1、engage ment to empower mentWINNING IN TODAYS EXPERIENCE ECONOMYimperativesPART IA Note from Pete Stein Its my pleasure to introduce this years edition of Merkles Customer Experience Imperatives.This is the first of multiple reports well be publishing to reveal and assess the data we gathered in Q4 o

2、f 2023,exploring both consumer and business decision makers perceptions and attitudes toward customer experience.The research we conducted shows that on average,only 2.5 sources of information influence a consumers brand decision and there isnt much deviation across geographies and verticals.Brands

3、dont have the margin for error they once did;when shopping around,consumers consider more options but decide more quickly.More than ever,customers know exactly what they want,where to get it,and how long it should take.Its up to us,as leaders of brands and businesses,to deliver on these expectations

4、 or else well lose to competitors.In the following pages,and in subsequent breakdowns and deep dives to follow,youll find actionable insights to guide your CX transformation and improve your customers daily lives.I hope this exploration enriches your business strategies and elevates your customer re

5、lationships for years to come.Sincerely,Pete Stein Global President,Merkle2ENGAGEMENT TO EMPOWERMENTintroductionIf youre new to Merkles CX Imperatives series,welcome.If youve been on this 12-year journey with us,welcome back.Weve changed things up a bit this year.In previous installments of the Impe

6、ratives,weve offered educated points of view and advice to customer experience(CX)practitioners.For 2024,we supplemented our own experience with research into consumers and brand professionals across the globe.Rather than make inferences about how consumers and business decision makers are grappling

7、 with persistent economic uncertainty,geopolitical strife,and mixed messaging about how technology will alter our lives,we took a more direct approach:we asked them.3ENGAGEMENT TO EMPOWERMENTProfiling Respondents:CX Consumer SurveyTotal N=2,100Individuals who had a qualifying consumer interaction wi

8、th one or more brand categories in the past 3 months.Surveys administered in 6 languages.NAM:33%EUR:33%APAC:33%CountryGenderRetailer73%Restaurant or food service64%Healthcare provider60%Financial services55%Packaged goods48%Clothing or textile44%Technology or telecoms44%Travel or transportation43%Ho

9、spitality37%Insurance provider34%Entertainment33%Electronics or technology33%Household goods31%Media brand31%Nonprofit organization26%Vehicle manufacturer21%Software company21%Outdoor equipment15%CX Category Interacted Within Past 3 MonthsAge46%54%MaleFemale18 to 24 years25 to 34 years35 to 44 years

10、45 to 54 years55 to 64 years65 years or older4ENGAGEMENT TO EMPOWERMENTProfiling Organizations&Respondents:Business Leaders SurveyTotal N=820Leaders with decision making influence on customer experience at their organizations.Surveys administered in 6 languages.NAM:34%EUR:33%APAC:33%CountryPrimary B

11、usiness CustomersB2B and B2CB2BB2C32%28%40%Company Size(Global Annual Revenue)Median Revenue:$2.6 billion$250 MM to$499 MM$500 MM to$999 MM$1 bn to$4.9 bn$5 bn to$9.9 bn$10 bn or moreRetail&CPG18%Tech&Telecom17%Fin Serv&Insurance16%Auto&Mfg.15%Healthcare12%Media&Entertainment9%Nonprofit9%Travel9%Ind

12、ustry5ENGAGEMENT TO EMPOWERMENTThis research provides reported consumer preferences about their brand experiences not conjecture.Concurrently,we also examined brand leaders perceptions and actions and assessed whether they align with consumer opinions and values.We grouped brand leaders into cohorts

13、 based on the maturity of their CX strategies,commitment to customer centricity,customer retention,and organizational approaches to CX technology,all of which are fundamental to delivering customer value.For this paper,which is the first of many to come based on this study,well take a look at the co

14、nsumer side of the research.what do consumers want?ENGAGEMENT TO EMPOWERMENTOur consumer study reveals six critical imperatives for CX professionals:Understand CX fundamentals from the customers point of view.Use customer data for the customers benefit.Use ethical AI to create convenience and build

15、trust.Meet the customers need for real live human interaction.Focus on the post-purchase experience.Assess emerging technologies to empower customers in new ways.00821331628387ENGAGEMENT TO EMPOWERMENTUnderstand CX fundamentals from the customers point of view.018ENGAGEMENT TO EMPOWERMENT

