What is a connected customer experience

Today’s customers expect seamless interactions across all touchpoints. Learn how to provide a connected customer experience.

Once upon a time, there was only one channel for customers and businesses to interact: the in-person experience. For centuries, these face-to-face interactions formed the bedrock of customer relationships. However, as the world evolved, so did our means of communication. With the early introduction of the telephone and—more recently—an explosion of digital channels, today's customers have nearly limitless options for engaging with the businesses they choose to patronize.

Modern customers and businesses interact through email, social media, websites, mobile apps, chat, and even voice assistants—and the number of available channels is only growing. In fact, a recent report by MoEngage suggests that 15 years ago the average consumer generally used two touch points when buying an item, and only 7% regularly used more than four. Fast forward to the 2020s, and consumers use an average of six touch-points, with nearly 50% regularly employing more than four in their purchasing journeys. 
 
While different channels offer customers increased freedom, they also have the potential to create a disconnect—leads being left unanswered, inconsistent messaging across channels, vital client information not being shared across teams, and essential processes or steps getting missed. As such, the growing demand for a fully integrated and connected customer experience (and the enhanced customer centricity it carries with it) may be the key to unlocking the full potential of the present-day, multi-channel customer journey. 

At its core, a connected customer experience refers to a seamless and cohesive journey that customers embark on when interacting with a brand. It transcends individual channels and touchpoints, weaving them together into a unified tapestry of engagement. To illustrate this concept, consider the following scenario: 

Sora, a tech-savvy consumer, begins her journey by researching a product on the brand's website. Impressed by the information, she decides to reach out via live chat to clarify some concerns. After a productive chat, she adds the item to her online shopping cart but abandons it to continue her day. Later, while scrolling through her social media feed, she encounters an enticing ad from the same brand, prompting her to complete the purchase. The process culminates with an email confirmation and a personalized post-purchase follow-up.

At its core, a connected customer experience refers to a seamless and cohesive journey that customers embark on when interacting with a brand

In this example, the brand orchestrated a connected customer experience for Sora by seamlessly integrating multiple touchpoints—the website, live chat, social media, email, and post-purchase communication. Each interaction felt like a natural progression, rather than a disjointed series of events. This orchestrated flow, rooted in coordination, exemplifies the essence of a connected customer experience. Additionally, this kind of connected journey demands excellent coordination between marketing, sales, customer service, and operations teams (to name a few), each working in tandem to deliver a cohesive experience without the risk of having to restart engagements every time the client moves to a new touchpoint. 

Achieving a connected customer experience necessitates coordination among various facets of an organization. It involves aligning people, technology, and processes to ensure that every interaction contributes to a consistent and purposefully-designed customer journey. Each department and team plays a crucial role in building this cohesion.

The digital team, the contact center, marketing, operations, and more, all need to collaborate effectively to harmonize their efforts. This coordination ensures that the customer journey remains uninterrupted, and the customer feels as though they are interacting with one cohesive organization, guided by a shared mission and values.

Benefits of a connected customer experience

What advantages are offered by this kind of seamless sequence of interactions? Many, and far-reaching. Broadly speaking, the key benefits associated with connectedness include: 

  • Enhanced customer satisfaction 
    Customers appreciate the seamless transitions and consistency of a connected journey, resulting in higher satisfaction levels. 

  • Improved customer loyalty 
    When customers encounter connected experiences, they are more likely to become loyal patrons, fostering long-term relationships with the brand. 

  • Streamlined operations 
    By eliminating silos and optimizing processes, connected customer experiences reduce operational complexities and enhance efficiency. 

  • Better insights 
    A unified view of customer interactions provides invaluable data and insights for businesses to refine their strategies and offerings. 

  • Cost savings 
    Reduced friction in customer journeys often translates into lower operational costs and fewer resources expended on customer support.

Although specifics vary by industry, McKinsey reports that health insurance businesses are likely to see a 73% increase in customer satisfaction, and hospitality industry customers 61% more willing to recommend hotels when their customer journeys are fully connected (rather than just focusing on touchpoints). Improved satisfaction and increased propensity to recommend products—these are wins that directly influence revenue. 

The benefits defined in the above section attest that a connected customer experience is quickly becoming a linchpin of business success. Simply put, consumers have come to expect seamless interactions with their chosen brands, regardless of the channels they frequent or the departments they move between. The significance of this realignment of priorities—focusing on the customer’s experience over the touchpoints themselves—is further explained as follows:

Meeting customer expectations for consistency 

As previously noted, today's consumers anticipate a level of consistency that transcends individual interactions with a brand. Connected customer experiences rise to the occasion by fulfilling these expectations. When a customer receives a consistent experience across various channels, they are more likely to engage positively with the brand. This makes it possible for organizations to not only meet client expectations but also surpass them, leaving a truly lasting impression.

