Discover more from DCX - Perspectives and Insights on Digital CX
#67 | DCX - Perspectives and insights on digital customer experience
Customer Loyalty: Navigating the Waters of Instant Gratification; Leveraging Data for Decision; Poll: 2030 - AI vs Human; Links to Industry news and the DCX Thought Leader Profile of the Week
Thank you to 618 CX professionals from 38 US states and 72 countries for being loyal weekly readers of DCX. I am incredibly grateful for your continuous support and engagement.
Customer Loyalty: Navigating the Waters of Instant Gratification
Have you ever felt like you're struggling to keep a boat steady in choppy waters? That's the world of customer experience today. The turbulent waters are the desire for instant gratification and the abundance of choices, and the boat is our attempt to build long-term customer loyalty. Let's take a closer look.
The Age of Now
Have you noticed that everyone wants everything immediately? We live in the Amazon era, where two-day shipping is too slow, and streaming services recommend movies before we even know we want to watch them. The consumer world has been rewired for speed, leaving no time to wait.
Choices, Choices Everywhere!
When was the last time you tried to buy a simple white shirt? Did you feel overwhelmed with choices, such as slim fit, regular fit, cotton, linen, designer, budget, and so on? Barry Schwartz coined this as the "Paradox of Choice." With so many options, decision-making becomes harder and can even be paralyzing.
Apple acknowledges this reality by offering minimal product options. Rather than confusing users with ten models of an iPhone, they present a few, making the decision-making process easier.
So, Is Long-term Loyalty a Dying Concept?
With this backdrop, it's tempting to believe customer loyalty is going the way of the dodo. But is it really?
Starbucks is an excellent example of a brand that has successfully built customer loyalty. Despite countless local coffee shops and giants like Dunkin' Donuts, customers still line up for their daily Starbucks. It's not just about coffee. It's the experience, the familiarity, and the loyalty rewards. Starbucks has fostered a community – a 'third place' between work and home.
Building Loyalty in Today's World: It's Not Just Points
Sure, everyone loves earning loyalty points, but loyalty goes beyond that. As CX professionals, we need to think outside the box and beyond the rewards catalog.
Take Nike, for instance. Their "Just Do It" slogan isn't about shoes. It's a mindset. Customers relate to the brand's philosophy, and that drives loyalty.
American Express's Centurion Card (or the Black Card) is a prime example. It's not just about the benefits; it's the exclusivity and status of being a cardholder that people aspire to.
Harley Davidson isn't just selling bikes; they're selling a lifestyle. Owners aren't just riders; they're part of a close-knit community.
Pivoting with the Times: It's a Marathon, Not a Sprint
Building loyalty isn't a one-time task. It's an ongoing process and a relationship that needs nurturing.
Disney's MagicBand is an excellent example. It's not just a tech bracelet that lets guests enter parks, unlock hotel rooms, or buy food. It enhances the Disney experience, making the trip more memorable. Disney isn't just selling tickets; they're selling experiences.
The Road Ahead
Building customer loyalty is challenging but not impossible. We need to understand our customers emotionally, not just demographically.
It's about trust. Can customers trust us to provide consistent value each time? Can they trust us with their data, preferences, and desires? If the answer is yes, loyalty will follow.
And remember, it's okay to start small. Every step counts. A personalized email, an exclusive early-bird offer, or even a simple thank-you note. It's these small gestures that lay the foundation for long-term loyalty.
Show your support for the DCX newsletter by signing up:
AI Tool Report
Learn AI in 5 Minutes a Day. We'll teach you how to save time and earn more with AI. Join 70,000+ free daily readers for trending tools, productivity-boosting prompts, the latest news, and more.
Leveraging Data for Decisions
In Customer Experience, data is our compass. It directs strategies, refines approaches, and fundamentally shapes our interactions with consumers. To make data-driven decisions, it's crucial to grasp the differences between qualitative and quantitative feedback tools. Today, I am going to explore the distinctions and their appropriate application, so we can all sharpen our decision-making skills.