16、Consumers preferred attributes of future experiences with brandsmore reliable and consistent every time40%Make my experience(%selecting all that apply)more affordable or cost effective55%55+y/o(60%)easier or more convenient46%APAC(54%)more well-informed(more information,research tools,etc.)34%18-34

17、y/o(41%)more personalized or customized to my individual wants and needs34%18-34 y/o(38%)45-55 y/o(37%)more personal or human in nature31%18-34 y/o(35%)more fun or enjoyable27%18-34 y/o(37%)better match or support my personal values and beliefs22%18-34 y/o(31%)Significantly higher vs.other segmentsS

18、ignificantly lower vs.other segments9ENGAGEMENT TO EMPOWERMENTConsumers want cost effectiveness,convenience,and consistency from their brand experiences.Think of them as the“3 Cs”of customer experience the bare minimum that brands must deliver for their customers.There are some nuances across catego

19、ries,of course,but generally,these three factors rose to the top:The 3 Cs are so fundamental theyre worth unpacking:Convenience02Consistency03Cost Effectiveness0110ENGAGEMENT TO EMPOWERMENTDelivering cost effectiveness means delivering value.Consumers in general want a good deal they dont want to pa

20、y more than they have to,especially with inflation running higher than usual.But“value”doesnt necessarily mean“cheap.”A person in the market for a luxury watch may not be looking for an inexpensive product,per se,but they do want the most value from their purchase.This attribute over-indexed among o

21、lder audiences.Cost Effectiveness0111ENGAGEMENT TO EMPOWERMENTConvenience can refer to a consumers ability to gather information,purchase in their preferred manner,or use and/or maintain a product or service with minimal effort.Its about removing friction and frustration from the customers daily lif

22、e.Convenience0212ENGAGEMENT TO EMPOWERMENTConsistency is delivering on your promise to consumers.This doesnt necessarily mean an experience thats unchanging.For instance,to a regular at a restaurant,“consistency”may mean that the signature dish always looks and tastes the same,while to another patro

23、n,it means that the menu is constantly changing to offer new flavors.The common denominator is that consumers receive what theyve come to expect.Consistency0313ENGAGEMENT TO EMPOWERMENT.have a customer-first culture where all functions and departments are united around delivering an exceptional cust

24、omer experience.regularly and rigorously evaluate the customer experience from the customers point of view,with a focus on eliminating friction and delivering added value above and beyond the core product or service.CX leaders.14ENGAGEMENT TO EMPOWERMENTAm I focused on providing value to my customer

25、s,or just selling to them?Are my brand experiences making my customers lives easier?Where is there friction that could be eliminated?Am I delivering a consistent and consistently excellent brand experience across touchpoints and over time?ask your self?How do you understand what the 3 Cs mean for in

26、dividual customers?Look at the data.15ENGAGEMENT TO EMPOWERMENTUse customer data for the customers benefit.0216ENGAGEMENT TO EMPOWERMENTConsumers views on brands use of customer dataWhen I interact with CATEGORY I generally trust how that company is collecting and using my personal/customer data.Whe

27、n a CATEGORY brand tailors communications to me personally(for instance,by showing me ads for products I have recently searched for),I generally find it useful or helpful.When I interact with CATEGORY brand,I think the company is mainly interested in using my personal/customer data to improve my cus

28、tomer experience.When I interact with CATEGORY I am generally skeptical about how that company is collecting and using my personal/customer data.When a CATEGORY brand tailors communications to me personally(for instance,by showing me ads for products I have recently searched for),I generally find it

29、 uncomfortable or intrusive.When I interact with CATEGORY brand,I think the company is mainly interested in using my personal/customer data to make more money.48%45%28%30%24%25%18-34 y/o(56%)APAC(54%)Healthcare(50%)55+y/o(33%)NAM(30%)30%38%32%Agree More With STATEMENT ANeutral/Agree EquallyAgree Mor

30、e With STATEMENT BSignificantly higher vs.other segmentsSignificantly lower vs.other segments17ENGAGEMENT TO EMPOWERMENTConsumers are mostly comfortable trusting brands with their personal data.This says a lot about the state of CX,and how it has improved over time.It also probably reflects a younge

