The research highlighted in this roundup points to the myriad challenges confronting companies in the face of an empowered and much more informed consumer base. Across brands and industries, customers are vocal about their preferences—on the channel or medium that they wish to engage with and hear from brands; on how quickly they want complaints and issues to be resolved; on what it takes to retain their fickle loyalties. There are no easy solutions to be found, but continually evolving research can, at the very least, ferret out the questions that remain to point the way forward. Research details follow below.
Idomoo: Consumers Want More Video from Brands
Video is the preferred medium among adult consumers for receiving communications from brands, even though video is hardly ever used to deliver messaging, according to a new study that examined consumer preferences on brand communications.
In a survey of 2,000 adults in the US and UK commissioned by Idomoo, the New York-based provider of large-scale personalized video solutions for enterprises, 62% say they want more video from brands. And among Gen Z and high earners, nearly 80% of these high-value consumers wanted video even more, and are more likely to want those videos to be personalized, interactive, and customizable.
And personalization is important. Compared to generic videos, personalized videos make customers 4x more likely to stay customers, the study shows. Personalized video is deemed as having the best content in making customers feel valued, increasing the likelihood of a brand being recommended. The study also says that video shines when it comes to communicating complicated information, such as when a brand needs to explain complex elements or details of a new program or service.
Despite consumer interest, video, particularly advanced video, is severely underused as a communications tool, the study reveals. Nearly 75% of respondents say they rarely or never receive video from brands.
“Companies think they’re using video to its full potential, but most aren’t using it to communicate with current customers, despite consumer demand for it,” says Yotam Benami, chief marketing officer (CMO) at Idomoo. “That untapped demand—especially for advanced video functionality among high-value demographics—is an opportunity for brands to capture attention and improve their CX.”
Mitto: Consumers Desire Quality Customer Support in Banking
The vast majority of consumers want high-standard customer support in banking, as it is the best indicator of the quality of financial CX, according to the results of a survey from Mitto, the Zurich, Switzerland-based provider of omnichannel communication solutions for customer engagement. More than two-thirds of survey respondents say they experience average or positive CX when banks prioritize customer support, whereas poor customer support is the biggest factor (33%) in a negative experience, followed by bad communication methods (24%).
Approximately 90% of consumers also say that banks must possess the capabilities to converse with customers on their preferred channels, from SMS text to chat apps and social media. For quick and spontaneous interactions, almost half of all respondents (46%) favor SMS text messaging, compared to email or phone calls.
Two-factor authentication (2FA) is likewise gaining prominence and becoming a key component of quick security, with 75% of respondents’ banks using 2FA as a security element. Nonetheless, customers want banks to incorporate additional security, including SMS identity confirmation for large purchases, to make them more comfortable when they purchase online.
“It’s clear that brands need to continue to evolve how they communicate with their customers to ensure a positive experience,” says Andrea Giacomini, CEO of Mitto. “By partnering with the right solutions provider, financial institutions can access technology that enables them to interact with customers on their preferred channels, support real-time interactions and ensure quick response times, which our survey indicated to be top consumer preferences in delivering a positive customer experience.”
Verint: Speed and Ease of CX Could Determine If Customers Stay or Defect
Consumers deem in-the-moment responses and effortless resolution when engaging with brands as essential elements of good CX, and failure on these two fronts could cause customers to defect to another brand, according to the report The 2022 State of Digital Customer Experience from Verint, the New York-based provider of customer engagement management and business intelligence solutions.
The report’s findings, based on the results of a survey of more than 2,000 U.S. consumers aged 18 to 75, show that 78% of consumers are more likely to be repeat customers if they experienced good CX on a digital channel, while 64% jumped to a competitor following poor CX. More than two-thirds (69%) of consumers rank brands responding quickly as the most important or second-most important aspect of good CX, with more than half (55%) agreeing that “effortless” customer experiences are also vital.
The report also reveals several sticking points among consumers with customer service efforts. Consumers typically make multiple attempts to get their questions answered, and find having to wait on hold much more frustrating when a company does not understand their interests and conducts mass-marketing to them. The most damaging characteristic to brand loyalty is the amount of effort needed to obtain resolution (34%), followed by long hold times (25%) and bad bot experiences (22%).
