Customer experience shapes brand perception and loyalty, but gaps prevent many organizations from optimizing performance effectively. Jim DeLoach of Protiviti examines findings showing that while 47% of executives view CX as extremely important, only 17% optimize it well, revealing a challenge that extends beyond marketing to encompass cross-functional accountability, data privacy compliance, AI governance and reputation risk management across customer-facing and back-office processes.
Customer experience, or CX, embodies a sharp focus on customers, across both business-to-consumer (B2C) and business-to-business (B2B) business models. It covers all actions aimed at meeting the needs of customers. It encompasses the processes that interact with them directly or indirectly with the intention of fulfilling their expectations, providing ease-of-doing-business and maintaining their loyalty. Over time, studies have indicated that CX affects customer loyalty more than brand, product or price.
CX drives business growth by shaping brand perception and loyalty with each customer interaction. From a strategic standpoint, a differentiating CX creates the multiplier effect of customer loyalty, which is the compounding, exponential growth that results from a satisfied customer’s long-term engagement with and advocacy for a brand, yielding authentic referrals. For this reason, sustaining a distinctive CX is a business imperative, requiring executives to adapt quickly, seamlessly connect experiences, and update customer-facing and back-office processes to align them with the evolving expectations of both customers and employees. Agility is the name of this game.
The University of Oxford and Protiviti recently conducted a survey to understand business leaders’ perspectives on the future of customer experience. The survey of 251 company board members, C-suite executives and other business leaders was conducted in March and April across North America, Europe and Asia-Pacific (APAC). Following are key findings:
- Nearly half (47%) of global executives are of the view that CX is extremely important to business success, but only 17% say their company is extremely effective at optimizing its performance.
- Almost three-quarters (70%) say they are confident that their company’s leaders have a deep understanding of the needs, preferences and behaviors of the customers they serve.
- About two-thirds (64%) are confident in their company’s ability to derive strategic and actionable insights from customer data and feedback.
When it comes to the overall customer experience, global business leaders seem confident they are getting it mostly right; however, their responses also reveal areas for improvement, particularly around their company’s ability to optimize the effectiveness of CX performance.
The CX opportunity gap
The University of Oxford and Protiviti recently surveyed 251 company board members, C-suite executives and other business leaders across North America, Europe and Asia-Pacific to understand business leaders’ perspectives on the future of customer experience. The findings reveal a significant gap between CX aspirations and reality:
Nearly half (47%) of global executives view CX as extremely important to business success, but only 17% say their company is extremely effective at optimizing its performance. This 30-point opportunity gap between what leaders value and what they achieve presents a significant improvement opportunity.
Regional perspectives vary considerably. APAC business leaders express far more optimism and confidence in their CX strategies than their European counterparts, with North American executives falling in between. The opportunity gap ranges from 13 percentage points in North America to 43 points in APAC.
When asked where they excel most, executives ranked brand promise and personalization at scale first and second. As for where organizations fall short, omni-channel experiences and digital touchpoints topped the list. The good news: A strong majority (70%) of business leaders indicate they are confident their companies have a deep understanding of customer needs, preferences and behaviors. Armed with this awareness, it becomes a matter of execution from a channel and digital standpoint.
Regarding resources and readiness, two-thirds of business leaders assert they are confident their organization has the resources needed to manage effectively and improve CX performance. Over the past two to three years, 69% report an increase in investment in marketing resources, while 73% report increased spending on tools and technologies designed to enhance CX performance. Looking ahead, optimism grows: 85% expect increases in technology investment over the next two or three years.
A majority (57%) of business leaders report being confident that AI will improve their company’s ability to advance its CX journey, with nearly a quarter saying AI will be either “impactful” or “extremely impactful” over the next two or three years. Surprisingly, those over 50 years of age were more bullish (64%) on AI than those under 50 (46%).
Closing the CX optimization opportunity gap
The Oxford/Protiviti CX survey findings indicate that there is a CX optimization opportunity gap requiring the attention of business leaders over the next several years. It also suggests that not all leaders view CX as critical to their success; those leaders likely represent companies having little to no competition, a captive market or a business model involving little or no direct customer interaction. For example, they likely include monopolies and essential services (e.g., utility and telecommunication companies, healthcare and government services), businesses with non-customer-facing roles (e.g., data processing, warehousing and logistics) and B2B services (e.g., specialized manufacturing, cloud storage, and back-end software and infrastructure that compete on features, reliability and cost).
As for sectors prioritizing CX, a multipronged approach is needed across all facets of the CX lifecycle to close the optimization opportunity gap. Following are seven tenets to consider:
An “everyone is responsible” mindset with a focus on the “moments of truth” is a good start. Whether the model is B2B or B2C, market players must figure out what end customers want and drive their goals with an emphasis on the experience moments that matter — the “moments of truth.” Achieving growth through CX requires involvement from all functions, not just marketing. A unified vision aligns the organization with an obsessive customer focus. Data and analytics help identify needs, guide product and service design and inspire new approaches. Platforms and technology enable large-scale change through capability building and improved operations. Success is dependent on a full team buy-in.
