Every consumer has a different perception of what excellence looks like: one person’s Google might be another’s Apple. Customers put these companies on a high pedestal. Those that offer a middle-of-the-pack experience, or attempt progress in a piecemeal way, are finding it harder to climb to the top.
Broadridge’s 2024 CX & Communications Consumer Insights report shows 70% of customers think the companies with which they do business need to improve their experiences — a record high. Even though it may seem like success is a steep climb, there are tangible steps every business can take to pull away from their peers.
Here’s what each business leader needs to know to win customers’ hearts — and the competition’s clients.
Transform your CX, and do it quickly
Seventy percent of respondents think the companies they do business with need to improve the customer experience — a sentiment that has doubled since 2019.
At the same time, advancements in technology showed us what a great CX can be.
“Several companies are pushing ahead and setting a higher bar,” says Matt Swain, Head of Communications Insight & Experience at Broadridge. “Companies that do nothing, or make incremental changes, aren’t going to keep pace. They need to think differently.”
To gain ground, companies need to adopt a transformational mindset.
Talk AI to Gen Z
“Younger generations are more likely to experiment with new technology, and that proves out with Gen Z’s embrace of GenAI.” Some 76% reported using it in the last year, with 46% stating that it has improved their overall experience — the highest of any age group.
Gen Z respondents are also more comfortable with the implementation of GenAI in CX. Gen Z respondents are:
- The least concerned about having their data compromised due to AI (58%)
- The second-most comfortable group, behind Millennials (56%), to provide their personal information to a virtual assistant (51%) for a more personalized experience
- Most likely to say AI has improved their overall customer experience (46%)
Data security remains a concern
Roughly a third of consumers have security concerns across several elements of the customer experience. For instance, 82% of respondents want more transparency from companies about how their data is used. Forty-three percent said they stopped doing business with a company because of a data breach.
However, as consumers continue to crave a better customer experience, 54% are willing to share their personal data if it will result in a better experience — be it digital signatures, more customized communications, or other features.
Companies that invest in cybersecurity are positioned to reap rewards: 64% of consumers are more likely to engage digitally due to advances in data security. Features such as facial recognition and digital identity would help 30% of customers feel safer engaging with companies online. A third would also go paperless with increased security and privacy measures – good news for companies looking to reduce costs.
Personalization matters
Ninety percent of consumers say it’s important for companies to honor their preferred communication method, but only 31% think that companies are getting the job done.
The downsides to getting personalization wrong are high. Forty-five percent of customers are willing to walk away from companies that do a poor job of personalizing. Considering 60% also judge a company on the communications they receive, few companies can afford to fumble their personalization efforts.
Getting it right can start with some basics: don’t make customers validate their identity each time they interact with a different part of your company, offer customizations based on what you know about them, and send them communications on the channels they prefer at the right time based on their needs.
To meet sky-high expectations, businesses must move beyond minor improvements and embrace a transformational approach to CX and communications.
Three steps to get you started:
1. Explore AI strategically: Gen Z are comfortable with AI and expect businesses to use it for better customer experiences. But consider AI as a complement, rather than as a replacement for human connection. Use AI for tasks like data analysis or personalization, but prioritize human interaction for more complex issues.
2. Invest in cybersecurity: Customers prioritize data privacy, but they also appreciate the personalized experiences data can enable. Invest in robust cybersecurity to build trust and build encouragement to confidently engage with your digital offerings. Customers will reward you with paperless communications and — most importantly, their loyalty.
3. Personalize relentlessly: Today's customers expect a journey tailored to their preferences. Go beyond demographics: adjust to their communication style and offer relevant customizations across touchpoints. Since personalization errors can lead to a loss of business, invest in a customer engagement and communications platform that gathers and utilizes data effectively while prioritizing robust privacy controls.
Don't settle for offering a mediocre customer experience or incremental improvements — unlock the secrets to success in Broadridge's 2024 CX & Communications Consumer Insights report.