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But at its core, the human race and virtually every paradigm we rely on has been scrutinised and pressured.
While many things have paused or shut down, there has also been great acceleration in innovation, both in business and science. The need to meet changing customer expectations and to transform digital experiences became a real-time event, coming to fruition in a matter of weeks and months, rather than years.
Feefo’s Marketing Director Keith Povey says:
“Customer experience (CX) has been at the forefront of this changing dynamic between brands and their customers, where brand loyalty has been tested more than ever before. The expectations have changed from what customers ‘want’ to what they absolutely ‘need’ - and the acceleration in innovation has been driven by each company’s own need to keep trading and, ultimately, to stay in business.
Businesses large and small have had to become more agile, more flexible and more empathetic, taking care of both their employees and their customers. 2020 has shown us more than ever how resilient we are, and how - in the face of adversity - businesses are highly adaptable. Yet, while there is light at the end of the tunnel, the way in which we think, do business and work will continue to evolve, with even more digital transformation on the horizon.”
With this in mind, let’s take a look at some of the CX trends predicted by Feefo and leading industry experts.
Real people. Real reviews. Real insight.
CX Trends 2021 Where do you go from here?
The same adjectives for 2020 have been used again and again. Unprecedented, uncertain, challenging, transformational.
1. Agile CX strategy
As COVID-19 continues to disrupt business, agility is key to success. No one could foresee the pandemic, but companies that were reactive and adapted successfully were the ones who met their customers’ changing needs with efficiency and effectiveness.
Many UK firms, large and small, were creative in developing more hygienic ways to keep their customers safe. Asda, for example, has become the first supermarket in the UK to roll out autonomous cleaning robots helping prevent the spread of COVID-19.
This year, businesses will continue to transform their approach to CX by adopting reactive strategies that put customers’ personal experience at the forefront of their operations.
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“When COVID-19 hit, being an ‘empathetic brand’ meant reaching out to customers to see what they needed and being sensitive to how they might be affected by the pandemic. Now, this has evolved to being able to put customers’ desires, feelings and expectations at the heart of a CX.” strategy.”
Paige O’Neill, CMO of customer experience management platform, Sitecore
Where do you go from here? CX Trends 2021
2. Relationships over transactions
According to research conducted by Edelman, 65% of people will base their future purchases on how well a company responded to the COVID-19 crisis. Many customers would stop using brands that have not acted appropriately, and 90% of consumers want to know what support a business’s employees and customers are getting from them.
Compassion, honesty and understanding matter a lot in 2021 and beyond. Brands the world-over have shown signs of empathy and alignment with community culture by striving to be a part of the global solution. The ‘We’ll March Again’ campaign by Guinness was met with encouragement and support after its patrons had to cancel St Patrick’s Day parades and celebrations. Big brands like KFC and Pizza Hut were met with praise from the public after they set up relief funds for employees diagnosed with COVID-19.
Yasmin Borain, Chief Experience Officer at ad agency, Tribal Worldwide London says: “The value exchange is no longer only with brand and customer, but with brand, customer, and society — our world. This year alone has opened our eyes to how important it is for us to help brands be and do better both in how they behave and through the services or products they deliver.”
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“Technology providers will be expected to be far more flexible now, tailoring their product offering to answer their customers’ ongoing concerns and needs. Naturally, this will require more technical solutions and perhaps even collaborations with other providers to ensure their problems are solved.”
Ash Finnegan, Digital Transformation Officer at digital document management experts, Conga
3. Trust, safety and inclusion
According to a Forrester survey, only 13% of consumers trust retailers to provide effective guidance and solutions during the pandemic. The events of 2020 have shaken people globally, and consumers are looking for new ways to feel safe by seeking brands they can depend on.
It’s not just about making promises, brands in 2021 will have to deliver on them, experiment with protocol and take actions that bring solutions in the eyes of the customer.
Depending on the industry the expectations will vary. For example, the travel industry is very much focused on restoring consumer confidence, whereas retail has had to create and maintain new standards throughout 2020.
Many businesses stepped up their game to support and reassure their customers during the pandemic - that in itself has become the ‘new normal’. People now expect a high level of engagement and customer care initiated by brands.
Where do you go from here? CX Trends 2021
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“On the one hand, people’s desire to travel and get away has never been greater than now, given what everyone has endured. However, consumers also need to feel safe and ready to travel before booking their next trip. This starts online for many, where travel brands need to provide customers with up-to-date information about destinations, travel requirements and their accommodation. Reassurance is critical - 2021 will be the year brands start to consider trust metrics in the marketing mix.”