CX is enhanced when customers can interact with a brand through multiple channels. If effectively integrated, physical stores, websites, mobile apps, social media and call centers offer a seamless experience without disruptions or loss of context. Information, preferences and history are consistent and accessible across all channels. Customers beginning an interaction on one channel (e.g., researching a brand’s offerings online) can continue it on another (e.g., purchasing in-store or via mobile), making their personal journey in interfacing with the brand more flexible and seamless. Consistent messaging and support strategies across omni-channels ensure that branding, communications and service levels remain consistent regardless of how or where the customer chooses to engage. Integration of data collected from various channels allows businesses to tailor recommendations, offers and communications to individual preferences and behaviors as well as facilitate faster issue resolution.
In effect, omni-channel strategies provide businesses with a holistic 360-degree view of customer interactions, helping them understand needs, pain points and preferences. The concept of anytime, anywhere service provides customers the freedom of choice in determining their preferred channel based on convenience, urgency and comfort, whether it is self-service online or face-to-face support. Omni-channel platforms make it easier to track and reward customer activity across all channels, encouraging repeat business and brand advocacy.
AI is revolutionizing CX personalization. The first signs of change in customer preferences are subtle. Market leaders gain advantage when they recognize those signs early and are positioned to adapt to change. By leveraging data and advanced analytics to tailor interactions, recommendations and services to individual customer preferences and behaviors in real time, AI is making personalization more effective. AI-powered recommendation engines can suggest products, content or services based on customer activity and historical data, enabling websites and mobile apps to adjust their layout, messaging and offers automatically for each visitor, creating a unique experience every time. AI-powered chatbots and virtual assistants provide instant, personalized support by understanding customer queries, accessing their history and offering tailored solutions 24/7. AI can analyze customer feedback and social media posts to gauge satisfaction and sentiment, helping brands respond with empathy and precision.
Digital touchpoints should meet customers where they are — online, offline or on mobile. These touchpoints often represent the first interaction customers have with a brand. A well-designed website or app can create a positive first impression that encourages further engagement. More importantly, the quality of digital interactions shapes customers’ perceptions of the brand, influencing their overall experience and loyalty. Touchpoints provide opportunities for customers to give feedback, enabling brands to listen and respond to customer needs promptly with emphasis on instant resolution, if possible. Embracing new technologies and trends at digital touchpoints to create unique experiences that resonate with customers is a sure sign of innovation in the market.
CX innovations and enhancements keep the process evergreen. Managing CX is an ongoing process. Feedback mechanisms with customers can offer information about possible improvements to CX. Data analysis and predictive analytics support timely feedback, which may influence customer satisfaction and loyalty. Customer-facing AI applications provide personalized interactions, identify issues proactively and automate tasks to support efficient and relevant customer service. It is essential that these systems are properly trained to align with management’s guidelines and maintain reliability in addressing common customer inquiries. As organizations evaluate these models for readiness and legal compliance, centers of excellence have emerged, and AI has been integrated into major content platforms.
Incentives underpin a customer-centric culture of shared accountability. They motivate employees, align organizational priorities and foster a culture that prioritizes customer satisfaction and loyalty. When designed thoughtfully, incentives encourage and reinforce behaviors and actions that prioritize customer needs and the delivery of exceptional service. They can be used to empower employees to identify and resolve customer pain points before they escalate; break down counterproductive silos and enhance collaboration across teams; and encourage suggestions for improving processes, products and services that positively impact CX performance.
Based on the company’s goals and known customer preferences, appropriate incentives should be implemented to align everyone who matters to the desired outcomes and drive process or technology improvements. Incentives tied to shared CX metrics encourage every function to contribute to the overall customer experience.
- Outcome metrics include satisfaction ratings, retention rates, repeat business and net promoter scores.
- Process metrics include first contact resolution, customer effort scores, customer churn rates, customer lifetime value and average resolution time.
The incentives structure should support a seamless operating model from the customer’s perspective.
Compliance with laws and regulations governing customer interactions and data is table stakes. Whether general or industry-specific, data privacy regulations have proliferated across the planet and must be complied with to retain market permission to play. Wherever the company operates, everyone supporting CX directly or indirectly must be trained in data security and transparency compliance matters. Customer-facing processes and market offerings must support a compliant CX. Potential risks should be assessed and mitigated. For CX leaders, the end game is clear: Build transparency and trust with customers, manage reputation risk and avoid the embarrassment of fines, penalties and lawsuits.
Looking to the future
CX will remain of vital importance in many sectors. Clear communications, transparency, easy account navigation, proactive updates, respect for preferences, personalization and world-class data management, all coupled with a commitment to continuous improvement, will enhance the customer journey. Timely and relevant messages delivered at points of need will be essential. A clear vision to align multiple parts of the organization toward a customer-centric focus will lay the foundation. Customer-focused data and analytics should facilitate a timely understanding of evolving needs and the design of relevant processes, products and services. AI and other technologies and platforms will drive further innovations and enable scalable growth through improved capabilities, responsible deployments, focused performance measures and established accountabilities for results.
For CX to be successful, everyone who matters should be on board. The bottom line: Customers will expect choice, and the companies that offer them integrated channel options are most likely to succeed.
Jim DeLoach, a founding 
