#75 | DCX - Perspectives and insights on digital customer experience
Synergizing Marketing and CX: A Path to Unprecedented Growth; Maximizing Profits with Journey Analytics; DCX Poll; Links to Industry news and the DCX Thought Leader Profile of the Week
Thank you to 735 CX professionals from 42 US states and 83 countries for being loyal weekly readers of DCX. I am incredibly grateful for your continuous support and engagement.
Help me achieve the goal of reaching 1,000 subscribers before Dec 31. Your support would mean the world to me. Clicking the button below and sharing DCX with a respected colleague can make a huge difference. Or if this was shared with you, sign up yourself! Let's team up and make this happen together! Thank you so much!
Synergizing Marketing and CX: A Path to Unprecedented Growth
I recently had the opportunity to be part of a dynamic panel at the Chief Marketing Officer Forum hosted by Consero. The panel entitled "CMO Meets CXO," brought me together with marketing mavens Shannon Finberg, Cheryl Mills Knight, Beth Waldman, and moderator Lindsay Sanchez, for a great discussion about the vital intersection of Marketing and CX.
As we talked, it became clear that the lines between Marketing and Customer Experience are blurring in fascinating ways. Now more than ever, it is essential for organizations to find unity between these two areas. The discussion inspired me to explore the exciting potential of combining Marketing and CX to create exceptional customer journeys and ultimately achieve business success. So, let's dive in and discover how these two forces can work together harmoniously.
The Convergence of Data and Insights
At the heart of this team-up is data. Both the Marketing and CX squads collect tons of customer info. But the magic starts when this data is shared and looked at together. Bringing in Customer Data Platforms (CDPs) is a game-changer. It knocks down barriers and gives everyone a complete view of the customer. With this combined knowledge, teams can really get what customers want and need, leading to more spot-on and effective marketing.
For example, when outdoor gear company REI combined customer data from their marketing and customer service teams, they gained insights that allowed them to analyze customer personas to understand demographic splits by factors like gender or ethnicity. These insights impact everything from how REI displays content on its website or targets emails to paid channel strategy.
REI has improved its data analysis processes by implementing Tableau and fostering a strong relationship between different departments and IT. As a result, teams are now better equipped to gather and evaluate important customer insights, ultimately enhancing the overall customer experience and shaping business strategies.
Crafting a Unified Customer Journey
The dream? A customer journey that's so smooth, it's unforgettable. Marketing is key in drawing customers in and keeping them engaged, while CX ensures they're happy and satisfied. When these two sync up, you get a customer journey that's cohesive and memorable. The best companies are nailing this by perfectly mixing their marketing campaigns with customer service experiences. The result? Happier customers and stronger loyalty.
Consider the unified experience created by ride-sharing app Lyft. Their marketing highlights convenience and community, while their CX focuses on safety and support. Lyft uses key data points from its CRM platform to guide the conversation and provide a personalized experience. This allows them to tailor their services to each customer's specific needs and preferences, creating a more unified and seamless journey. Together, this makes for a smooth, personalized ride that keeps users returning. Customer retention at Lyft increased by over 20% last year due to their integrated approach.
Personalization at the Heart of Customer Interactions
Customers today want personal interactions like they're tailored just for them. That's where tech like AI and machine learning comes in. By blending insights from both Marketing and CX, businesses can create messages and experiences that hit home with customers. This boosts satisfaction and leads to more engagement and sales.
Netflix is a prime example here. They use algorithms to analyze viewing habits, which helps in crafting personalized recommendations. Netflix collects large amounts of user data and creates personalized journeys to provide relevant content.
They continuously gather data and measure performance to inform every possible decision, from predicting what viewers want to watch next to even informing their content creation. This approach shows how marketing (promoting shows and movies) and CX (ensuring a user-friendly experience) can work together to keep viewers engaged and satisfied.