Ian Crawford, Brand Manager of online travel retailer, Holiday Hypermarket
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“Two big themes emerging from business are the increasing demands on contact centres, and the necessity for brands to put CX at the heart of their operations. Customers have turned to contact centres for reassurance, and this will continue to be the primary brand touchpoint and face of a business, as restrictions continue to affect the ability to receive in-person customer service.”
Jonathan Allan, CMO at customer service platform, Puzzel
Where do you go from here? CX Trends 2021
4.Shifting customer behaviour
Consumer behaviours have permanently shifted since the pandemic, with fear and anxiety acting as fuel for purchase decisions. Customers are adapting to digital alternatives to satisfy their need for information, guidance and reassurance.
Businesses need to provide a seamless experience to reassure customers across all platforms, while speaking to them in a language they understand and can trust.
In 2021, brands will need to focus on bridging the gap between offline and online experiences. The demand for human interaction versus artificial intelligence seems to be split down the middle, so it’s imperative that businesses look for ways to incorporate a healthy balance between the two.
Ash Finnegan, Digital Transformation Officer at Conga says: “COVID-19 has led to a number of accelerations, not least digital transformation. However, with the boom of e-commerce and
online shopping, there has been a noticeable shift in customer expectations and behaviour. Digital solutions have enabled customers to shop far more efficiently and effortlessly, with a smooth end-to-end experience. However, speed is vital. Customers want services and products in an instant, and the same can now be said for businesses. Expectations have never been higher.”
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“Consumer behaviour has changed, and will continue to do so. This creates a shift in demand and therefore fulfilment. These are consumer behaviours that the high street (banks, food and retail) has been trying to change for years, and overnight those shifts happened through necessity. As consumers have begun the exodus to digital, we expect it to be a one-way street – for many, there will be no going back.”
Benedict Ireland, Head of Experience at web design and development agency, Splendid UNLIMITED
Where do you go from here? CX Trends 2021
5. Digital experience (DX)
As we start to trade physical connections for virtual, digital technology has become an essential part of post-COVID life.
More than 40% of UK consumers say they purchase more online now than they did in 2019, and a fifth of them would like to interact with brands through an online channel. 84% of global consumers use digital channels like social media, websites and apps more frequently than they did last year, so the shift to digital is real and shows no signs of slowing.
2021’s digital transformation needs to go further, and offer truly contactless solutions in every way, including payments. Research has shown that UK customers will shift more towards cashless solutions in 2021 and beyond. 51% will be using their cards more often, while 44% will opt for mobile or contactless payments.
Chris McLaughlin, Chief Product and Marketing Officer, content management software company, Nuxeo says: “Digital strategy and experience are important at the best of times, but have taken on a new importance that will continue into 2021. It’s tough, but not an impossible task and, with careful content management, firms can deliver a first-class digital customer experience with personalisation that will improve consumer loyalty.”
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“Digital technology has been increasingly significant for the last ten years – 2020 has seen an even greater acceleration in the adoption of technology with the need to make products and services more accessible. Hopefully, this trend will be supported by an increased awareness of how technology should be used to improve the customer journey – rather than being adopted in isolation.”
Ian Golding, global customer experience specialist at Customer Experience Consultancy
6. Data privacy and consolidation
2020 saw a number of data breaches and threats to cybersecurity across the world. Almost half the businesses in the UK were reported to suffer from a cybersecurity breach, many experiencing an issue on a weekly basis.
From phishing attacks to viruses, malware and ransomware, a data breach can cost companies millions of pounds a year and will cost customers too.
Due to the increase in online activities across the world, cybercriminals have taken the opportunity to develop new threats and target those most vulnerable: a new wave of internet users forced to take their work and education online. The widespread anxiety, dependence and confusion that online networks first posed in 2020 have pushed cybersecurity professionals to find immediate solutions to increase cyber defence.
Richard Robinson, Managing Director of marketing performance & digital transformation consultants Econsultancy says: “Data management, and most importantly the governance of the data being used, will become a defining part of CX in the next decade. Just as it is unacceptable for poor labour practices to be involved in the supply chain of physical goods, it will become unacceptable to society for data to be farmed, sold and used without consent.”
Where do you go from here? CX Trends 2021
7. Data science and AI innovation
2021 will see the proliferation of data continue at a rapidly increasing rate, with more connected devices, more people online and more digital consumption.