31、r consumer base maturing into adulthood,and a growing share of digital natives fueling the economy.That said,consumers share their data with the expectation of fair value in return:brands must provide cost effectiveness,convenience,and consistency in exchange.And its noteworthy that despite their ov

32、erall sense of trust,consumers are less confident that brands are interested in using this data to improve their customer experience to the tune of a 10-point variance(the third bar vs.the first bar on the prior page).Its worth remembering that younger generations have the highest expectations for s

33、eamless,personalized customer experiences so dont mistake consumer complacency for consumer trust.The bar for brands will only continue to rise over time.To maintain trust and goodwill,brands need to commit to delivering tangible benefits to customers when leveraging their data.18ENGAGEMENT TO EMPOW

34、ERMENT have a data strategy that transcends organizational departments and functions.organize customer data in a way that allows them to recognize unique customers,seamlessly connect experiences,and measure customer lifetime value.CX leaders.19ENGAGEMENT TO EMPOWERMENTask your self?In managing massi

35、ve amounts of customer data,brands have an obligation to protect and process information within clear ethical guardrails.Well explore what this means in the next section.Do my customers understand how their data is used,and how its deployed to make their experiences better and more seamless?Does thi

36、s feel like a fair exchange of value?20ENGAGEMENT TO EMPOWERMENTUse ethical AI to create convenienceand buildtrust.0321ENGAGEMENT TO EMPOWERMENTWhether the technology could provide you with the right output or answer46%29%25%Whether the technology put human beings out of work50%Whether the technolog

37、y was biased(ethically,politically,racially,etc.)41%27%Whether you could opt out of the technology39%32%Whether you could get support or help from a human49%27%55+y/o(54%)Whether the technology could understand what you want it to do46%28%55+y/o(51%)Whether the technology was supervised or monitored

38、 by a human being44%28%18-34 y/o(48%)Whether you could understand how to use/interact with the technology38%30%18-34 y/o(44%)Consumers concerns regarding brands use of artificial intelligenceWhether your data/privacy/identity is being protected58%21%Whether the technology could be hacked or hijacked

39、 to cause harm57%22%Whether the technology was recording you51%25%Whether the technology was tracking you(after you stop using it)50%23%SURVEILLANCE55+y/o(61%)18-34 y/o(56%)SECURITYHighly ConcernedModerately ConcernedSignificantly higher vs.other segmentsSignificantly lower vs.other segmentsNote:Con

40、sumers in North America and female consumers over-index significantly on most concerns.22ENGAGEMENT TO EMPOWERMENTthe urgency has never been greater.AI can,without proper oversight,produce unintended consequences that ruin the consumer experience and destroy brand trust.We explored some of these exa

41、mples in last years Imperatives,including how unintended biases can exclude or alienate valuable audiences.Practicing ethical AI is a critical step in mitigating consumer concerns about security and surveillance.Its also the right thing to do.Embracing an ethical approach to AI from the start will s

42、et you up to quickly deploy future innovations in a way that enhances customer experience and builds trust.With generative AI poised to upend the limits of content production and scalability,consumers see room for brands to improve experiences with AI-powered technology.As brands rush headlong into

43、this new,automated future,security and surveillance are consumers top concerns.For all the value AI promises to unlock,it would be shortsighted to brush aside these significant(and valid)concerns.Its up to brands to provide reassurance and transparency around how AI is used,within a technical and et

44、hical framework that ensures security and accountability.Weve been outspoken proponents of ethical AI for over two years now,and with the explosion of interest in generative AI,Merkles definition of“ethical AI”Establishing guidelines and practices to ensure that artificial intelligence is used in a

45、way that respects fundamental values,such as individual rights,privacy,nondiscrimination,and non-manipulation.23ENGAGEMENT TO EMPOWERMENT are rapidly deploying AI-powered technologies,within the context of a customer-centric strategy.have frameworks in place to ensure AI is deployed in a secure,unbi

46、ased,transparent,and permission-based manner.CX leaders.24ENGAGEMENT TO EMPOWERMENTask your self?As you evolve your AI strategy and pursue the benefits of automation,make sure you dont accidentally overlook your customers desire for human connection and support.Does my organization have a clear,cohe