Collaboration and Culture
The secret sauce? A culture where everyone works together. Marketing and CX teams must constantly communicate and aim for the same goals. Leaders play a huge role in making this happen, encouraging teamwork and shared responsibility. When teams work in harmony, it makes a real difference in customer satisfaction and business growth.
Let's look at Kendra Scott, a fabulous jewelry brand brought to life by Kendra Scott herself in 2002, right in the heart of Austin, Texas. It is now valued at over $1 billion, boasting an impressive array of 115 stores. Kendra Scott’s commitment to customer experience is deeply ingrained in the company’s culture and business model.
Kendra Scott believes that the customer is their boss and drives every decision they make. They focus on preserving the customer experience and maintaining high customer engagement. They offer a fully immersive experience in their stores, treating customers to cupcakes and Champagne while they watch their jewelry being created in front of them. In addition they have extended that experience into digital through an immersive e-commerce experience and social media marketing through TikTok.
Challenges and Opportunities
Sure, aligning Marketing and CX has its bumps. You might have different goals, data stuck in silos, or clashes in team cultures. But these challenges are also chances to innovate and get better. Overcoming them means being willing to change and learn, which leads to a stronger, more customer-focused organization.
A classic case is the transformation of Microsoft under Satya Nadella. Earlier, Microsoft had siloed departments which sometimes led to disjointed customer experiences. By encouraging collaboration and breaking down silos, they’ve managed to align their marketing and CX more effectively, leading to a resurgence in their brand and customer satisfaction.
Next steps
Picture Marketing and CX joining forces, creating this incredible power that captivates customers. It's not just a nice idea – it's essential. The payoff? Super happy customers, rock-solid loyalty, and unbelievable business success.
So, what's happening with your Marketing and CX teams? Are they in their own worlds or teaming up to make incredible customer experiences? How are you working to bring them closer together? Share in the comments.
This week’s DCX Newsletter is Supported by:
Maximizing Profits with Journey Analytics
My many years in customer experience leadership and consulting have shown me the remarkable impact of journey analytics. Mastering and refining the customer journey is more than a strategic edge; it's essential. This potent resource can notably heighten revenue, cut down on customer turnover, and amplify the Average Revenue Per User (ARPU), paving the way for lasting business expansion.
How Journey Analytics Works
Understanding the mechanics of journey analytics is crucial to appreciating its impact on business growth. At its core, journey analytics is a multi-layered process that involves collecting, analyzing, and interpreting data from various customer interactions across multiple channels. Here’s a breakdown of how it unfolds:
1. Data Collection: The first step involves gathering vast amounts of data from various touchpoints. This can include website visits, social media interactions, purchase transactions, customer service contacts, and offline interactions. Modern technologies allow for the aggregation of this data in a centralized system, making it accessible for analysis.
2. Customer Journey Mapping: This data is then used to create a ‘map’ of the customer journey. This map visually represents the typical paths customers take, from initial awareness to the point of purchase and beyond. It identifies key touchpoints and moments of decision-making, providing insights into customer behavior and preferences.
3. Analysis and Insight Generation: With advanced analytics tools, you can dive deep into this journey data to uncover patterns, trends, and insights. This analysis can reveal pain points where customers might disengage and high-impact moments where they make key decisions.
4. Predictive Modeling: One of the most exciting aspects of journey analytics is its predictive capabilities. Using machine learning algorithms, you can forecast future customer behaviors, such as the likelihood of a purchase, the potential for churn, or the propensity for a customer to respond to a specific offer.
5. Personalization and Optimization: These insights allow you to personalize the customer experience. This might involve tailoring marketing messages, optimizing the online experience, or customizing offers to meet different customer segments' individual needs and preferences.
6. Continuous Learning and Improvement: Journey analytics is not a one-time exercise. It's an ongoing process of continually refining your strategies based on new data and insights. This iterative approach ensures the customer experience keeps pace with changing preferences and market conditions.
