#49 | DCX - Perspectives and insights on digital customer experience
You, Conscious Consumerism, and Better CX; AI Personalization: Customer's Dream or Privacy Nightmare?; Links to Industry news, ideas, insights, and the DCX Thought Leader Linkedin Profile
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You, Conscious Consumerism, and Better CX
Today, I’m diving into 'conscious consumerism.' It's the idea that people like you and me choose to buy things from companies that care about the environment, society, and people. This trend is getting bigger and bigger, and it's actually changing what we expect from businesses and how they treat us, their customers.
So, why is conscious consumerism taking off? Well, there are a few reasons. More and more, people are becoming aware of the world around them. They want to protect the environment and care for people everywhere. Social media also plays a huge part - it helps spread the word fast! And don't forget about the influence of young folks - they're leading this charge in a big way.
This shift is changing what customers expect from companies. No longer is it just about the product or service. They want the real deal - companies being honest and real. They want to know they're acting responsibly, treating people and the environment well. This is changing how businesses interact with customers, from just selling stuff to showing you their values.
So how can companies win the hearts of conscious consumers? They need to be real and show they're ethical. This means being open about what they do and using technology to show they mean what they say. They should also try to be greener and consider how their actions affect everyone involved. And it doesn't stop there - companies need to step up and do good things for society, like treating their employees well and standing up for causes that matter.
Some brands are doing an amazing job at this, and we can all learn from them. Here's a detailed look at a few superstars who are already leading the way and some of the ways they're doing it right now.
Open Communication and Ethical Practices
Being honest and open is key. Patagonia, the outdoor clothing company, does this really well. They show what they stand for on their website and are super open about their efforts to minimize their environmental impact. They even encourage customers not to buy their products if they don't really need them. Talk about putting ethics before profits!
Sustainable Business Operations
The next step for companies is to integrate sustainable practices into their operations. Ever heard of Ecosia? It's a search engine, but not your average one. Every time you search, they plant trees! That's a perfect example of a company finding a creative way to be more sustainable.
Engaging in Social Responsibility
Businesses also need to show they care about society. TOMS Shoes does a great job here. For every pair of shoes they sell, they give a pair to a child in need. They saw a problem - kids without shoes - and made solving it part of their business. View their latest impact report here.
Leveraging Technology for Validation
Companies can also use technology to prove their claims. Provenance is a UK-based startup that uses blockchain technology to help businesses be more transparent. Companies can use their platform to show you exactly where your products come from and how they're made.
These brands are going above and beyond to meet the expectations of conscious consumers. But there's always more to be done! The key is for businesses to keep these examples in mind, learn from them, and find their own ways to step up their game. The more businesses that join this movement, the better for everyone - for you, for them, and for the world.
So, where is this all going? Well, conscious consumerism and customer experience are bound to keep evolving.
Let's jump into the future for a bit! Conscious consumerism and the way customers and companies interact are changing fast. But don't worry! That's good because it means businesses are working harder to meet their changing needs and expectations.
One future trend we see is a more personalized approach to sustainability. This means businesses will start to understand and respect your values even more when creating their products and services. For example, a clothing brand might allow you to choose between different materials with different environmental impacts. It's like customizing your order but for the planet's benefit!
We also see more and more companies using technology like blockchain to show they're being honest and transparent. What's blockchain? Well, it's like a digital ledger that can't be changed. It's a great way for companies to show you where your product comes from and that they're not just making up their claims about being green or ethical.
Virtual and Augmented Reality (VR and AR) could also come into play. Imagine using VR to take a virtual tour of a company's factory or using AR to see how a piece of furniture is made before buying it. This could help you make more informed decisions about what you buy and which companies you support.
Here are some ways businesses can improve their customer experience through conscious consumerism:
Honesty and Ethical Practices: Businesses should act honestly in everything they do, from how they treat their workers, where they get their materials from, and even how they talk about their products.
Being Green: Businesses shouldn't just try to do less harm to the environment but also try to help it. They can do things like reduce waste, use renewable energy, or offset their carbon emissions.