47、rent strategy for enterprise AI?Does that strategy prioritize building consumer trust and improving experience,or is it more about cutting costs through automation?Do we have guardrails and a governance framework in place to ensure our use of AI is measurable,ethical,and transparent?25ENGAGEMENT TO

48、EMPOWERMENTMeet the customers need for reallive human interaction.0426ENGAGEMENT TO EMPOWERMENTConsumers preferences for digital vs.human interactions with brands at different stages of their journeysDigital Experiences Strongly Preferred(+20%or more)Human Experiences Strongly Preferred(+20%or more)

49、INDUSTRIESJOURNEY STAGERetail&CPGTech&TelecomMedia&EntertainmentTravel&HospitalityAuto&Mfg.FinServ&InsuranceHealthcareNonprofitResearchingMore Human(+6%)More Digital(+16%)More Digital(+21%)Equal Split(+/-5%)More Digital(+11%)More Digital(+7%)More Human(+19%)Equal Split(+/-5%)Evaluating/SelectingMore

50、 Human(+13%)More Digital(+20%)More Digital(+12%)Equal Split(+/-5%)Equal Split(+/-5%)Equal Split(+/-5%)More Human(+21%)Equal Split(+/-5%)PurchasingMore Human(+21%)Equal Split(+/-5%)Equal Split(+/-5%)More Human(+17%)More Human(+20%)Equal Split(+/-5%)More Human(+27%)More Human(+13%)PayingMore Human(+7%

51、)More Digital(+30%)More Digital(+31%)More Digital(+8%)More Digital(+11%)More Digital(+28%)Equal Split(+/-5%)More Digital(+10%)Requesting SupportMore Human(+42%)More Human(+34%)More Human(+32%)More Human(+44%)More Human(+21%)More Human(+38%)More Human(+48%)More Human(+42%)27ENGAGEMENT TO EMPOWERMENTO

52、ur research found that brands overestimate consumers preference for digital experiences at every stage of the journey.Despite the ubiquity and rapid evolution of digital technologies,there is still a strong need and desire for human interaction,especially when it comes to complex purchase processes

53、and customer service.In a nutshell,consumers are generally looking for digital payments but in-person support.And perhaps surprisingly,our research shows that consumers prefer to make purchases in person across many verticals.Its worth noting that physical and digital channels are increasingly inter

54、twined,and consumers typically dont perceive a hard distinction between the two.Its likely that even the hundred-year-old bookstore in your town has a website with digital payment options.Nonetheless,the convenience of digital channels and spaces doesnt preclude the consumers desire for human connec

55、tion and support.Its also important to recognize that technology can enhance human interactions.For example,technology can help a customer service agent quickly understand a callers history,making the interaction more efficient and more personal.Digital technology and human representatives should wo

56、rk in harmony to deliver experiences that make the customer feel recognized and valued.When they dont,personalized experiences unravel,becoming awkward and repetitive at best,disjointed and frustrating at worst.Consumers are generally looking for digital payments but in-person support.28ENGAGEMENT T

57、O EMPOWERMENT work together to deliver complete,connected customer experiences.empower all employees,especially front-line associates and representatives,with digital tools,technology,and training to help them deliver seamless,personalized service.CX leaders.29ENGAGEMENT TO EMPOWERMENTask your self?

58、Consumers rely heavily on word of mouth when making purchase decisions,which is one reason why the post-purchase experience is so important and probably more valuable than all the upper funnel marketing stages where marketers spend most of their time.Do I truly understand when my customers want to e

59、ngage with my brand digitally,in person,or with a human representative?Do our physical and digital touchpoints work together in a complementary way,or are they disconnected?How can digital technologies enhance the in-person experience and empower our employees to deliver exceptional experiences?30EN

60、GAGEMENT TO EMPOWERMENTFocus on the post-purchase experience.0531ENGAGEMENT TO EMPOWERMENTBrands top areas for improvement across the consumer journey#3 area for improvement#2 area for improvement#1 area for improvementINDUSTRIESJOURNEY STAGERetail&CPGTech&TelecomMedia&EntertainmentTravel&Hospitalit

61、yAuto&Mfg.FinServ&InsuranceHealthcareNonprofitBase(N=)2742572266245Finding/ResearchingEvaluating/SelectingPurchasing/PayingAssembling/Using/CustomizingFixing/Maintaining32ENGAGEMENT TO EMPOWERMENTMost marketers focus on the upper funnel progression from awareness to purchase;but when aske

