Aberdeen’s 2024 State of CX: The New Ingredients for Success
The capability of CX programs to make a difference is constantly increasing with advanced technologies such as artificial intelligence (AI), automation, analytics, and more. What technologies are CX leaders prioritizing to set themselves apart from the competition? Aberdeen Strategy & Research’s 2024 State of CX report has the answers.
- Technology-enabled customer experience, or CX, has become a key differentiator of business success.
- However, the capability of CX programs to make a difference is constantly increasing with advanced technologies such as artificial intelligence (AI), automation, analytics, and more.
- For instance, organizations with high customer retention and satisfaction rates improve annual company revenue by 42%. Comparatively, other organizations see just a 1.9% improvement in revenue.
- What technologies are these organizations prioritizing to set themselves apart from the competition? Aberdeen finds the answers with the 2024 State of CX report.
Aberdeen Strategy & Research asked business decision-makers what makes their CX programs work. Aberdeen’s 2024 State of CX report identified CX leaders, i.e., those who are well-heeled in their CX programs, their strategies for successful implementation, and how well they work to yield the desired results.
According to Aberdeen’s findings, CX leaders’ top goals include reducing costs and improving efficiency (40%), improving customer satisfaction (39%), retaining existing customers (28%), increasing top-line revenue (28%), and increasing the number of new customers (20%).
Technology-enabled customer experience can be pivotal in enabling businesses to enhance competitiveness and become best-in-class with their CX implementation.
Best-in-class organizations are those that make up the top 20% of all organizations with the best customer retention and customer satisfaction. These businesses also register an increase in revenue and improve customer response times significantly. Here’s how they fare:
- Best-in-class organizations have a 79% customer retention rate vs. 53% for others
- Best-in-class organizations have a 42.3% improvement in customer satisfaction vs. 1.3% for others
- Best-in-class organizations have a 42% improvement in annual company revenue vs. 1.9% for others
- Best-in-class organizations have a 25% improvement in response time vs 2.1% for others
See More: From Data to Delight: Aberdeen Finds How AI Helps Crafts an Exceptional CX
Aberdeen noted in the report, “To stay ahead of the curve and please your customers, it’s essential to follow the lead of CX trailblazers investing in the latest innovations.” Here’s how best-in-class organizations do it: they prioritize five technologies to strengthen competitiveness:
- Artificial Intelligence: to streamline operations and refine operational efficiency
- Customer Analytics: analytics play a dual role – it helps with customer interactions and serves as fodder for AI tools
- Customer Communications & Contact Centers: to deal with the high volume interactive elements
- Automation: to eliminate redundancies and systemize operations
- Employee Virtual Assistants: to assist employees
Top Strategic Priorities for Planned Technology Investments
Source: Aberdeen Strategy & Research
Beyond these five areas, best-in-class organizations also have content management systems, e-commerce, customer self-service systems, and more in place as strategic investments.
It is important to note that applying advanced technologies for CX cannot be undertaken with a one-size-fits-all approach. Organizations need to take into consideration the business objectives and values.
“As AI and digital technologies advance, customer touchpoints are evolving rather than disappearing. Innovation means equipping employees with tools to gain better insights, self-solve challenges, and deliver personalized experiences that exceed expectations. Investing in the right technology translates to investing in better customer relationships, leading to success now and in the future,” Aberdeen concluded.
Note: Aberdeen Strategy & Research’s 2024 State of CX report is based on responses from 661 decision-makers working in multiple companies through various sectors.
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