digital document management experts, Conga:
“Companies will have invested heavily in digital technologies as a result of the pandemic and naturally this will be reflected in their future budgets. From now on, companies will prioritise how they can deliver their services more effectively. For example, leaders will consider if there is another way that their company can accomplish the same results with less money or more online tools, or perhaps reconsider where best to apply particular technologies to further streamline their operations. Now is the time for service providers to be more commercially agile, perhaps reconsidering their product line and identifying something more pertinent to what customers need right now.”
2. Relationships over transactions
It’s no longer enough for businesses to deal with customers only on a transactional basis. Customers need to value your brand, beyond a single transaction, and develop a meaningful customer relationship that lasts.
According to research conducted by Edelman, 65% of people will base their future purchases on how well a company responded to the COVID-19 crisis. Many customers would stop using brands that have not acted appropriately, and 90% of consumers want to know what support a business's employees and customers are getting from them.
Compassion, honesty and understanding matter a lot. Brands the world over have shown signs of empathy and alignment with community culture by striving to be a part of the global solution. Guinness’s ‘We’ll March Again’ campaign was met with encouragement and support after its patrons had to cancel St Patrick’s Day parades and celebrations. Big brands like KFC and Pizza Hut were met with praise from the public after they set up relief funds for employees diagnosed with COVID-19.
Paige O’Neill, CMO of customer experience management platform, Sitecore:
“When COVID-19 hit, being an ‘empathetic brand’ meant reaching out to customers to see what they needed and being sensitive to how they might be affected by the pandemic. Now, this has evolved to being able to put customers’ desires, feelings and expectations at the heart of a CX strategy.“
"Macmillan Cancer Support created a new Coronavirus hub that offered users online support and guidance, as well as personalised guide modules that provide curated and more tailored Coronavirus and cancer information. That’s how to connect in an empathetic way, and Macmillan says user engagement levels are up, based on click-through and bounce rates, as well as user feedback.
"Johns Hopkins Medicine was also able to show empathy at scale and immediately respond to the pandemic by providing accurate Coronavirus information in a rapidly changing environment. They used content to power a COVID-19 self-checker, built infographics to inform, and ultimately grew visits to coronavirus content by more than 38 million in just seven months.”
3. Trust, safety and inclusion
According to a Forrester survey, only 13% of consumers trust retailers to provide effective guidance and solutions during the pandemic. The events of 2020 have shaken people across the world, and consumers are looking for new ways to feel safe and seeking brands they can depend on.
It’s not just about making promises; brands will have to deliver on them, experiment with protocol and enforce actions that bring solutions in the eyes of the customer. The expectations will vary depending on the industry. The travel industry is very much focused on restoring consumer confidence, whereas retail has had to try and maintain standards throughout 2020. Many businesses really stepped up their game to support and reassure their customers during the pandemic, something that has become a 'new normal'. People now expect a high level of engagement and customer care as opposed to seeking it.
Many airlines have introduced leniency when it comes to their ticket change fee and hotel chains. Hilton, for example, installed special stickers, wraps and informative guides to help set their guests’ minds at ease while travelling. Keeping customers happy during turbulent times is challenging, but in 2021 you can expect businesses to invest more in implementing processes and procedures that provide security and trust, especially in travel and tourism.
Ian Crawford, Brand Manager of online travel retailer, Holiday Hypermarket:
“Omnichannel has never been more crucial for businesses to connect with their customers. Our engagement stats have gone through the roof in the last nine months, so it’s essential we offer our customers different channels to connect with us. Things won’t revert back to normal overnight, so it’s our job to stay close to our customers throughout the booking journey, and that includes gaining feedback post-holiday to continuously improve. Now is the time that brands are starting to consider trust metrics in the marketing mix.”
4. Shifting customer behaviour
Consumer behaviours have permanently shifted since the pandemic, with fear and anxiety acting as fuel for certain purchase decisions. Customers are adapting to new digital alternatives to satisfy their need for information, guidance and reassurance. Businesses need to provide a seamless experience to reassure customers across all platforms while speaking to them in a language they understand and can trust.
More emphasis will be placed on open communication and multiple channels of feedback to fully understand the customer’s expectations and provide them with what they need. The demand for human interaction versus artificial intelligence seems to be split down the middle, so it’s imperative that businesses look for ways to incorporate a healthy balance between the two. Whether it's their attitude towards travelling, spending, socialising or shopping, the entire world has seen a drastic change. Businesses need to study the new shifts and keep adapting quickly.
Benedict Ireland, Head of Experience at web design and development agency, Splendid UNLIMITED:
“Consumer behaviour has necessarily changed, and will continue to do so. This creates a shift in demand and, therefore, fulfilment. Grocers were suddenly overwhelmed — click-and-collect and home delivery have been around for years, but the sudden change in demand was unprecedented. Banking saw the largest shift to digital channels since they became available. These are consumer behaviours that the high street has been trying to change for years, and suddenly, overnight those shifts happen through necessity. As consumers have begun that exodus to digital, we expect it to be mostly a one-way street — for many, there will be no going back.”