Positively impacting customer loyalty and brand reputation 

The impact of connected customer experiences extends far beyond immediate interactions. It plays a pivotal role in fostering customer loyalty and shaping a brand's reputation. When customers encounter consistent and seamless journeys, they are more inclined to become loyal repeat patrons. They develop a sense of trust and affinity toward the brand, which, in turn, fortifies brand reputation. A positive reputation attracts new customers, creates brand advocates, and contributes to long-term success.

Reducing operational risks, costs, and time to insights 

Disconnected customer experiences often result in complex operational landscapes, with multiple technologies, data silos, and fragmented processes. This poses operational risks while also escalating costs. As a result, managing disparate systems and ensuring compliance becomes challenging. Additionally, disconnected data silos can lead to extended time frames for gathering insights. Connected customer experiences alleviate these concerns by streamlining operations, reducing risks, and expediting the time it takes to derive valuable insights.

Accelerating revenue growth and organizational transformation 

Brands that prioritize connectivity are better poised to unlock transformative outcomes. By breaking down the aforementioned silos, aligning teams, and eliminating points of friction in customer experiences, businesses can accelerate their growth trajectories. Revenue streams flourish as customers remain engaged and loyal. Simultaneously, cost savings accrue as operational efficiencies increase. The ripple effect extends to the very core of the organization, enhancing its culture, and fostering innovation and adaptability.

Unfortunately, connecting customer experiences may be easier said than done—it's not a simple switch you can flip; it's a strategic transformation that requires focused effort and meticulous planning. To successfully navigate this journey, organizations must first understand the responsibilities and steps necessary to make it happen.

The role of CXOs and senior CX Leaders in driving transformation

To overcome the challenges associated with building a connected experience, organizations often turn to their chief experience officers or other senior CX leaders. These individuals champion the cause, serving as the driving force behind the transformation. However, it's essential to recognize that the responsibility for connected experiences should not rest solely on one individual; the entire leadership team—as well as employees across every department—should be aligned in their commitment to this endeavor.

First steps to achieving a connected customer experience

With the right people committed to the success of the connected customer experience, it’s time to begin moving towards that goal. Consider these three steps to help ensure that an organization and employees are ready to bring everything together:

  • Conducting an internal audit 
    The journey should begin with a comprehensive internal audit to ascertain which departments are involved in the customer experience process, identify the technologies in use, determine the types of customer experience data available, and understand where this data resides. This audit will provide a clear baseline from which to proceed. 

  • Meeting with C-suite members 
    Armed with insights from the internal audit, the next step is to engage with key C-suite members. Each leader has specific goals. It's crucial to align the goals of the customer experience transformation with leadership’s needs and objectives, demonstrating how connected customer experiences can help them achieve their desired results. 

  • Forming cross-functional teams 
    Achieving connected customer experiences requires collaboration across every relevant department. Cross-functional teams, composed of individuals from various areas of the organization, are instrumental in identifying opportunities for improvement, designing solutions, and executing strategies. These teams ensure that the transformation is holistic and not confined to a single area of the business. After all, anywhere the customer touches should be included in their connected journey.

The importance of ongoing and iterative efforts

Connected customer experiences are not a one-time project; they are an ongoing commitment requiring constant monitoring and consistent course correcting. Organizations should view this journey as iterative, constantly seeking ways to refine and improve the customer journey. Regularly reassessing data, technology, and processes is essential to maintaining alignment with evolving customer expectations and organizational goals.

Achieving connected customer experiences hinges on leveraging the right digital solutions to connect various customer touchpoints seamlessly. Below, we discuss the essential tools and technologies necessary to establish this connectivity.

Leveraging technology to connect customer touchpoints

Technology helps bridge the gap between disparate engagements and interactions, bringing customer touchpoints together in ways that wouldn’t otherwise be possible. Although there are many tools that can provide resources and support along the way, the most important technologies for creating a connected customer experience are:

  • Unified data platforms 
    Implementing unified data platforms allows organizations to consolidate customer data from various sources and systems into a single, accessible repository. This unified view of customer information offers a single source of truth while also forming the foundation for delivering consistent experiences. The best data platforms also incorporate automation, allowing businesses to connect effectively with large volumes of customers and scale to meet increasing or decreasing demands. 

  • Omnichannel engagement tools 
    Omnichannel tools make it possible for organizations to engage with customers across multiple channels, including web, mobile, social media, email, etc. These invaluable components facilitate coordinated communication and interactions.

  • Application programming interfaces (APIs) 
    APIs enable seamless integration between systems, allowing data to flow smoothly across departments and channels. This connectivity ensures real-time access to critical customer information. 

