Despite the fact that there is a strong correlation between Customer Experience (CX) and business growth, and despite having access to more customer data than ever before, many companies continue to struggle to harness that data to meet customer experience expectations, according to a survey of marketing and CX decision makers conducted by Forrester Consulting for CSG.
“Around the world, companies are realizing the importance of using data to understand the evolving wants and needs of their customers,” said Brian Shepherd, executive vice president and group president for CSG. “And while companies have significantly increased the amount and type of customer data they collect, harnessing the power of that data to deliver a truly differentiated experience remains a significant challenge.”
Key findings of the study included that:
- Data is Abundant – However Internal Silos Stand in the Way of Delivering Good CX
- Eighty-five percent of companies surveyed have more data on their customers than two years ago; however less than one-third (29%) have high confidence in data quality.
- Only half (51%) of companies surveyed can use this data to personalize and customize interactions and less than half (46%) can orchestrate actions in real time.
- Decision makers surveyed indicated that the top challenges of delivering a good CX include the existence of internal silos (38%).
- Only 57% of executives agree that the CX budget has been spread across various departments to create a more integrated CX plan.
- CX is a primary driver of both customer retention and growth, as 62% of decision makers surveyed agree that more customers are making purchase decisions based on experience alone versus just two years ago.
- Customer demands that have changed in the last two years include increased demand for quicker response times (53%), increased demand for more personalization (59%) and increased desire for connected online and offline experiences (55%).
- Sixty percent of companies believe the failure to deliver a positive customer experience could likely result in decreased customer retention and 57% anticipated a possible decrease in sales or loss of company revenue.
The company’s own expert analysis asserts that only with a better understanding of how to interpret and leverage customer data will companies be able to isolate, quantify, model and track opportunities to improve CX, operational efficiency and ultimately drive business results.