5. Digital experience (DX)
As we start to trade physical connections for virtual interaction, digital technology has become an essential part of post-COVID life.
More than 40% of UK consumers say they purchase more online now than they did in 2019, and a fifth of them would like to interact with brands through an online channel. 84% of global consumers use digital channels like social media, websites and apps more frequently than they did last year, so the shift to digital is real and not going to slow down any time soon.
Restaurants across the world have adopted contactless methods to enable their customers to browse their menus and place orders using their mobile phones. The use of QR codes has significantly increased across the UK and US since the pandemic, with seamless integration between different apps, platforms and devices. Customers want a smooth transition between every platform and expect information to be available at the click of a button.
Brands must reconsider their digital strategies and consider that much of the COVID-driven consumer behaviour may be here to stay.
Ian Golding, global customer experience specialist at Customer Experience Consultancy:
“Digital technology has been increasingly significant for the last ten years – 2020 saw an even greater acceleration in the adoption of technology as the need to make products and services more accessible became essential as customer mobility decreased. This trend has continued post-pandemic and will hopefully be supported by increased awareness of how technology should be used to improve the customer journey — rather than technology being adopted in isolation of the customer journey.”
6. Data privacy and consolidation
The pandemic saw a number of data breaches and threats to cybersecurity across the world. Almost half the businesses in the UK were reported to suffer from a cybersecurity breach, many experiencing an issue on a weekly basis. From phishing attacks to viruses, malware and ransomware, a data breach can cost companies millions of pounds a year and many customers too.
With more people working remotely, the use of cloud-based storage and security has increased. The UK’s cloud adoption rate is currently at 88%and the industry predicts a steady rise over the coming years. 44% of UK consumers will stop transacting with a business after a security breach. In 2021, customers will be turning to companies that assure them of their privacy and respect their data in ways never asked for before.
Josh Schoonmaker, Senior Director Strategy at digital experience platform Commerce, Episerver:
“The last few years have proven just how complicated the concept of privacy is in a digital-empowered world. One useful way of exploring the space is to separate out the arenas of legal privacy and perceived invasiveness. While GDPR, Privacy Shield and CCPA have brought far more explicit guides to privacy, only very recently have the distinctions behind privacy towards compliance and privacy toward customer experience been fully explained.
“Retailers worried about privacy concerns related to personalisation can rest assured that compliance adherence is rapidly getting coded into most cloud and software solutions. The real issue we’ll see now and in the next 12 months will be meeting customer expectations around the perceived level of intrusiveness.”
7. Data science and AI innovation
We will see the proliferation of data continue exponentially, with more connected devices, more people online and more digital consumption. This will lead to a boom in advances in data analytics, data science, AI and data democratisation. Consumers can expect exciting things coming from businesses that implement new data-driven CX strategies.
Here are some data trends businesses can expect to focus on:
- Data and AI democratisation: Businesses and customers alike are seeking an open, honest and transparent outlook when it comes to data sharing and the democratisation of data and technology. More businesses are looking to adopt open-source data and code, pre-existing plugins and intuitive tools that sustain a shared economy.
- Segmentation of data: Businesses will be expected to target each demographic of customers differently and market to them appropriately based on customer data. Grouping data together and identifying patterns according to location, age, marital status, income and education will help businesses maximise the value each customer brings and provide them with what they need.
When executed efficiently and used appropriately, data science will help businesses in 2021 to adapt their business operations to enhance customer experiences.
Richard Roberts, Vice President, UK & I and Northern Europe at telecoms network operators, Mitel:
“Since the beginning of the pandemic, many businesses have ramped up their digital capabilities in an effort to drive customer engagement and ensure business continuity. Our recent research into the impact of COVID on consumer behaviour revealed that nearly half (45%) of UK consumers have increased their use of online customer service during the pandemic and, of that number, more than 73% will rely more on digital options going forward.
This will drive faster adoption of artificial intelligence (AI) and predictive analytics, with businesses looking to bundle AI-powered chatbots and agent-assist technologies with contact centre platforms to create more personalised and seamless online experiences. As AI becomes more widely used, virtual assistant apps will become easier to train and deploy, enabling smaller businesses to compete more successfully with larger brands when it comes to customer experience.”
8. Hyper-personalisation
The term ‘hyper-personalisation’ relates to the use of data to provide more personalised and targeted products, services, and content. This level of personalisation goes beyond the traditional methodology in that it allows organisations to drive personalised customer experiences in real-time.
The modern-day consumer uses multiple devices, often 2-3, such as smartphones, laptops or wearable tech. These devices help businesses gather lots of useful information about customer lifestyles and online behaviour. Harnessing this data to implement personalised customer experiences across the purchase journey is the key to brands achieving hyper-personalisation.
There were many great examples of hyper-personalisation during the pandemic. In fact, 73% of customers expect a personalised experience from a business as standard and feel that many companies are not doing enough in these efforts to customise it for them.
Richard Robinson, Managing Director, Econsultancy:
“Data is central to everything, and the way in which this data is owned, used, analysed, and manipulated by data analysts, scientists, engineers and marketers will become the defining hallmark of whether a business survives or thrives. Hyper-personalisation and the ability to conduct millions of relationships in real-time, guiding, supporting, and predicting the thought process of a human being faced with the binary choices they see on a screen will become the epicentre of CX.”