Businesses can expect to focus on:
→ Data and AI democratisation: Everyone is seeking an open, honest and transparent outlook when it comes to data sharing and the democratisation of data and technology. More businesses are looking to adopt open-source data and code, as well as pre-existing plugins and intuitive tools that sustain a shared economy.
→ Segmentation of data: Businesses will be expected to target each demographic of customer differently and market to them accurately based on customer data. Creating segments by identifying patterns according to location, age, marital status, income and education will help businesses maximise the value each customer brings.
Richard Roberts, Vice President, UK & I and Northern Europe at telecoms network operators, Mitel says: “As a result, we’ll see a growing number of brands experimenting with AI in a bid to enhance the digital consumer experience and enable hyper-personalisation. This will drive faster adoption of artificial intelligence (AI) and predictive analytics, with businesses looking to create more personalised and seamless online experiences. As AI becomes more widely used, virtual assistant apps will become easier to train and deploy, enabling smaller businesses to compete more successfully with larger brands.”
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“Pre-pandemic was a simpler time, from a security perspective. As long as sensitive files were within the four walls of the organisation, they were safe. But what happens when you have remote workers that are moving from one Airbnb to another regularly... Or workers who are moving from one family bubble to another? This dispersed and highly mobile remote workforce brings a whole new set of challenges.”
Dean Leung, Chief Customer Success Officer at cloud-based document management platform, iManage
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“AI and machine learning will be commonplace. If 2020 was the year when humans digitally transformed, then 2021 and beyond will be the years when humans digitally accelerated at a pace only previously seen in the movies.”
Richard Robinson, Managing Director of specialists in accelerating marketing performance & digital transformation, Econsultancy
8. Hyper-personalisation
The term ‘hyper-personalisation’ relates to the use of data to provide more personalised and targeted products, services, and content. This level of personalisation goes beyond traditional methods in that it allows organisations to drive personalised customer experiences in real-time.
The modern-day consumer uses multiple devices such as smartphones, laptops and wearable tech. These devices help businesses gather lots of useful information about customer lifestyle and online behaviour. Harnessing this data to implement personalised customer experiences across the purchase journey is key.
Roger Beadle, CEO of gig CX platform, Limitless says: “Many brands claim to provide personal customer service. In 2021, the experience will become orchestrated and hyper-personalised. Using data, brands will begin to proactively engage during the customer lifecycle to enhance the customer’s experience with the product or service creating more long-term value. Meal kit services are the perfect example, and peer-to-peer engagement at key decision points makes for a perfect match. This model is already in place at meal kit provider Sun Basket. It’s examples like this that show how personalisation can support customer success and engagement strategies.”
Where do you go from here? CX Trends 2021
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“Data is central to everything, and the way in which this data is owned, used, analysed, and manipulated by data analysts, scientists, engineers and marketers will become the defining hallmark of whether a business survives or thrives. Hyper-personalisation and the ability to conduct millions of relationships in real-time, guiding, supporting, and predicting the thought process of a human being will become the epicentre of CX.”
Richard Robinson, Managing Director, Econsultancy
9. Evolution of chatbots
Chatbots have revolutionised the way businesses deal with customers, helping them cut operational costs by up to 30% in recent years.
However, 2020 has shown us the importance of human interaction and the need to combine AI technology and humans to achieve a greater depth of customer experience, while gaining operational efficiencies. ‘Good enough’ support no longer cuts it.
In 2021, businesses are predicted to develop more seamless integrations between chatbots, live chat and call centre support, with the introduction of humanoid avatars also predicted.
Roger Beadle, CEO of gig CX platform, Limitless says: “2021 will be the year where automated and human interactions come together to improve CX journeys for customers. Imagine a quick pre-qualify via AI using natural language and a seamless hand-off to a knowledgeable human
as required. With more humans in the loop reviewing automated responses, this will enable companies to train and maintain the accuracy of their AI algorithms with confidence.”
Where do you go from here? CX Trends 2021
10. Authenticity and transparency
With so much ‘fake news’ and conspiracy theories going around in 2020, customers have had enough of misinformation.
Customers seek the truth and are not afraid to cut out any brands they deem dishonest. Open conversation is a win-win for both business and customer.
Engaging in real conversations online, keeping up-to-date with industry trends and offering advice and solutions in a timely fashion take brands a long way in 2021.