By breaking down the customer journey into understandable and actionable parts, journey analytics empowers you to make strategic decisions that improve the customer experience, enhance loyalty, and drive growth.
Elevating Revenue with Deep Customer Insights
Journey analytics allows you to thoroughly explore the complexities of customer interactions, offering a detailed breakdown of each point of contact. Such in-depth knowledge empowers you to customize experiences, making every interaction captivating and aligned with opportunities to generate revenue. Identifying the most impactful routes and points of engagement that lead to customer purchases enables firms to refine these areas, increasing the chance of sales.
Additionally, journey analytics reveals opportunities for upselling and cross-selling by decoding customer habits and preferences. Offering customers relevant and timely propositions can lead to larger sales, thus elevating overall revenue.
Diminishing Churn with Active Customer Engagement
A primary advantage of journey analytics is its proficiency in spotting customers at risk of departure before they actually leave. By scrutinizing behavioral trends and patterns, businesses can identify potential churn and intervene proactively with custom solutions or offers. This approach not only aids in customer retention but also boosts their overall experience, making them feel appreciated and seen.
Moreover, journey analytics sheds light on the stumbling blocks within the customer journey. Promptly tackling these issues ensures a more fluid experience for the customer, reducing irritation and their chances of leaving. Enhancing the customer journey, informed by analytics, results in greater satisfaction and loyalty.
Enhancing ARPU with Data-Led Tactics
ARPU is a vital indicator of success for numerous businesses, and journey analytics can significantly improve this metric. By understanding the various customer segments and their distinct journeys, companies can devise specific strategies that appeal to each group. Offering high-value customers specialized premium services or loyalty programs can increase expenditure, raising ARPU.
In addition, journey analytics aids in crafting personalized marketing campaigns with a higher probability of success. Delivering the perfect message to the right customer at the ideal time can notably boost engagement and spending.
Leveraging journey analytics to comprehend and optimize the customer journey is pivotal for businesses looking to increase revenue, reduce churn, and boost ARPU. It offers critical insights that enable businesses to make informed, data-driven choices, tailor customer experiences, and maintain a competitive edge. As companies navigate the intricate web of customer interactions, journey analytics is vital for achieving enduring growth.
This week, I asked our colleagues in the Customer Experience Professionals Group on Linkedin what their #1 CX focus is for 2024.
As 2024 dawns, it's a thrilling time to be working in customer experience. Those of us in this vibrant field are not just participants but pioneers, shaping the trajectory of customer interactions for the foreseeable future. Our choices now are more than just business decisions; they're the building blocks of a new era in customer engagement.
This excitement is palpable in the latest DCX poll results, a treasure trove of insights that cast light on the evolving preferences and priorities for ‘24. The poll zeroes in on key areas like journey mapping, digital engagement, AI and chatbots, and customer loyalty programs, each telling its own story about where we're headed.
Journey Mapping (35%) stands at the forefront, a clear indicator that understanding the entirety of a customer's journey is paramount. This methodical approach allows CX experts to pinpoint and smooth out any bumps along the customer's path, ensuring a fluid and enjoyable experience from start to finish.
Not far behind is the focus on Digital Engagement (32%). This trend reflects a collective acknowledgment of the digital era we live in, where online platforms are not just tools but essential elements of the customer experience. Businesses are now looking beyond just having a digital presence to creating meaningful, engaging online interactions.
AI and Chatbots (28%) mark the next frontier in efficient customer service. By offering round-the-clock assistance and personalized interactions, these technologies are not just conveniences but crucial elements in building a responsive and customer-centric brand image.
Interestingly, Customer Loyalty Programs (6%) show a dip in priority, hinting at a possible shift towards more innovative customer retention strategies. This suggests that loyalty might be evolving from a program to a byproduct of the overall CX strategy.
For CX professionals, these results are a clarion call to adopt a Holistic Approach. Integrating journey mapping with digital and AI strategies can create a CX ecosystem that's not just functional but delightful for the customer.
