The landscape of customer experience is ever evolving, demanding continual self-reflection and refinement.
In this age of digitization and globalization, businesses across industries strive to enhance customer experience. When faced with unique challenges, our quest for solutions leads us to explore existing and untested ideas, seeking precedent and maybe even perhaps drawing inspiration from competitors, and dissecting their strategies. With a modern CX approach, there’s more room to explore as it’s changing rapidly and opening the door for a more broadened innovation horizon.
How does competition drive the need for a Modern CX strategy?
The need for a modern CX strategy stems from the high state of competitiveness in the field of business. Irrespective of the product/solution/service, by comparing CX strategies one can stay in tune with the industry trends. This is also a practical way to gain valuable insights into emerging customer preferences, technological advancements, and market shifts. Furthermore, the fear of falling behind in the market encourages companies to invest in research and development. This drive for innovation not only benefits the company but also enhances the overall quality and experience for customers.
To compare CX methods, first, it is important to identify the goals that can ensure successful CX outcomes. Secondly, it is important to contemplate the results your organization is aiming for. It could be better customer satisfaction, long-term customer loyalty, customer retention, increased verbal advocacy, or enhanced social media exposure.
Once the goals are set, it is crucial to define the metrics that can assess these elements and set achievable targets or benchmarks. By setting clear and achievable goals for customer experience, the brand can prioritize the most important parts of its strategy.
Here’s a list of 9 key elements that can help shape your own great modern cx strategy:
The competitive landscape of business compels entrepreneurs to adapt to changes swiftly. Whether it’s a shift in consumer behavior, regulatory requirements, or technological advancements, having a robust modern CX strategy will ensure your company remains agile and responsive to fluctuating market conditions.
- Offline & online brand marketing: Some strategies click while some don’t. This statement stands true for online as well as offline marketing. Taking note of strategies or methods significantly impacting a brand’s online and offline visibility is a great way to start. The renowned beauty retailer Sephora offers a highly interactive online shopping experience with features like virtual try-ons while maintaining a strong presence in malls and physical stores. Additionally, brands that are successful in both domains are known to take customer feedback seriously.
- Tech support: Researching and finding out about the tools and technology they are using to support CX initiatives is a crucial step to improve customer experience. For instance, many companies have installed CRM systems integrated with AI-driven solutions for enhanced efficiency.
- Agent support: Contact center and call center agents serve as the frontline champions in shaping a robust CX journey. The quality of employee experience directly influences customer experience. Thus, prioritizing employee training, employee satisfaction, and empowerment becomes paramount in delivering an exceptional CX.
- Service speed and efficiency: Assessing the service speed and efficiency of a rival involves a comprehensive examination of their responsiveness in addressing customer inquiries, resolution times for issues or queries, and the overall efficiency displayed in meeting diverse customer needs promptly and effectively. This encompasses the swiftness of response, accuracy, and completeness of the solutions provided by them. It is a must-do as these factors are crucial in establishing a superior customer experience.
- Ways of communication: Omnichannel communication is an absolute must-have for a modern CX environment. Thanks to the internet and AI, people have found multiple ways to connect and put across their needs. Thus, assessing how seamlessly they integrate experiences across multiple touchpoints (online, offline, mobile, etc.) is important to get an insight into their CX methods.
- Personalization: Customization or personalization is no longer a unique differentiator. In this era of cutthroat competition, not being able to offer tailored services/products can be a huge setback for emerging as well as veteran brands. Also, people no longer question whether personalized products/services are possible, they rather question the degree to which the products or services can be personalized to suit their needs.
- Social media presence: Keeping an eye on a rival brand’s social media presence can be quite beneficial. Observing their activities on social media platforms offers insights into their marketing strategies, customer engagement methods, product launches, customer feedback, and overall brand positioning. It can also help in observing market trends and identifying potential areas of improvement.
- After-sales strategy: Monitoring a competitor’s after-sales strategy can be valuable for several reasons. It provides insights into how they handle customer support, address issues post-purchase, manage returns or exchanges, and nurture ongoing relationships. Furthermore, understanding their after-sales service helps in benchmarking one’s practices: for instance, refund policies; identifying potential gaps or areas for improvement, and learning from their successes and failures.
- Adaptability and innovation: Watch how well they adjust to what customers want and how creative they are in making new ways to improve customer experiences. See how quickly they respond to changes in the market, how flexible they are in changing their plans, and how fast they bring in new ideas that match what customers want. Understanding this helps to see how good they are at keeping up with what people need.
Don’t lose sight of your goals (unique and same)
Customer experience comprises both tangible and intangible elements and the one who can maintain a perfect balance remains ahead of the race. Even though competition analysis in CX is a much-advised strategy to enhance one’s own CX method, it is also imperative not to lose sight of one’s goals in the process. Balancing the insights gained from analyzing competitors while staying true to your brand’s distinct objectives ensures that your CX strategies remain aligned with your brand’s vision and values.
Learn why it is essential to simplify CX strategies for the long run.