62、d where brands could improve their experiences,consumers strongly emphasize the later,post-purchase stages of their journeys.This is an important reminder that the total customer experience extends far beyond conversion and offers plenty of room for improvement and the creation of new value.If the g

63、oal is customer retention and lifetime value and when is it not?then product usage,customization,repair,and customer service and support all play an outsized role.In the experience economy,people buy entire experiences not just products and services.The bulk of the experience,and often the most mean

64、ingful part,happens after the purchase.In other words,you cant rest on your laurels just because you made the cash register ring.As consumers,weve all had experiences that degrade over time:being spammed relentlessly by a brand once youve bought something from them;being retargeted by an ad for a pr

65、oduct you already bought(maybe in a different color);being solicited for donations by your alma mater right after graduating with student loan debt.This recalls the importance of consistency in CX if youre providing care and attention to the touchpoints before the sale,the same consideration must be

66、 paid after.The bulk of the experience,and often the most meaningful part,happens after the purchase.33ENGAGEMENT TO EMPOWERMENTLoyalty programs alone cant fully solve the problem of customer churn.A loyal customer will evangelize your brand to friends and family,and maybe even recommend you in an o

67、nline forum or in a social media post.A tepid or annoyed customer wont.And an angry customer will send your customers straight to your competitors.For all these reasons,loyalty programs alone cant fully solve the problem of customer churn.While they certainly play a role in fostering and growing rel

68、ationships,theyre best suited to amplify what customers already like about a brand.As one Merkler put it,“Im loyal to Tylenol because it takes my headache away,not because they gave me a pen.”Loyalty programs are part of the overall post-purchase experience,but they cant carry the entire load,or com

69、pensate for subpar service,support,or a bad product.34ENGAGEMENT TO EMPOWERMENT look to create and capture value above and beyond the moment of purchase.measure the success of their CX programs through customer lifetime value and not just by short-term metrics like clicks or conversions.CX leaders.3

70、5ENGAGEMENT TO EMPOWERMENTask your self?Many emerging technologies promise to deliver entirely new forms of customer engagement,sometimes in thrilling ways.But our data shows that a rigorous,data-driven approach to evaluating the future potential of emerging tech is essential when planning your CX i

71、nvestment strategy.Are we truly optimizing the total customer experience or are we mostly focused on customer acquisition?How can digital technologies be used to extend,enhance,or customize the experience of using our products and services?Is my loyalty program purely transactional/rewards-based,or

72、is it a multifaceted program designed to engage customers emotionally over time and encourage advocacy?36ENGAGEMENT TO EMPOWERMENTAssess emerging technologies to empower customers in new ways.0637ENGAGEMENT TO EMPOWERMENTSelf-service checkout/payment systemsAPersonalized emails or messagesBBrand/com

73、pany mobile appsCCustomer loyalty or rewards programDPersonalized product/service recommendationsEChatbot or virtual assistantFPersonalized advertisementGSmart home devices/smart appliancesHVoice commerce(i.e.,making a purchase vocally on an audio device)IVideo chat platformJNatural language process

74、ing(NLP)platformKMetaverse,AR or VR experiencesLUsage(%interacting in past 2-3 years)CX Impact(%citing improved experience)50%0%5%10%15%20%25%30%35%40%55%60%65%70%75%80%85%90%Low Usage&ImpactHigh Usage,Lower ImpactHigh Usage&ImpactLow Usage,High ImpactBFGJHLIKACDEConsumers perceived use and stated i

75、mpact of popular emerging technology38ENGAGEMENT TO EMPOWERMENTTo the consumer,not all emerging tech is created equal.Some dominant brand tactics rank low in their reported ability to impact the customer experience.In our survey,we asked consumers to rank the impact and perceived use of popular emer

76、ging technology and discovered some clear groupings.Low impact emerging tech:The upper left quadrant shows frequently experienced emerging tech that consumers deem least impactful.Self-service checkout/payment systems and personalized emails/messages occupy this space.The lower left quadrant include

77、s lesser experienced/low impact tech,including chatbots/virtual assistants,personalized ads,and video chat platforms.This may surprise readers who are actively employing this tech,so its worth emphasizing that consumers may not be taking notice or engaging with them.A few of the lower impact options