The poll also highlights the need for a Balance Between Technology and Human Touch. While automation and AI are indispensable, they need to be tempered with human empathy, especially in complex customer scenarios.
To succeed in today's dynamic world, Continuous Improvement is key. With every technological advancement and market shift, customer preferences keep evolving. As a result, it's important to ensure that CX strategies are agile and adaptable to keep up with the changes and stay ahead of the competition.
Another critical insight is the importance of Integration Across Departments. A seamless CX requires a symphony of efforts from marketing, IT, sales, and more, each department syncing perfectly with the others.
Lastly, the power of Data-Driven Decision Making cannot be overstated. In a world awash with data, using analytics to understand and anticipate customer needs can be a game-changer.
As we look towards 2024, it's clear that the CX world is one of dynamic change and boundless potential. By weaving together technology, empathy, and a deep understanding of the customer journey, CX professionals are not just adapting to change – they're leading it.
Black Friday Special
𝟯𝟬-𝗗𝗮𝘆 𝗙𝗥𝗘𝗘 𝗧𝗿𝗶𝗮𝗹!
The 365 Days of Accountability Daily Challenge
Get your daily dose of inspiration: www.tinyurl.com/365dofasms
Tools for a better life. Learn More.
Free Download: The Accountability Exercise - "The Accountability Exercise really helped me through a tough time. I think I would’ve been lost without it.” - Bill S.
10 Best Customer Experience Books of All Time (surveysparrow.com)
There are many good books about customer experience strategies, and reading them can provide valuable knowledge, practical techniques, and insights into customer behavior and trends. Kate Williams from Sparrow compiled this list. Some recommended titles include "Empathy in Action," “A Complaint Is a Gift"” "Designing Experiences"” "The Cult of the Customer,"” and "Think Again."
Everyone Will Have a Team Of AIs (mattprd.com)
According to Matt Schlict, in the future, everyone will have a team of AI assistants to help them with everything they do, including shopping. This will significantly impact the e-commerce industry, making things easier and generating more revenue. It will also change the way employees work.
The CX Frontiers Book Club (bookclubs.com)
Hosted by industry expert Megan Burns, CX Frontiers is a group of 70+ CX professionals passionate about learning with and from each other to solve the toughest, most critical problems facing our industry.
DCX Thought Leader Profile of the Week
Every week, I am excited to introduce you to another inspiring professional from LinkedIn who has the potential to make a significant difference in your life and career.
This week, I am pleased to introduce you to Micah Solomon.
Micah Solomon is an international keynote speaker, author, and consultant, known as "The New Guru of Customer Service" by the Financial Post. Micah co-founded a successful IT company in college, gaining early experience in entrepreneurship and customer service.
Solomon has authored influential books like "High-Tech, High-Touch Customer Service", "The Heart of Hospitality: Great Hotel and Restaurant Leaders Share Their Secrets", and "Your Customer is The Star: How To Make Millennials, Boomers And Everyone Else Love Your Business" and his most recent release “Ignore Your Customers (and They'll Go Away): The Simple Playbook for Delivering the Ultimate Customer Service Experience eBook”. These works have made him a highly regarded figure in the hospitality and customer service industry.
As a speaker, Micah's engaging and actionable presentations have made him popular at conferences and events in industries like retail, healthcare, manufacturing, and finance. His consulting services have helped numerous organizations, both large and small, revamp their customer service culture for over 30 years.
Micah is a frequent contributor to reputable media outlets including Forbes Magazine, Bloomberg BusinessWeek, The Boston Globe, and has been featured on networks like NBC, ABC, and CBS. In his free time, Micah enjoys music and is an accomplished composer.
Thank you for reading this week.
Please share with others you think would benefit.
More from Mark Levy
DCX Ultimate CX Notes Templates
365 Days of Accountability - Daily Text Challenge, Books, Journals and Exercises