Qualitative Feedback: Dive Deep
Definition: Qualitative feedback explores the nuanced aspects of customer experience. It focuses on understanding the 'why' and 'how' behind customer sentiments and behaviors.
Examples: Think of open-ended survey responses, interviews, focus groups, and observational studies. These tools capture the raw, unfiltered voice of the customer, providing rich context.
Pros: Qualitative feedback brings forth the stories, emotions, and motivations that are often overlooked in raw numbers. It unveils deep-rooted issues, offering a lens into the consumer psyche.
Cons: Such feedback can be labor-intensive and may not always represent the broader customer base. Interpretation bias is another concern, as the data collected is subjective.
When to Use: Turn to qualitative tools when you're looking to understand the root causes, motivations, and nuanced feelings of your customers. It's particularly beneficial during product launches, when addressing specific complaints, or when human insights are needed to comprehend complex issues.
Quantitative Feedback: Scale and Precision
Definition: Quantitative feedback offers structured, numerical data. It deals with measurable, countable insights, answering questions like 'how many' and 'how often.'
Examples: Journey analytics, Net Promoter Scores (NPS), and multiple-choice surveys are quintessential quantitative tools.
Pros: These tools excel in providing a bird's eye view of the customer landscape. They offer scalability, are generally quicker to administer and analyze, and present concrete, definitive data.
Cons: While quantitative feedback delivers breadth, it might lack depth. It tells you what is happening but may not necessarily reveal why.
When to Use: Quantitative tools are ideal for periodic assessments, tracking performance metrics, and gauging broad customer sentiments. They're the go-to when you need to present tangible figures to stakeholders or make large-scale, data-driven strategies.
Finding the Perfect Balance
If you want a complete picture of your customer journey, it's crucial to bring together the best of both worlds: qualitative and quantitative feedback. Each approach brings unique advantages and limitations. While quantitative data provides a big-picture view of customer sentiments, qualitative insights delve deep into the underlying emotions and motivations.
Now, picture this: your Net Promoter Score (NPS) has taken a hit. Quantitative data sheds light on the concerning trend, but it's qualitative insights, such as customer interviews and text analytics, that hold the key to understanding what's really behind this dip.
Data is the cornerstone of effective decision-making. As CX professionals, understanding the intricacies of qualitative and quantitative feedback tools is paramount. By leveraging both appropriately, we can craft strategies that resonate, foster loyalty, and drive growth. Remember, it's not about favoring one over the other; it's about harmonizing them to paint a comprehensive picture of the customer experience.
Show your support for the DCX newsletter by signing up:
👋 Hey, check out Refind! Every day Refind picks the most relevant links from around the web for you. Loved by 250k curious minds.
This week I asked our colleagues in the Customer Experience Professionals Group on Linkedin about what will dominate CX by 2030, AI or human touch.
The Future of AI Chatbots vs. Human Touch in Customer Service
By 2030, will your go-to customer service agent be a robot? Let's break down the findings of this week’s poll and see what our fellow CX professionals think.
"Yes, AI is our Future" - The True Believers
A small slice, 13% to be exact, is betting big on AI. They're the folks who believe that by 2030, chatbots will be the kings and queens of customer service. For them, it's a digital dawn. Why This Enthusiasm? Think about it. AI is quick, always up for a chat, and doesn't sip coffee on breaks. They believe AI will provide answers fast, consistently, and error-free.
"No, We Need Human Touch" - 24% Holding onto Humanity
Almost a quarter of the respondents lean towards humans. Ever had a chat with a bot and felt...nothing? That's what this 24% fears. For them, the warmth, understanding, and empathy of human interaction can't be replaced.
"Maybe, But It's a Mixed Bag" - 22% Sitting on the Fence
This group's the "let's wait and see" bunch. They reckon there's potential, but there might be some snags too. Their verdict? They think AI can be super helpful. But what if it goes haywire? Or what if it just doesn't "get" them? It's like ordering a mixed bag of candies and hoping you don't get too many licorices.