78、(e.g.,chatbots,video chat platforms,personalized ads)may conjure feelings of annoyance or creepiness.We expect these technologies to improve over time,especially as theyre made“smarter”by additional data processing,better algorithms,and more thoughtful creative and design.Low Usage&ImpactHigh Usage,

79、Lower ImpactBFGJASelf-service checkout/payment systemsAPersonalized emails or messagesBChatbot or virtual assistantFPersonalized advertisementGVideo chat platformJ39ENGAGEMENT TO EMPOWERMENTHigh Usage&ImpactLow Usage,High ImpactHLIKCDFBrand/company mobile appsCCustomer loyalty or rewards programDPer

80、sonalized product/service recommendationsESmart home devices/smart appliancesHVoice commerce(i.e.,making a purchase vocally on an audio device)INatural language processing(NLP)platformKMetaverse,AR or VR experiencesLHigh impact emerging tech:Frequently experienced and high impact technology include

81、apps,loyalty programs,and personalized product recommendations.These are plotted in the upper right quadrant.As one might expect,brand investment in these areas is already significant and likely to hold steady.Last but certainly not least are infrequently experienced but most impactful types of emer

82、ging tech,charted in the lower right quadrant.Smart devices,voice commerce,NLP platforms,and virtual/augmented reality meet these attributes.These are the innovations to which brands should pay the most attention,as they have already demonstrated impact with early adopters.Perhaps not surprisingly,c

83、onvenience underpins all four when done correctly and in appropriate settings,they bring ease of discovery,research,and/or purchase to a consumers immediate environment.Consider this data directional rather than prescriptive;not every brand benefits from putting products in the Metaverse,for example

84、.When approaching emerging tech,the objective should be to solve real,identified customer problems.If the tech doesnt meet that requirement,it should be reconsidered or retooled.Wherever possible,examine and measure the behaviors of early adopters to place informed bets on which new technologies mig

85、ht be ready for the mainstream.Consider running controlled experiments to determine whether specific technology innovations are truly making a positive impact on overall customer experience.Innovations that pass the test can be scaled up and industrialized to reach and empower a broader audience.40E

86、NGAGEMENT TO EMPOWERMENT experiment with emerging technologies that have the potential to solve customer problems in new ways.have a data architecture in place that makes it easy to measure the adoption and impact of new technologies across audiences.CX leaders.41ENGAGEMENT TO EMPOWERMENTask your se

87、lf?Does my organization have a formal strategy to rigorously evaluate emerging technologies,or are we reactive to media hype?Do we have a clear understanding of the capabilities,limitations,and business impact of technologies in use today?When emerging technology demonstrates positive impact for ear

88、ly adopters,do we have a plan to increase investment and bring these new capabilities to the mainstream?42ENGAGEMENT TO EMPOWERMENTIn the age of customer empowerment,a brands ability to anticipate shifting needs and behaviors may be the ultimate competitive advantage.A confident,cost-conscious,digit

89、ally connected customer has no time(or money)to waste on brand experiences that do not materially improve their life experience.Trends,digital and otherwise,will always come and go.Brands that stay focused on improving their customers lives can learn to distinguish distractions from true disruptions

90、,and have the best chance of thriving over the long term.Amid all the noise,its necessary to get to the heart of what connects you to your customers.What do they like about you?How do you fulfill their needs?How can data,technology,and real human interactions work together to improve the overall exp

91、erience?What else could you be doing better to deliver a fair,fruitful exchange of value?Remember,in the experience economy,its not just about the product or service;its the sum total of all touchpoints and interactions working together to deepen relationships and build trust.When they feel seen,sup

92、ported,and valued,empowered customers can move your business forward.Conclusion43ENGAGEMENT TO EMPOWERMENTPrimary research comprised online surveys of N=820 CX professionals with decision-making influence on customer experience at their organizations and N=2,100 consumers who had a qualifying consum

93、er interaction with one or more brand categories in the past 3 months.Surveys were administered in six languages to professionals and consumers based in 18 countries across North America,Europe,and the Asia-Pacific region.Survey fieldwork conducted October-November 2023.Methodology44ENGAGEMENT TO EMPOWERMENT