What opportunities lie ahead within the CXM space in 2024?

Jan 24, 2024

What opportunities lie ahead within the CXM space in 2024?

In the new digital age, customers have elevated expectations and a multitude of choices. A company's ability to provide a satisfying experience can result in long-term customer loyalty, whereas a negative encounter can quickly drive customers towards a competitor with just a few simple online actions. This evolving consumer environment has given rise to a crucial strategic approach known as customer experience management (CXM).

 

CXM entails the deliberate planning and coordination of pleasant and seamless customer interactions across various touchpoints and channels. Its objective is to consistently surpass customer expectations by delivering personalised, meaningful engagements that span the entire customer journey, ensuring a smooth experience at every stage.

 

The global CX Management market is estimated to reach US$11.4 billion in 2023, and is expected to grow 12.2% every year through 2028 to reach US$20.4 billion, according to a 2023 report by ReportLinker. On average, companies that put in the work to improve the customer experience see a 42% improvement in customer retention, a 33% improvement in customer satisfaction, and a 32% increase in cross-selling and up-selling, according to a Keap report.

 

What’s new in CXM in 2024? 

 

With the increase in CXM investment, this trend is expected to continue in the near future. With the emergence of new technologies such as AI, the newest advancements in CXM are largely driven by the integration of AI and machine learning technologies in 2024, such as OpenAI GPT, said Tong Ng, founder and creative director, DigiSalad.  

 

“These tools are becoming more sophisticated and are now capable of predicting customer behaviour and personalising experiences at an unprecedented scale. Additionally, the rise of omnichannel CXM platforms enables businesses to provide a seamless experience, whether customers interact with them through mobile apps, web platforms, social media, or in-person touchpoints,” he added. 

 

Customer service will also undergo a transformation, with chatbots and virtual assistants becoming more adept at managing inquiries and providing instant, round-the-clock support, according to Vincent Ma, director, Zlashy.  

 

These intelligent systems, designed to understand and predict customer needs, will offer a level of interactivity that is both convenient and highly personalised, setting a new standard for customer engagement. 

 

Additionally, the evolving landscape is turning increasingly “phygital”, pushing brands to connect with consumers on both mental and physical fronts, according to Jason Wong, head of performance, Omnicom Media Group Hong Kong.  

 

“In 2024, we expect more brands to join forces to create integrated consumer journeys, built up from data, that inspire and enable moments of brand celebration,” Wong added. 

 

How can marketers better leverage it? 

 

Based on the advancements in AI and ML and their integration into CXM, there are certainly ways for marketers to leverage this as part of their strategies. The first is to create advanced customer segmentation, said OMG’s Wong.  

 

With the continued evolution of AI and ML, marketers will have access to more sophisticated customer segmentation techniques. “They can analyse customer data to create highly targeted segments, including demographic information, browsing behaviour, purchase history, and interactions,” he added. 

 

As such marketers can be able to create more personalised experiences for consumers. William Ferrell II, customer centricity lead APAC, Ekimetrics, said in the upcoming year, brands will shift their focus from a digital-centric approach to a more balanced omnichannel experience (including offline), using hyper-personalised experiences to meet consumer needs across all touchpoints.   

 

Leveraging AI-driven personalisation, brands and agencies can automate the process of creative execution at scale. “This approach, coupled with the utilisation of AI and technology such as Customer Data Platforms (CDPs), ensures that every customer is individually understood and receives a unique experience, regardless of the channel,” he added. 

 

By using the right tools and methodologies, AI is capable of surpassing human agents in terms of delivering personalised communication, said Jeffrey Hau, CEO, PRIZM Group. “With AI’s unparalleled ability to process vast amounts of customer profile data and history, AI can deliver highly personalized recommendations and anticipate customer needs in ways that surpass human agents,” he added. 

 

Marketers should also communicate their security policies and sustainability efforts clearly, said Petralia. “Ultimately, apply CXM insights across sales, marketing, product development and beyond to embed customer focus into everything you do. Treat each interaction as an opportunity to build the lifelong relationship.” 

 

Published by Marketing Interactive on 23 January 2024

https://www.prizmgroup.com/hk/vision/prizm-and-smartretail-partnership-enhancing-the-o2o2o-experience-in-asia?name=prizm