“Customer patience is wearing thin,” says Heather Richards, vice president of go-to-market (GTM) strategy at Verint. “Brands have had more than two years to rectify issues relating to high volumes of inbound calls, messages, and queries. Customers now expect swift, effortless engagement on their channel of choice.”
LiveXchange: CX Buyers Will Consider GigCX Workers, But Concerns Remain
More than half (51%) of all CX buyers are willing this year to consider using gig-based customer service to manage operational inefficiencies in contact centers, but concerns about security and legal liabilities remain. The use of so-called GigCX workers was the most notable finding of a survey from LiveXchange Technologies, the Canadian provider of a remote contact center platform that enables a virtual, on-demand workforce.
Companies that adopt GigCX have access to a readily available, on-demand pool of agents with specific domain expertise who can be activated when customer demand increases, remarks Terry Rybolt, chief revenue officer at LiveXchange.
But while many CX executives recognize the benefits to be obtained from using a GigCX workforce, there is also a struggle to understand the best way to fit such a model into a company’s delivery strategies. Moreover, CX enterprise decision-makers are concerned about security and legal factors surrounding the deployment of gig workers, according to the survey. Participants in Australia, the UK, and the US identify security as a significant problem, while legal matters are the principal inhibitor for respondents in France, Spain, and Canada.
Even so, CX management is rapidly evolving, and CX executives that pivot quickly to adapt to the market will find the most success, the survey notes. “GigCX should represent a part of the transformation for organizations that want to gain a fresh foothold on the market,” Rybolt points out.
Amperity: Customer Data Challenges Translate to Missed Opportunities and Lost Revenue
A majority of company decision-makers lack a cohesive strategy in making use of customer data they already possess, and repercussions from failing to do so could be grave, warns a new survey of technology executives at customer-driven enterprise companies. The survey from Amperity, the Seattle-based provider of a customer data platform (CDP) for global consumer brands, finds that organizations in the digital economy know customer data is a valuable asset, yet many struggle to put the data to good use.
Decision-makers confirm they have a vast amount of data at their disposal, but more than three-quarters think they underutilize customer data, and two-thirds declare they have difficulty translating customer insights into actionable outcomes.
The survey cautions that businesses failing to address their data use challenges face weighty consequences, with executives naming missed market opportunities (54%) and lower engagement (52%) causing loss of revenue (56%) as ramifications. Companies will then miss opportunities to get ahead of the competition, losing prospective and existing customers if they fail to offer personalized and engaging customer experiences, the respondents say. Lost opportunities and failure to capture market share, in turn, could have a negative impact on employee morale.
The survey calls for taking a holistic approach to data collection and use to create positive CX. “By improving data access and management, organizations can create a 360-degree view of the customer and collaborate to build insightful and compelling customer experiences,” says Barry Padgett, CEO at Amperity. “More satisfied customers and productive employees drive business objectives. Leading brands that optimize customer data will be at a considerable advantage against their competitors.”
Author Information
Alex is responsible for writing about trends and changes that are impacting the customer experience market. He had served as Principal Editor at Village Intelligence, a Los Angeles-based consultancy on technology impacting healthcare and healthcare-related industries. Alex was also Associate Director for Content Management at Omdia and Informa Tech, where he produced white papers, executive summaries, market insights, blogs, and other key content assets. His areas of coverage spanned the sectors grouped under the technology vertical, including semiconductors, smart technologies, enterprise & IT, media, displays, mobile, power, healthcare, China research, industrial and IoT, automotive, and transformative technologies.
At IHS Markit, he was Managing Editor of the company’s flagship IHS Quarterly, covering aerospace & defense, economics & country risk, chemicals, oil & gas, and other IHS verticals. He was Principal Editor of analyst output at iSuppli Corp. and Managing Editor of Market Watch, a fortnightly newsletter highlighting significant analyst report findings for pitching to the media. He started his career in writing as an Editor-Reporter for The Associated Press.