9. Evolution of chatbots
Chatbots have revolutionised the way businesses deal with customers, helping them cut operational costs by up to 30% in recent years. However, the pandemic has shown us the importance of human interaction and the need to combine AI technology and humans to achieve a greater depth of customer experience, while gaining operational efficiencies.
In the past, the likes of insurance giants Zurich UK successfully used chatbots to boost customer satisfaction, by gathering feedback and meeting customer demands through this automated digital user experience.
Businesses are predicted to develop more seamless integrations between chatbots, live chat and call centre support, with the introduction of humanoid avatars also predicted.
Roger Beadle, CEO of gig CX platform, Limitless:
“Chatbots as we know them will die and we’ll see more humans in the loop: AI adoption will increase by improving the effectiveness of a blended chatbot/human model. 2021 will be the year where automated and human interaction comes together to improve CX journeys for customers. With more humans in the loop reviewing automated responses, customers will also experience significantly higher levels of accuracy in the answers they receive. This will enable companies to train and maintain the accuracy of their AI algorithms at higher confidence levels.”
10. Authenticity and transparency
A study by Forrester shows that people base their trustworthiness of a company on its integrity, capability and transparency. Businesses need to earn customers’ trust, and this starts by conveying an honest message from top to bottom. Transparent pricing is key, especially when customers have a world of choices available to them at the click of a button.
Engaging in real conversations online, keeping up-to-date with industry trends and offering advice and solutions in a timely fashion will go a long way.
Today’s consumer is mindful of where products and services are sourced and aware of unethical practices. Both employees and customers expect transparency and successful companies are creating online communities both internally and externally. These digital environments are a place where employees and customers can share ideas, provide feedback and have open and two-way conversations. They establish a culture of trust and accountability throughout the business and provide a platform for authentic engagement. Today's customers — especially Millennials and Gen Z — want to contribute in a meaningful way.
11. Employee experience (EX)
HR leaders across the world are relooking at the business culture they can offer future employees and what steps they can undertake to revamp existing work culture and employee experiences in a post-COVID world.
The number of people working from home in the UK has increased, and the trend seems to be steady over the next few years. Staff are happier without having to worry about the commute, flexible working and a better work-life balance. Businesses need to look at automating a number of tasks to provide support for their workers, no matter where they are, and think about what it means for career growth and management.
Customers will also be experiencing a shift in how they manage their own work alongside life as they navigate the balance. They will be seeking brands that make this merger of personal and professional a bit easier and more seamless. Employees at all levels and departments need to be trained on how to deliver a consistent message to customers.
Ian Golding, CCXP, global customer experience specialist, Customer Experience Consultancy:
“Businesses who have survived 2020 have done so largely down to the commitment, passion and persistence of their people. The significance of the employee experience will continue to grow as more and more businesses recognise that the way they treat their people has a material effect on the way their people treat their customers. Customers desperately need to feel empathised with — especially in times of stress — that can only happen if a business empathised with its employees first.”
12. Video will transform customer engagement
53% of consumers want to see more video content from the brands they follow. The pandemic might have put a hindrance on live sport and entertainment, but it’s accelerated the push for online video. UK consumers have increased their spending on video streaming services, watch more social media videos and have shown more interest in video-on-demand.
Videos allow customers to ‘see’ your brand in ways they otherwise may not be able to from wherever they are. As more people are turning to online experiences, video provides them with a 360-degree view of your offering and engages other senses like sound and visuals to make the experience more memorable. That said, with up to 92% of consumers now watching video with the sound off, changing consumer patterns and behaviours need to be considered by all, which is why there has been such a rise in the introduction of subtitles and annotations over the last few years.
Most importantly, the pandemic has accelerated the adoption of video beyond entertainment, serving both sales and operational needs. Whether that be the meteoric rise of Zoom, estate agents providing virtual viewings or doctors offering video consultations, video has finally demonstrated its true potential in the commercial world, and beyond.
David Parry-Jones, VP of EMEA at cloud communication platform, Twilio:
“Perhaps no digital channel has been accelerated by the COVID-19 pandemic as much as real-time video. Since the pandemic started, we’ve seen a 500% increase in daily Twilio Video usage and video minutes have almost tripled year-to-date.
In the early days of the pandemic, companies rushed to deploy short-term emergency solutions to enable video. Now they are looking to developers to build long-term video solutions that are more tailored and integrated for optimal user experience. Video is flexible and adaptable to different business needs — whether it’s 1-to-1 customer interactions or group calls — and there’s plenty of room for customisations.”
What can we take away from the pandemic?
The learnings we can take from 2020 will benefit the changing world in which we find ourselves. If anything, 2020 has driven businesses forward at an accelerated rate, laying the foundations for even greater evolution over the next five to ten years. Technology-driven customer experience is at the core of future business success. Those that master the complex — and increasingly proliferated — purchase journeys consumers take will lead the way, while those who choose not to will struggle to compete.