  • CRM and CSM 
    Customer relationship management (CRM) systems help sales and marketing departments manage customer interactions, track customer history, and personalize communications, which is why integrating CRM data with other touchpoints may enhance the connected experience. That said, customer service management (CSM) is a more complete customer service tool, integrating customer engagement with customer operations and service delivery, and supplementing powerful CRM capabilities to offer a truly unified view of customer relationships across an entire organization.

Role of data analytics in personalization and insights

As with any initiative, a connected customer experience should be grounded in hard, reliable, real-time data. The essential role that data analytics plays in personalizing engagement can be defined in the following ways:

  • Data analytics 
    Advanced data analytics tools are indispensable for gaining insights into customer behavior and preferences. By analyzing historical data, organizations can identify patterns and trends, enabling them to make data-driven decisions to enhance the customer journey. 

  • Predictive analytics 
    Predictive analytics models use historical data and machine learning to forecast future customer behavior. This allows organizations to proactively address customer needs and anticipate potential issues, fostering customer satisfaction and loyalty. 

  • Artificial Intelligence 
    AI plays a pivotal role in personalization and automation. Machine learning algorithms can process vast amounts of data to predict customer needs and deliver tailored content and recommendations. AI-powered chatbots and virtual assistants provide real-time assistance, enhancing the customer experience.

Examples of successful technology implementations

While specific tools may vary depending on an organization's needs, a range of industries have already successfully implemented technologies to achieve connected customer experiences.

  • Retail 
    Many retailers leverage CRM and CSM systems and unified data platforms to connect online and in-store experiences. They use data analysis to pull insights from customer data to help personalize recommendations and offers, creating a seamless shopping journey. 

  • Hospitality 
    The hospitality industry utilizes guest management systems that connect reservations, check-ins, and guest services. AI-powered chatbots provide instant responses to guest inquiries, and mobile apps streamline registration and concierge services. 

  • Financial services 
    Banks and financial institutions employ omnichannel banking solutions that enable customers to access their accounts through various channels, such as mobile apps, websites, and physical branches. Data analytics help identify cross-selling opportunities and tailor financial advice. 

  • E-commerce 
    Online retailers employ customer data platforms to unify data from website visits, email interactions, and purchase history. AI-driven product recommendations enhance the online shopping experience, increasing conversion rates.

While the promise of connected customer experiences is tantalizing, organizations must navigate several challenges and considerations on their path to implementation:

Addressing privacy concerns and data protection requirements 

Connected customer experiences rely heavily on data, and that means they must navigate a complex landscape of privacy concerns, data protection, and evolving government regulations.:

  • Data privacy regulations 
    Stringent data privacy regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) demand that organizations handle customer data with utmost care—levying severe penalties against any businesses that fail to do so. Ensuring compliance with these laws isn't just a legal obligation; it's vital for maintaining trust with customers. 

  • Customer consent 
    To collect and utilize customer data, organizations must obtain clear and informed consent. Transparency regarding data usage is the foundation of trust and compliance with privacy laws. 

  • Data security 
    Safeguarding customer data from breaches and cyberattacks is non-negotiable. A comprehensive data security strategy must include encryption protocols, regular security audits, and other stringent measures to protect against data breaches. 

  • Dynamic regulatory landscapes 
    Government regulations concerning data privacy and protection are in a constant state of flux. Organizations must remain agile and adaptable to comply with these evolving laws. 

  • Global considerations 
    For organizations operating internationally, navigating diverse data privacy regulations across regions can be a complex responsibility. It demands a comprehensive understanding of local laws and a well-thought-out strategy for achieving compliance.

The last group of challenges worth mentioning are those that may come from inside an organization. Just as customers need consistency and connectivity, the various levels and departments tasked with providing this kind of integration must be capable and willing when it comes to collaboration. To bring people together (and, in turn, form a connected customer experience), consider these potential hurdles:

  • Organizational alignment 
    Achieving connected customer experiences requires a cultural shift within the organization. It necessitates breaking down departmental silos and fostering collaboration among marketing, IT, customer service, operations, and other key stakeholders. 

  • Leadership buy-in 
    Securing buy-in from top leadership is vital. Ensuring that the entire C-suite is aligned with the vision of connected experiences reinforces the importance of this transformative journey. 

  • Cross-functional teams 
    No single department can build a connected customer journey on its own; cross-functional teams are the only ones who can do it. These teams should include representatives from each department involved in the customer journey. 

  • Continuous communication 
    Effective communication is key to maintaining alignment. Regular meetings and updates among teams and stakeholders help ensure that everyone is working towards the same goal.

Addressing these challenges and considerations is integral to the successful implementation of connected customer experiences. Organizations that prioritize data privacy, stay informed about evolving regulations, and foster alignment among their teams are better equipped to deliver seamless and secure customer journeys.

Learn how a connected customer experience has the power to transform your business.

Organizations that prioritize data privacy, stay informed about evolving regulations, and foster alignment among their teams are better equipped to deliver seamless and secure customer journeys

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