#36 | DCX - Perspectives and insights on digital customer experience
Digital Personalization and Customization; Five Mistakes Businesses Make with DCX; DCX links and the Linkedin profile of the week
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Digital Personalization and Customization
Personalization and customization have emerged as two critical strategies to enhance the digital customer experience. These strategies enable companies to tailor their offerings to meet individual customers' unique needs and preferences, leading to increased customer loyalty and higher revenue.
The Importance of Personalization and Customization in Digital Customer Experience
Personalization and customization are powerful tools for businesses to deliver exceptional digital customer experiences. Personalization involves tailoring content, messaging, and interactions to meet individual customers' unique needs and preferences. In contrast, customization allows customers to modify or personalize their experience with a product or service.
One of the primary benefits of personalization and customization is increased customer loyalty. According to a 2018 study by Epsilon, 80% of customers are more likely to do business with a company that offers personalized experiences. Customers who feel a company understands and caters to their specific needs and preferences are more likely to remain loyal and continue doing business with that company.
In addition to increased customer loyalty, personalization and customization can also lead to higher revenue. A study by Accenture found that 91% of customers are more likely to shop with brands that provide relevant offers and recommendations, and 83% are willing to share their data to enable a personalized experience. This highlights the importance of leveraging customer data to provide personalized experiences that can drive sales and revenue growth.
Furthermore, personalization and customization can also help businesses stand out from their competitors. In a survey conducted by Econsultancy, 74% of marketers reported that personalization increases customer engagement. By offering personalized and customized experiences, businesses can differentiate themselves and provide a unique value proposition to customers.
How to Implement Personalization and Customization
Now that we understand the importance of personalization and customization in enhancing the digital customer experience, it's time to discuss how to implement them effectively.
Step 1: Collect Customer Data
The first step in implementing personalization and customization is to collect customer data. You can gather data through various means, including surveys, online forms, or tracking their behavior on your website or social media pages. The data you collect should provide insights into customers' preferences, needs, and behavior, which can help you create tailored experiences.
Step 2: Define Your Objectives
Once you've collected customer data, the next step is to define your objectives. This involves determining what you want to achieve with personalization and customization. Are you looking to improve customer engagement, boost sales, or increase customer loyalty? Defining your objectives will help you create a plan that aligns with your business goals.
Step 3: Create Customer Personas
Creating customer personas is an effective way to understand your target audience. Personas are fictional representations of your ideal customers based on your collected data. They help you identify patterns in customer behavior, preferences, and pain points. Creating customer personas will enable you to personalize your communication and content, creating a more targeted and relevant experience for your customers.
Step 4: Leverage Technology
Personalization and customization at scale can be challenging without the right technology. There are various tools and technologies available that can help you deliver tailored experiences to your customers. For instance, email marketing tools can help you personalize email content and subject lines based on customer behavior and preferences. Website personalization tools can help you deliver customized experiences based on customer browsing behavior. Similarly, chatbots can help you deliver personalized customer service by using customer data to offer tailored recommendations and solutions.
Step 5: Test and Refine
After implementing personalization and customization, continually test and refine your strategy. Analyze your customer data regularly to ensure you meet your objectives and provide a positive customer experience. Use A/B testing to compare personalized content and messaging versions to determine the best works. Regularly refining your strategy can help you improve customer engagement, boost sales, and increase customer loyalty.
Best Practices for Personalization and Customization
While personalization and customization have the potential to enhance the digital customer experience, it is important to approach these strategies with caution. Here are some best practices to keep in mind when implementing personalization and customization:
Be transparent and obtain consent
It is essential to be transparent with customers about what data you are collecting and how it will be used. Obtain explicit consent from customers before collecting any personal information. Provide them with clear information on how to opt out of personalization and customization features.
Collect and use relevant data
Collect data that is relevant to the personalization and customization strategy. Focus on data that will help you provide a better customer experience, such as previous purchase history, browsing behavior, and demographics.
Ensure the accuracy of data
Ensure that data collected is accurate and up-to-date. Regularly clean and maintain customer data to avoid errors and duplicates. Inaccurate data can lead to misguided personalization efforts and negatively impact the customer experience.
While personalization is important, it is essential to avoid over-personalization. Customers may feel uncomfortable or even violated if they feel that companies have access to too much personal information. Strike a balance between personalization and respecting customers' privacy.
This week’s DCX Newsletter is supported by:
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Five Mistakes Businesses Make with DCX
Digital customer experience (DCX) has become essential to customer experience management. DCX refers to a customer's experience with a business's digital channels, such as its website, mobile app, and social media presence.