"AI for Facts, Humans for Heart" - The Majority Opinion at 42%
Almost half of the pie! This group's mantra might as well be, "Give me AI when I need facts, but if I'm upset, let me vent to a human. They see a future where AI and humans coexist in harmony. Do you have a simple query? Ask the bot. Need a shoulder to cry on? Dial up a human. It's all about balance.
Imagine: You shoot a question to a chatbot. It gives you facts in a jiffy. But sensing you're confused, it quickly transfers you to a friendly human agent. Perfect, right? Well, that's the dream for these folks.
With tech getting smarter and humans, well, being their awesome selves, who knows what 2030 holds? Well, if this poll is any indicator, it's a bit of both. As tech gets better, maybe AI will win more hearts. But humans? We've got that special touch that's hard to replicate.
Unlock Your Full Potential 365 Days a Year
Tools for a better life. Learn More.
Free Download: The Accountability Exercise - "The Accountability Exercise really helped me through a very tough time. I think I would’ve been lost without it.” - Bill S.
A survey of 1,000 US consumers found that 65% of people love fewer than three brands, and 74% favor feeling valued and understood as the key to brand loyalty. 49% of consumers are more likely to purchase from a brand that does personalization well, and those that do will benefit from customer retention. Quality goods and services, personalization, transparency, and a quality customer experience are essential for brand loyalty.
This Market Study reveals how brands have been going wrong in areas like personalization and explains the incentives for reversing course and making customer-centricity a reality.
This SXSW 2023 panel discussion explores how research unlocks insights for brands, how creators are driving engagement, and how TikTok's purchase journey drives post-buy actions.
Thanks for reading DCX - Perspectives and Insights on Digital CX! Subscribe for free to receive new posts every Tuesday.
Each week, I share a profile from LinkedIn that I believe can positively impact your life and career.
Have you ever sat down to think about what it truly takes to hold your own in this rapidly changing digital world? Could there be someone out there who's unlocked the doors to success on this non-stop evolutionary journey? May I introduce you to Marko Z Muellner, a long-time leader in the land of Customer Experience (CX) and digital transformation who's doing just that?
As the Managing Director of CX Acceleration at Concentrix Tigerspike, Marko doesn't merely stay afloat in the intricate seascape of digital transformation - instead, he charts its course. Drawing a vivid picture of adaptability, empathy, and deep-seated understanding of customer-focused entrepreneurship, Marko's journey guides us boldly into uncharted territories.
Let me give you a glimpse into some of his captivating stories. Picture Marko deftly navigating unexplored frontiers of PR, influencer marketing, and web analytics to sell out Adidas Kobe 2 boots in just 24 hours, long before we knew the power of social media. It's here you see that he learned lessons of methodical planning and opportunistic marketing in action.
Now, cast your gaze towards Saint Peter's Basilica, where he masterfully crafted a digital strategy for Paul Allen's Fiat Lux installation. Here, audacity and creativity became his companions, demonstrating how digital audio could transform simple narratives into a transformative experience.
My personal favorite? His time at the helm of Coors Light’s digital advertising strategy. It’s here where he learned how brand consistency, the joy of creating viral videos, and the criticality of paid advertising could harmonize into a symphony of success.
But his odyssey didn't stop there. His drive to harmonize unique voices into cohesive action led him to build a consulting practice, pushing critical CX discussions into the C-suite and, by doing so, standing as a testament to his purpose-driven, connective approach.
The common thread in these stories? Despite the breadth of Marko's accomplishments, he never lost sight of the ultimate target: delivering an exceptional CX. The core human element, enabling an enriching, end-to-end experience that resonates with users, partners, and employees alike. Intriguing, isn’t it, how Marko reminds us that the heart of all digital transformations should pulse with authentic human connection?
Let’s take Marko’s invitation to explore this complex world with fresh eyes. Through his stories, we can muster the courage to rethink established norms and boundaries. Discover how, as Marko says, "Working with clients and colleagues who share that inspiration is an extraordinary gift."
Thank you for reading this week.
Please share with others you think would benefit.