Informing Responsible AI Through UX Research

AnswerLab

AnswerLab Research

September 1, 2023·10 min

CX strategy is powerful — with potential not only for growth but for missed opportunities and eroding loyalty. Companies need to take steps to implement forward-looking CX practices. This article will share our recommendations for building a future-ready CX strategy that meets today's demands while gearing up for tomorrow.

Why "Future-Ready" CX?

With all the excitement around emerging technology and new customer touchpoints, it can be easy to get swept away in the latest trends without a cohesive strategy. But relying on reactive CX approaches comes with risks. As we develop new customer experiences, we must be aware of the profound shifts in customer expectations and take steps to ensure we're building our future intentionally.

How are outdated CX strategies falling short?

Research shows that 86% of buyers are willing to pay more for great experiences, yet most say brands are falling short. Organizations that rely solely on post-purchase feedback or customer complaints are already falling behind. Reactive strategies can perpetuate and amplify disconnected experiences, missed customer needs, and eroding trust.

There are also potential threats to loyalty due to the rising expectations customers bring to every interaction. There's always a possibility that competitors are already delivering the seamless, personalized experiences your customers are looking for.

The bottom line here is CX strategy is powerful — and there's potential for both incredible loyalty-building or significant churn depending on how proactively you approach it.

We need predictive and preemptive CX strategies.

As customer expectations become more sophisticated, organizations must actively evolve from reactive to predictive and even preemptive strategies, ensuring frictionless experiences that address needs before customers are even aware of them. Developing processes to continuously assess and adapt your CX approach is a critical step towards fostering trust, staying competitive, and building lasting loyalty.

Challenges are inherent in any CX transformation, but they also arise through specific organizational barriers, unintended friction points, and context-specific entanglements across departments and channels. CX is "socio-technical" — it is always entangled with organizational culture, technology infrastructure, and customer interactions through its implementation in specific contexts.

There are a number of trends transforming how customers interact with brands. While there are many interconnections across these shifts, they illustrate how technology and customer behavior are fundamentally changing the CX landscape.

  • Personalization powered by AI to anticipate customer needs and craft hyper-relevant experiences, from customized offers to preemptive support.
  • Omnichannel integration to deliver smooth, effortless transitions between devices, apps, and in-person interactions that drive loyalty through consistency.
  • Conversational interfaces to shift customer interactions from clicks to natural, real-time conversations through voice-first and chat-based experiences.
  • Predictive technology to enable proactive service that doesn't just solve issues but prevents them, transforming frustration into loyalty-building moments.
  • Gamification and creative engagement to redefine CX through playful tactics that elevate user loyalty and expand into traditionally serious sectors.

Overcoming challenges is a critical step in your CX transformation journey.

Now that we've covered an overview of why we need future-ready CX, let's dive into the hurdles organizations face as they start to tackle this question themselves. Addressing organizational barriers is a critical step in your CX transformation. Working across departments helps you understand end-user needs holistically, building better experiences that lead to successful adoption. It also plays a critical role in balancing innovation with empathy, privacy, and trust.

Breaking down organizational silos

Getting teams across departments to work together is crucial for creating a unified experience. Without cross-functional collaboration, even the best CX strategies can fall flat. Often, the people responsible for customer touchpoints are spread across marketing, product, engineering, and support — and you may need to spend extra time considering how to align them around a shared vision. It can be highly valuable to understand how you can better support cross-departmental collaboration and remove the operational barriers that fragment the customer journey.

Balancing AI with a human touch

Automation can improve efficiency, but empathy keeps customers loyal. Embracing AI is critical in the current market, but brands must find the balance and approach AI intentionally to get the experience right. There is a range of approaches here — from fully automated interactions to AI-assisted human support — and diving deep with your customers can help inform where to draw the line.

Scaling personalization responsibly

We recommend thinking carefully about the level of personalization customers want as a way to understand where your users are in their comfort journey. These conversations can help you get a sense of customers' current expectations around data use, helping inform your approach to tailored experiences. For example, if you discover that your customers are highly privacy-conscious, you might need to be more transparent in how you communicate what data is being used and why.

Addressing diverse customer needs

We know that one-size-fits-all approaches can cause unintended friction for specific customer segments, leading to disproportionate gaps in experience quality. This is a place where inclusive research and dedicated engagement with underserved customer groups is of vital importance. When you're thinking about personalization at scale, you must talk to the populations that might be affected and get their input on how to respect privacy while delivering relevant experiences.

As customer expectations continue to evolve, a proactive CX strategy plays a vital role in ensuring your brand stays competitive and builds lasting loyalty. The capabilities of emerging technology are expanding rapidly. It's critical to remember that the focus should always be on meeting customer needs and providing seamless, human-centered experiences.

Check out our related article on CX strategy: What's Your Future-Ready CX Strategy?