While providing a great DCX can help businesses improve customer loyalty, increase sales, and gain a competitive edge, many businesses still make mistakes. Here’s a list of common mistakes businesses make when it comes to DCX and tips for avoiding them.
Focusing Too Much on the Product, Not Enough on the Customer
One of the most common mistakes is focusing too much on the products or services and not enough on the customers. While products are important, the customer should be at the center of a business's DCX strategy. Businesses that don't understand their customers' needs, preferences, and pain points risk losing their trust and loyalty. To avoid this, regularly collect customer feedback and use it to tailor your DCX strategy accordingly.
Neglecting the Mobile Experience
A significant portion of online activity now takes place on smartphones and tablets. However, some businesses still neglect their mobile experience, which can result in lost sales and frustrated customers. Ensure your website and mobile app are optimized for mobile devices to avoid this mistake. This includes using responsive design, simplifying the user interface, and ensuring pages load quickly on mobile.
Failing to Provide Omnichannel Support
Another mistake is failing to provide omnichannel support, a seamless experience across all of a customer's touchpoints with the business. Many customers interact with businesses across multiple channels, such as email, chat, phone, and social media. A customer's poor experience on one channel can negatively impact their perception of the business. So, provide consistent messaging and support across all channels and ensure that customer data and context is accessible across channels.
Lack of Personalization
See commentary on personalization in the article above ^.
Overcomplicating the User Journey
Finally, a complicated user journey can result in customers' frustration and lead them to abandon their interactions altogether. Strive to simplify the user journey as much as possible. This can include streamlining the checkout process, reducing the steps required to complete a task, and using clear and concise language throughout the user journey.
Avoiding these common mistakes can help you improve your DCX and gain a competitive edge. You can build stronger customer relationships and increase sales by focusing on the customer, optimizing the mobile experience, providing omnichannel support, offering personalization, and simplifying the user journey. DCX is a crucial part of customer experience management, and businesses that prioritize it are more likely to succeed in the digital age.
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Links to Industry news, ideas, insights, and the DCX Thought Leader Linkedin Profile of the week
Build Your Own ChatBOT - CustomGPT
This week I conducted a test of Custom GPT in order to construct a chatbot that could answer queries based on pages from a public website. The initial results have been mixed but promising; after resolving a database issue, the system crawled and indexed 548 pages and built a test bot in minutes. I also commend Alden de Rosario, CEO of CustomGPT, for his swift and helpful response to my service request.
Try it out for yourself.
ARK Invest_013123_Presentation_Big Ideas 2023_Final.pdf (ark-invest.com
ARK began publishing Big Ideas in 2017 to provide investors with information about the long-term impact of innovation. This annual research report seeks to highlight the current technological breakthroughs and their potential for super-exponential growth in the future. ARK's research has confirmed that innovation is picking up speed and that the company's strategies are well-positioned to take advantage of these changes.
CX without design only gets you halfway | McKinsey
Companies are putting a renewed focus on delivering exceptional customer experience (CX) Many are attempting to do so with siloed CX and design teams. A combined CX-design approach to discovering customer needs will help companies create a seamless end-to-end experience.
This week’s DCX Newsletter is supported by:
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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.
Frances Frei is a highly respected scholar, teacher, and advisor in leadership and organizational behavior. She is currently a Technology and Operations Management professor at Harvard Business School. She has previously worked as a consultant for McKinsey & Company and held leadership positions at several technology companies.
Frei is known for her research on service excellence, high-performing teams, and organizational culture. She has authored or co-authored numerous academic articles and two books, including "Uncommon Service: How to Win by Putting Customers at the Core of Your Business" and "Unleashed: The Unapologetic Leader's Guide to Empowering Everyone Around You."
She is also a sought-after advisor and speaker for numerous organizations, including Airbnb, Uber, and the NFL. Frei has received numerous awards and honors for her work, including the Robert F. Greenhill Award and the Dean's Award for teaching excellence at Harvard Business School. In 2018, she was named one of the "Top 50 Women in Technology" by Forbes.
This week’s DCX Newsletter is supported by: Thankful
It’s been three months since ChatGPT struck the whole world by storm and intrigued every customer support department around the globe.
But how can ChatGPT impact customer support? What is the bridge between ChatGPT and customer support? How can CX leaders integrate ChatGPT into their customer support ecosystem?
Join Thankful, Crate & Barrel, Support Ninja, and Gladly on March 2 at 11 AM PST for their webinar, How ChatGPT is Changing the Customer Support Ecosystem & What CX Leaders Should Do. Learn more and register here!
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