Which Industries Are Leading In Customer Journey Delivery
Customer experience (CX) and customer journeys are no longer the abstract marketing concepts they were only a few years ago. Gartner found that as recently as 2010, only 36 percent of companies competed on mostly CX. By 2016, that percentage grew to 89 percent. The trend has only continued since that time.
These new-world marketing practices allow brands to form and sustain relationships with customers by moving beyond single touchpoint personalization to a cross-channel, omni-channel journey. And, they’re working—companies are investing in CX because of its impressive ROI potential.
By providing a consistent experience across channels, brands can increase ROI, reduce churn and increase lifetime value in the long term. Gone are the days of competing on price alone. Brands now must use CX as a competitive advantage to differentiate themselves and deliver marketing value.
The benefits of an engaging customer experience are increasingly clear. As a result, interest in using customer journeys to shape CX is growing across a variety of markets. These firms are starting deliver unified messaging on all channels for a consistent customer journey. Certain industries are further along, while others are still getting their feet wet.
Which Sectors are Heading the Charge?
Our recent State of the Customer Journey 2021 report studied the customer journey space. We analyzed customer interaction data from almost 10 billion journeys delivered on by CSG Xponent™. What we’ve learned from this data and our clients is that to succeed, marketers must best their competitors’ CX and journey strategy if they want to stay in the game. In particular, retailers and financial services have seen significant journey success.
Retailers: Customer Journey’s Early Adopters
As the clear cross-industry leader in CX, major retailers dominate the customer journey space. The most savvy businesses are constantly innovating their digital, in-person and cross-channel experiences to provide seamless delivery for their customers. This drives more sales, and Starbucks is a prime example. This brand took the time to reimagine real-time customer engagement regardless of interaction touchpoint. AdAge calls this innovation a necessity.
Retailers have invested in CX for several years. Since, this industry has shown significant maturation in their use of CX. Considering this industry’s development, retailers cannot build a competitive edge on just innovative products and low prices. CX is a necessity and retail marketers are using journeys to achieve it with strong results. Forrester found that leading companies invest in CX, which allows them to grow significantly faster than the laggards. This potential has and will continue to drive many retailers to take action in this space.
Financial Services is Right Behind the First Movers
While many praise retail’s use of customer journeys, financial services is the industry to watch. Perhaps more than any other industry, financial service providers have a vested interest in gaining insights into customer needs and behaviors. Typically, this industry is known for its undistinguished customer experience. In addition, most insurers know why a customer is contacting them (to process a claim, to ask a question, etc.). This means that, in practice, they offer similar experiences. Exceptional and efficient CX is one of the only things that can set vendors apart in a crowded market.
To do so, the more creative insurers turn to customer journeys to deliver long-term competitive advantage. In particular, this industry is well positioned to take full advantage of journeys leveraging the Internet of Things (IoT). Connected devices can track behavior or health metrics to inform how they best serve their customers and deliver personalized plans or recommendations.
IoT is the primary driver of the increase in journey interaction volume on our platform. If executed correctly, this exciting channel allows for clear differentiation.
Every Industry Can Benefit From Smart Journey Technology
More companies are testing the waters in this burgeoning space and beginning their first data-driven, cross-channel engagement projects. Over time, customer journey interaction volumes will continue to increase. Regardless of industry, CX is the most crucial element of a successful marketing program. Businesses must adapt accordingly.
Want to learn more about the latest developments in the customer journey space? Check out the full State of the Customer Journey 2021.