Using Technology to Teach and Inform: Businesses can use their websites or apps to tell people about their efforts to be ethical and sustainable. This also helps customers make better, informed choices.
Building Trust with Customers: Businesses can win over conscious consumers by showing they care about the same things their customers do and by consistently showing they are committed to these values.
As more and more customers think about their purchases, businesses will have to focus more on these values. They will need to be open, sustainable, and socially responsible. Technology will continue to play a big role in helping businesses deliver personalized experiences to their customers.
To prepare for the future, businesses should try to understand what their customers care about and align their practices accordingly. They should also use technology to share information and engage with customers.
The combination of conscious consumerism and CX opens up new business opportunities. As customers continue to care more about ethical and sustainable practices, businesses will have to change to meet these demands. Those who can do this well will gain loyal customers, have an edge over competitors, and contribute to improving the world.
DCX Linkedin Poll of the Week
This week I posed the question to our colleagues in the Customer Experience Professionals Group on Linkedin about conscious consumerism and the best way businesses can improve their customer experience.
This poll reveals trust as the top priority for conscious consumers, reflecting the importance of consistency, transparency, and integrity for businesses. Honesty and ethical practices are also highly valued, showing that informed consumers seek businesses aligning with their values. Although 'Being Green' and 'Using Tech to Inform' scored lower, they remain integral in building a holistic business image. Hence, businesses should primarily focus on trust-building and ethical conduct while considering environmental and tech-based education initiatives as supplementary strategies.
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AI Personalization: Customer's Dream or Privacy Nightmare?
Imagine a world where businesses understand your wants and needs better than ever before. They know your favorite color, the products you love, and even what you're likely to buy next! This isn't a scene from a futuristic movie; it's happening right now, thanks to a clever tool called AI-based personalization.
This tool is dramatically changing how companies interact with you, making your customer experiences (CX) more enjoyable and personal. In this article, I'll explore what AI-based personalization is, its benefits, the opportunities it presents, and the challenges it faces.
What is AI-based personalization?
AI-based personalization is like having a personal assistant who knows you really well. It's a technology that uses Artificial Intelligence (AI) to understand your behavior, preferences, and needs. This understanding allows businesses to tailor their services and products to you specifically. The result? A unique and improved customer experience just for you.
Take Netflix, for example. Ever wondered how it always seems to recommend the perfect movie for you? That's AI-based personalization at work. It tracks your viewing habits, likes, and dislikes and then suggests shows and movies you might enjoy. Similarly, Amazon recommends products based on your previous searches and purchases. It's like these companies are reading your mind!
The opportunity for AI-based personalization on CX
The beauty of AI-based personalization is that it's a win-win for everyone. Businesses get to understand their customers better, and customers feel more valued and understood.
For you, it means less time searching for the right product or service and more time enjoying it. This results in higher customer satisfaction, often increasing customer loyalty.
And there's a bonus for businesses too. Happier customers tend to buy more, which can boost a company's revenue. Research shows that 80% of customers are more likely to make a purchase when brands offer personalized experiences.
Looking to the future, AI-based personalization has the potential to change how businesses interact with you completely. As the technology improves, the experiences can become more and more tailored to you.
Companies that embrace AI-based personalization will have the edge in staying competitive and meeting your evolving needs. Look out for emerging trends like AI chatbots that can engage in personalized conversations with you and virtual reality shopping experiences tailored to your style and preferences.
Challenges and considerations
As exciting as AI-based personalization may sound, implementing it is not without challenges. Companies must navigate various considerations to ensure that they're employing this technology responsibly and effectively.
One of the main concerns is data privacy. In order for AI to personalize your experience, it needs a lot of data about you. This might include your buying habits, browsing history, location, and even personal details. Companies must be cautious about gathering, storing, and using this information.
They need to comply with privacy laws and ensure their methods are secure to protect your data from breaches. For instance, Facebook came under fire when it was revealed that the personal data of millions of users was improperly accessed. This serves as a warning of how crucial it is to maintain robust data protection practices.