Keith Povey, Feefo says: “Brands will have to consider authenticity more than ever in 2021. Both employees and customers expect transparency and successful companies are
creating online communities for both. These digital environments allow employees and customers to share ideas, provide feedback and have two-way conversations, establishing a culture of trust and accountability while providing a platform for authentic engagement.”
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“Once heralded as the next frontier in customer experience, and widely used by retailers, banks, and online marketplaces, chatbots can no longer provide the level of service the modern consumer demands. Where chatbots fall short, AI-driven humanoid avatars can do much, much more. In 2021, we will see the first early adopters of this technology, as innovators bring their AI avatars to customer screens. Humanoid avatars and conversational AI will be a major trend in 2021, and will help brands build lasting relationships with their customers.”
David Semach, EMEA Head of AI and Automation at business consultants, Infosys Consulting
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“One key change we’ve seen is a renewed focus on sustainability. Our research revealed over a third (37%) of people are now more conscious of the environmental impact of their shopping habits than before the pandemic.
Benoit Soucaret, Creative Director at LiveArea EMEA
continue to grow as more and more businesses recognise that the way they treat their people has a material effect on the way their people treat their customers. Customers desperately need to feel empathised with – especially in times of stress – that can only happen if a business empathises with its employees first.”
Where do you go from here? CX Trends 2021
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“The digital acceleration driven by COVID-19 has led to the total reimagining of the workplace, and the role of the office for the workforce. The continued need for remote and hybrid working is going to lead to the necessary adoption of more flexible platforms for customer interaction, as both customers and customer service professionals switch up their working requirements from home, to office, and to mobile where needed. Businesses must now be able to serve customers under any circumstances from anywhere.”
David Parry-Jones, VP of EMEA at cloud communications platform, Twilio
11. Employee experience (EX)
HR leaders across the world are revisiting their business culture, and what steps they can undertake to revamp existing work culture and employee experiences.
The number of people working from home in the UK has increased this year, and the trend appears here to stay. Generally, staff are happier without having to worry about commuting, while enjoying flexible working and a better work-life balance. Therefore, businesses need to look at automating a number of tasks to provide support for their workers, no matter where they are, and consider what this means for career growth and management.
Ian Golding, CCXP, global customer experience specialist, Customer Experience Consultancy. says: “Businesses who have survived 2020 have done so largely down to the commitment, passion and persistence of their people. The significance of the employee experience will
‘Generally, staff are happier without having to worry about commuting, while enjoying flexible working and a better work-life balance.’
Where do you go from here? CX Trends 2021
12. Video will transform customer engagement
Videos allow customers to ‘see’ your brand in ways they otherwise may not be able to from wherever they are.
As more people are turning to online experiences, video provides a 360-degree view of your offering and engages other senses like sound and visuals to make the experience memorable.
That said, with up to 92% of consumers now watching video with the sound off, changing consumer patterns and behaviours need to be considered by all, which is why there has been such a rise in the introduction of subtitles and annotations over the last few years.
Most importantly, the pandemic has accelerated the adoption of video beyond entertainment, serving both sales and operational needs. Whether that be the meteoric rise of Zoom, estate agents providing virtual viewings or doctors offering video consultations, video has finally demonstrated its true potential in the commercial world, and beyond.
Gemma Schmid, Head of Brand and Communications at online estate agent Purplebricks says: “We’ve seen a lot of people using our video tools during the pandemic, which has helped sellers have more serious buyers come into their property. While some people will take a virtual tour and be happy enough to put in an offer, for many it works as a filtering process, which means that when someone does do a walk around, they’ve already bought into it.”
Customer experience is going to form the cornerstone of successful businesses in 2021 and Feefo lets you put your customers at the heart of your CX strategy.
Get in touch to find out how Feefo can become an integral part of your CX strategy for 2021.
Keith Povey concludes... “The learnings we can take from 2020 will only benefit the changing world in which we find ourselves. If anything, 2020 has driven businesses forward at an accelerated rate, laying the foundations for even greater evolution over the next five to ten years. Technology-driven customer experience is at the core of future business success.
Those that master the complex - and increasingly profilerated - purchase journeys consumers take will lead the way, while those who choose not to will struggle to compete.”
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”Video isn’t a new technology, but it’s not been widely adopted until now. In a relatively short space of time, we’ve seen it move from fringe technology to a core element of most organisations’ infrastructure. There can be no doubt we’ll see more businesses embracing video in 2021 and beyond.”
Richard Buxton, Director at collaboration solutions experts, N4Engage
Call us: 020 3196 8098Email: [email protected] feefo.com
