Tech isn’t the answer to all your CX problems. Source: Pexels

Why fancy technology won’t win you customers

CUSTOMER EXPERIENCE (CX) is critical for businesses today. It’s what helps them hold on to existing customers and win over new ones.

However, a lot of companies in recent times have been investing in new-age technology for quick CX wins but haven’t really been seeing any returns – despite customers often say that they’re willing to pay more for a better CX.

The price premium of good customer experience

According to PwC’s latest study, that might be because people aren’t interested or wow-ed by fancy technology until the company gets the basic right.

Customers value speed, convenience, consistency, and friendliness are key, and nothing else matters till a company gets those right.

The study also emphasizes the importance of the human touch – creating real connections by making technology feel more human and giving employees what they need to create better customer experiences.

Human vs Automated Interaction

In fact, 82 percent of U.S. and 74 percent of non-U.S. consumers want more human interaction in the future. That makes it crucial that the technology supporting human interaction is unobtrusive and works seamlessly across platforms.

Today, 59 percent of all consumers feel companies have lost touch with the human element of customer experience. And there’s a mismatch between customer expectations and how employees deliver: only 38 percent of U.S. consumers say the employees they interact with understand their needs while 46 percent of consumers outside the U.S. say the same.

As a result, PwC suggests that companies need to work harder to reduce any friction for consumers and empower employees to bring higher customer satisfaction, resulting in more forgiveness if things go wrong. This may require new ways of working, more focus on the employee experience and a sophisticated view of the human-and-machine relationship in customer experiences.

It also reminds companies that technology isn’t the final solution, it’s an enabler. It suggests that companies must focus on the experience and realign priorities to make some headway in CX.

A focus on building a great employee experience will bring stronger, smarter, more innovative ideas, which will drive future business and a superb customer experience.

At Ritz-Carlton Hotels, every employee has the freedom to use up to US$2,000 to rescue a bad guest experience – and they know what they’re doing because 60 percent of all consumers surveyed said they’d stop doing business with a brand if the service they received was not friendly.

When do customers stop interacting with a brand they love?

In the U.S., even when people love a company or product, 59 percent will walk away after several bad experiences, 17 percent after just one bad experience.

That reaction is even more dramatic outside the US. In fact, 34 percent of non-U.S. customers would stop doing business with a brand they loved after one bad experience. In Latin America, 49 percent say they’d walk away from a brand after one bad experience.

The bottom line is, companies must focus much harder on getting their CX right – and avoid looking at technology as a “complete” solution to all their problems. Ironing out all the kinks and making sure you deliver on the basics, consistently, is key.