Bias is another significant issue. AI systems learn from the data they're fed, and if that data contains biases, the AI could develop biased behavior too. For example, if a clothing company's AI system is mostly exposed to data from young adults, it might not offer relevant recommendations to older customers. Companies must ensure they use diverse and representative data to train their AI systems.
Transparency is a third key consideration. As a user, you have the right to know how your data is used and how decisions about your experience are made. Companies must be clear about their AI practices and give you the ability to control your data. For instance, Spotify offers a feature where you can see why a particular song is recommended to you, providing a glimpse into their AI system.
Lastly, it's essential to consider the human touch. AI can do a lot, but it can't replace the empathy and understanding of a real person. Companies must strike a balance between automated, personalized experiences and those moments where a human touch makes a real difference.
For example, while an AI chatbot might be excellent at solving simple customer queries quickly, it might struggle with complex, emotional, or unusual situations that a human customer service representative would handle more effectively.
AI-based personalization is transforming how companies interact with you, making your experiences more personal and satisfying. However, challenges around data privacy and transparency must be addressed. Looking forward, this technology has the potential to revolutionize customer experiences, offering unique, tailored interactions that delight customers and drive business success.
Next time you interact with a brand, think about how AI personalization is at work and shaping your experience.
Etc.
Links to Industry news, ideas, insights, and the DCX Thought Leader Linkedin Profile of the week
Alta Adams - ChowNow Stories - The other side of the conscious consumer story. The conscious business.
Customer Experience Is Everyone’s Responsibility (hbr.org) - This article explores how leaders can lay the foundation for great customer experiences within their company walls before it’s served up to customers. It requires a cross-functional commitment and collaborative execution.
Six customer experience pitfalls to avoid | McKinsey - To successfully enhance customer experience, companies need to build the right organizational capabilities and culture to plan, execute, and sustain the transformation.
Delighting Customers Is Key To Meaningful Customer Experiences (forbes.com) - In today's competitive marketplace, businesses need to go above and beyond to delight their customers. This means providing an exceptional customer experience that exceeds their expectations.
How Telcos Transform Customer Experiences with Conversational AI - (nvidia.com) - Webinar 5/31 - Join Infosys, Quantiphi, Talkmap, and NVIDIA to learn how telecommunications companies are using AI to improve operational efficiency and enhance customer engagement.
It’s never too late to start being accountable.
DCX Thought Leader Linkedin Profile of the Week
Every week, I share a person's profile from Linkedin that I think will benefit your life and career.
This week, meet Rob Markey, a global authority in customer strategy and marketing who pioneered Bain's Customer Strategy & Marketing Practice.
Rob’s expertise in cultivating customer and employee loyalty, spearheading new product development, and devising customer service strategies has been honed since joining Bain in 1990.
His industry experience spans a diverse range of sectors, including financial services, telecommunications, retailing, media, professional services, healthcare, building equipment, and food processing.
With an extensive background in direct marketing, customer acquisition, and cost reduction strategies, Rob's impact has been particularly felt in the retail banking, credit card, and insurance businesses. He is also the global leader of Bain's Net Promoter System®, a testament to his dedication to customer satisfaction and loyalty.
As the NPS Loyalty Forum lead, Rob facilitates collaboration among senior executives from loyalty-leading companies worldwide. His insights on customer experience and loyalty have been widely published, featuring in esteemed publications such as the Harvard Business Review.
Co-authoring "The Ultimate Question 2.0: How Net Promoter Companies Thrive in a Customer-Driven World" further cements Rob's status as a thought leader. This book, a bestseller in both The New York Times and The Wall Street Journal, was published by Harvard Business Review Press.
He holds an MBA from Harvard Business School and a Bachelor of Arts degree in Economics from Brown University.
Beyond his professional accomplishments, Rob has a deep commitment to social responsibility. He co-founded and served nearly a decade on the Board of Directors of City Year New York, further showcasing his leadership both in and out of the boardroom.
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